Wipro quarterly net profit rises 18%, beats estimates as Azim Premji talks positive
Wipro – India’s third largest IT services exporter – on Friday beat street forecasts with a 17.85% growth in consolidated net profit for the third quarter ending December 31, 2012.
The company posted net profit of Rs 1716.4 crore as compared to Rs 1456.4 crore in the corresponding period a year ago. Sequentially, profit grew 6.5%.
The company's consolidated revenue grew 10.27% to Rs 10,989 crore from Rs 9965 crore a year ago.
Wipro's IT services business posted revenue of $1577 billion, a growth of 2.4% sequentially and 4.8% compared to the year-ago period. In rupee terms, revenue grew 13% year-on-year to Rs 8602 crore.
The IT services arm posted earnings before interest and tax (EBIT) of Rs 1792 crore ($327 million), a 13% increase year-on-year. The company said the operating income to revenue margin for IT services was 20.8% for the quarter, an increase of 0.1% sequentially.
Wipro's IT Services arm contributed to 78% of total revenue and 92% of operating income for the quarter ended December, the company said.
“We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition,” said T K Kurien, Executive Director and Chief Executive Officer, IT Business. The IT business added 50 new customers during the quarter.
“We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital
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