Wipro quarterly net profit rises 18%, beats estimates as Azim Premji talks positive

Jan 19 2013, 11:18 IST
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Wipro Ltd's Oct-Dec profit jumped 18% to Rs 1,716.4 crore, revenue soared 10% to Rs 10,989.1 crore.  (Reuters) Wipro Ltd's Oct-Dec profit jumped 18% to Rs 1,716.4 crore, revenue soared 10% to Rs 10,989.1 crore. (Reuters)
SummaryWipro's consolidated revenue grew 10.27% to Rs 10,989 crore from Rs 9965 crore a year ago.

margin than expectation. Guidance looks softer than what consensus might be expecting," according to a Prabhudas Lilladher report.

Revenues of the Bangalore-based firm rose 10 per cent to Rs 11,025 crore for the third quarter of 2012-13 fiscal, from Rs 9,965.1 crore in the same period of last fiscal.

The IT services revenue, which accounted for 78 per cent of total revenues, stood at USD 1.577 billion (Rs 8,602 crore in rupee terms) in the quarter, up 4.8 per cent year-on-year and 2.4 per cent compared to July-September 2012 quarter.

Wipro expects revenues from IT services business to be in the range of USD 1.585 billion to USD 1.625 billion for the quarter ending March 31.

In constant currency, the IT services revenue for the October-December quarter, at USD 1.571 billion, "was within our guidance range of USD 1.560 billion to USD 1.590 billion", Wipro said.

"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity... Overall, economic factors are stabilising globally," Chairman Azim Premji told reporters here.

He added that the US economy is showing some improvement with increase in retail and consumer demand and stability in unemployment rate, while Europe is steady and global leaders he spoke to are now more confident on the business environment than they were two-three months ago.

The US and Europe account for more than 75 per cent of India's IT outsourcing revenue.

Though the company remains positive on demand environment in the quarters ahead, it expressed uncertainty on execution and ramp-ups of new projects.

"It has become a little more positive. That's the good news," Wipro Executive Director and CEO (IT Business) T K Kurien said.

"The bad news is that from our perspective we see two challenges. One, we see the fiscal cliff talks still continuing and we don't know when finally the budgets would come in. And, what it would mean in terms of buying in this quarter," he added.

Kurien further said: "From our own perspective, we have picked in a little bit on caution in our guidance so that we don't kind of fall short in case the environment turns negative."

The New York Stock Exchange-listed company's results are in line with its larger peers - TCS and Infosys - which saw revenues rising 21.7 per cent and 12.1 per cent for the October-December quarter, respectively.

"We have seen broad-based growth in the quarter with all our verticals

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