Wipro Q2 net up 1.24 pc at Rs 1,300.9 cr

Wipro Q2 net up 1.24 pc at Rs 1,300.9 cr Bangalore: Software exporter Wipro Monday said its bottomline grew by 1.24 percent to Rs 1,300.9 crore on the back of robust IT business in the quarter ended September 30, 2011, and gave a forecast for strong performance in the third quarter.
    
Last year, the company posted a net profit of Rs 1,284.9 crore for the second quarter, as per international accounting standards.

IT services, which contributed 75 percent to the company's revenues in Q2, FY'12, stood at USD 1,472 million, a sequential increase of 4.6 percent and a year-on-year rise of 15.7 percent.

Wipro Chairman Azim Premji said though the macroeconomic sentiment continues to remain uncertain, the company has "seen growth momentum build up in its IT business, with healthy volume growth".

"Our focused investment strategy will get the business to a higher growth trajectory," he added.

Reacting to the results, shares of the company shot up by more than 3 percent in early trade on the bourses on Monday.

Shares of the company were trading at Rs 381.20 apiece, up 2.25 percent at 1200 hours.

"The uptrend in the counter was largely owing to the fact that the company has come out with a good set of numbers after many quarters. The September quarter numbers are in line with market expectations," Ashika Stock Brokers Research Head Paras Bothra said.

Wipro has forecast its revenues from the IT services business to be in the range of USD 1,500 million to USD 1,530 million in the third quarter, ending December 31, 2011.

Net income from sales during the reporting quarter stood at Rs 9,094.5 crore, as against Rs 7,730.5 crore in Q2, FY'11, translating into a 17.64 percent increase.

The IT services division hired 5,240 new people in the second quarter, taking its total headcount to 1,31,730 employees as of September 30, 2011. It added 44 new customers during the reporting quarter.

"We are continuing to see incremental progress in our client mining strategy, with five customers contributing more than USD 100 million of revenues and our top customer hitting a revenue run rate upward of USD 200 million," Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.

Operating margins were impacted during the quarter salary increases, he added.

On a standalone basis, the company reported a net profit of Rs 1,050.6 crore for the quarter, a decline of 10.36 percent from Rs 1,172.1 crore in the same period last year.

Sales of IT products accounted for 11 percent of total company revenue in Q2, FY'12, at Rs 1,000 crore, a decline of 6 percent year-on-year.
    
Wipro's consumer care and lighting business recorded revenues of Rs 800 crore in Q2, FY'12, an increase of 20 percent y-o-y, accounting for 9 percent of Wipro's total revenues during the quarter.

PTI