Wipro Technologies, the global IT services and products business of Wipro Ltd, will ?hold on to expand? margins. Wipro, which saw a dip in its operating margins due to the rising rupee, said it expects volume-led growth with stable pricing for the June quarter in spite of taking a hit due to H-1B visa cost and 8 million restricted stock units given to its employees.
For fiscal 2008, the operating profit margin was 21.6% down from 24% a year ago. ?The 11% rupee appreciation against the dollar dented margins by 3.6%, while Infocrossing acquisition had an impact of 55-60 basis points. There was 1% impact due to wage hikes given to onsite employees in January. But we have done a fair amount of recovery and will hold on to expand the margins for the full fiscal,” chief financial officer Suresh Senapaty said.
He also said that overall pricing was looking stable with a positive bias. ?New customers are coming at 4-5% higher rates,? he said. Wipro had a blended price rise of 1.4% and volume growth of 30% for fiscal 2008.
The company has also expanded its graduate training programme WASE and will hire 3,500 science graduates for FY 2009 compared to 1,200 graduates in fiscal 2008. Campus offers were made to 14,000 students, compared to 10,000 a year ago. ?There is a significant bias towards freshers? hiring in the current fiscal. However, lateral hiring would be tied to demand environment,? head of human resources Pratik Kumar said.
Segment-wise, the global IT services and products business recorded revenue of Rs 13,642 crore, a year-on-year growth of 23% and profit before interest and tax (PBIT) was at Rs 2,940 crore, an increase of 9%. Wipro Infotech, the India, Middle East and Asia Pacific business, recorded revenue of Rs 3,746 crore, up 51%, while PBIT grew 46% to Rs 312 crore. Wipro Consumer Care and Lighting business recorded revenue of Rs 1,521 crore with PBIT of Rs 190 crore, a year-on-year increase of 86% and 89% respectively.
