Wipro Q2 net up 1.24% at Rs 1,300 cr

Software exporter Wipro on Monday reported a growth of 1.24 per cent in consolidated net profit to Rs 1,300.9 crore (Rs 13 billion) for the quarter ended September 30, 2011.

Last year, the company had posted a net profit of Rs 1,284.9 crore (Rs 12.84 billion) for the second quarter, as per international accounting standards.

Net income from sales during the reporting quarter stood at Rs 9,094.5 crore (Rs 90.94 billion), as against Rs 7,730.5 crore (Rs 77.3 billion) in Q2, FY'11, translating into a 17.64 per cent increase.

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"Macroeconomic sentiments continue to remain uncertain.

"We have seen growth momentum build up in our IT business, with

healthy volume growth. Our focused investment strategy will get the business to a higher growth trajectory," Wipro chairman Azim Premji said.

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

The company said it expects its revenues from the IT services business to be in the range of $1,500 million to $1,530 million for the third quarter ending December 31, 2011.

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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 $100 million of revenues and our top customer hitting

a revenue run rate upward of $200 million," Wipro executive director and chief financial officer Suresh Senapaty said.

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

On a standalone basis, the company reported a net profit of Rs 1,050.6 crore (Rs 10.5 billion) for the quarter, a decline of 10.36 per cent from Rs 1,172.1 crore (Rs 11.72 billion) in the same period last year.

Sales of IT products accounted for 11 per cent of total company revenue in Q2, FY'12, at Rs 1,000 crore (Rs 10 billion), a decline of 6 per cent year-on-year.

Wipro's consumer care and lighting business recorded revenues of Rs 800 crore (Rs 8 billion) in Q2, FY'12, an increase of 20 per cent y-o-y, accounting for 9 per cent of Wipro's total revenues during the quarter.