Wipro Q3 net profit up 27% at Rs 2,010 crore
Bangalore: IT services major Wipro on Friday posted a 27 percent jump in net profit, in line with market expectations, for the quarter ended December 31, helped by strong growth in infrastructure services, client spending and improved efficiencies.
The city-headquartered firm posted a net profit of Rs 2,010 crore in the December quarter against Rs 1,589 crore in the year-ago period.
Consolidated revenue rose by 18 percent to Rs 11,330 crore from Rs 9,589 crore.
Commenting on the performance, Wipro Chairman Azim Premji said: "As the global economy is progressing towards stability, we see optimism amongst clients, especially in the West."
Corporations are leveraging technology to reduce operational costs and investing resources in differentiating themselves in the marketplace, he added.
Wipro's IT services revenue stood at USD 1.67 billion (Rs 10,330 crore), a y-o-y rise of 6.4 percent in dollar terms.
"During the quarter, our Global Infrastructure Services business grew strongly on revenues," Wipro CEO T K Kurien said.
Talking to reporters after earnings, Kurien said: "We are very happy with the results, having said that, there is lot of work to be done because we have to get to secular growth rate of 4-4.5 percent (quarter on quarter) and that's when we say that we are comfortable and in good hope."
On revenue guidance, Wipro said it expects IT services revenues in the January-March quarter of 2013-14 fiscal to be in the range of USD 1.71-1.75 billion.
"Wipro results were almost in line with estimates and the guidance for the March quarter indicates that it has likely returned on the path of sustainable and consistent growth on the back of its account mining initiatives," said Dipen Shah, Head -Private Client Group Research, Kotak Securities.
Wipro added 42 new customers during the third quarter.
IT services segment had 146,402 employees on December 31.
Wipro board declared Rs 3 per share interim dividend.
Among others, listed companies failing to submit financial results within the stipulated time would attract a penalty of Rs 5,000 per day till it is in compliance with the norms. For subsequent non-compliance, the penalty would be Rs 10,000 per day.
In case of non submission of corporate governance compliance report, the fine would be Rs 1,000 per day and for subsequent violations, the penalty would be Rs 2,000 per day.
Besides, a new category 'Z' has been created for trading of shares of non-compliant listed entities wherein trades shall take place in 'trade for trade' basis under 'ZB' series.
Later, the trading in scrips of non-compliant company could be suspended.
"If a listed entity fails to comply with the respective requirements and pay fine the exchange shall suspend trading in the shares of a non-compliant listed entity. The entire shareholding of promoter/prompter group of such non-compliant listed entity shall remain frozen till expiry of three months from the date of revocation of suspension," NSE said.
The Equity Listing Agreement mandates listed companies to make periodic and event based disclosures on the stock exchange platform for any information which are price sensitive in nature and which may have bearing on the performance or operations of the company.
Sebi has asked all stock exchanges, which function as front-end regulators in the securities market, to beef up their monitoring to ensure greater compliance by the listed companies to various provisions of this listing agreement.
The regulator has also directed the stock exchanges to set up a separate monitoring cell with identified personnel to ensure compliance with its new directions.
The move followed concerns that even though listed companies make disclosures to stock exchanges within the time frame stipulated under the Listing Agreement, the contents of the disclosures were not adequate and accurate.
Therefore, investors were unable to take informed investment decisions based on such disclosures.
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