IT major Wipro ltd on Tuesday elevated its Chairman Azim Premji's son Rishad to the company Board in an apparent succession planning on a day it posted 2.1 per cent increase in March quarter profits. The country's third largest software services firm posted a net profit of Rs2,286.5 crore in January-March 2015, 2.1 per cent higher than Rs2,239.1 crore a year-ago.
The net profit growth, which is in line with expectations, was helped by robust momentum in infrastructure and healthcare services. The 38-year-old Rishad, who had joined Wipro in June 2007 as a Business Manager, was elevated to the Board position representing "shareholder interest", Wipro CEO TK Kurien said.
Harvard-educated Rishad, the eldest of the two sons of Azim Premji, is at present chief strategy officer and will join the Board from May 1. The younger sibling Tariq is associated with Wipro Foundation. The elevation gives clear indications of succession planning at Wipro, which was founded by Azim Premji, 69, in December, 1945. Azim Premji, who controls close to 74 per cent of Wipro, is ranked 48th on the Forbes rich list with a wealth of $17.1 billion.
"We have always said there is going to be shareholder interest being taken care of by getting somebody on the board and Rishad has really filled that role... He represents share holder interest, he is the valued member of the Wipro management team," Kurein said.
Wipro, which gets a dominant chunk of its revenues from IT services, saw its topline growing by 3.9 per cent to Rs12,171.4 crore in the January-March quarter of 2014-15, from Rs 11,703.6 crore in the year-ago period.
Revenues from IT services business increased six per cent year-on-year to Rs11,240 crore (up 3.2 per cent to $1.77 billion) in the reported quarter. However, Wipro has forecast its IT services revenues for the April-June 2015 period to be in the range of $1.76 billion to $1.79 billion. This is lower by 0.5 per cent to a growth of one per cent from the earnings of January-March 2015 quarter. PNS n NEW DElHI
As the prices of the yellow metal slightly fell on the auspicious day of 'Akshaya Tritiya' on Tuesday, gold jewellery sales rose around 20 per cent in all major cities of the country. In Delhi, gold prices fell by Rs100 to Rs27,100 per 10 grams. Similar was the trend in other cities. Jewellers and bullion traders said retail demand remained robust in most parts of the country as prices have declined by about 10 per cent from last year's 'Akshaya Tritiya', which is considered an auspicious day to buy gold.
India, being the world's largest consumer of gold, imports 800-900 tonns of precious metal annually. Anticipating higher demand during 'Akshaya Tritiya', gold imports jumped to 125 tonnes last month from 60 tonnes in the year-ago. World Gold Council (WGC) India Managing Director Somasundaram PR said, "What we have seen till now in the market, it appears that demand is much better than last year."
In South India, which contributes about 60 per cent of total sales on this day, gold sales remained brisk. In some parts of the country, good demand was seen for diamonds as well due to less price volatility, jewellers said. Delhi-based Khanna Jewellers' Chairman Vijay Khanna said sales are up by 10-15 per cent and are better than last year.
"Jewellery sales are 12 per cent higher on year-to-year basis as prices are down by 10 per cent at Rs26,800 per ten grams on Tuesday as compared with Rs 30,200 per ten grams in the year-ago," Mumbai-based All India Gems and Jewellery Trade Federation Chairman Manish Jain said.
Jain, however, added that sales of gold coins and bars for investment purpose were lower by almost 25-30 per cent. Madras Jewellers and Diamond Merchants Association President Jayantilal Challani said, "The response has been very good and as good as it was last year."
Kerala-based Kalyan Jewellers, which has 66 stores across the country, said it expects a sales growth of 5-7 per cent in each store. "Sales are very good. Seeing the trend from the morning, we expect 5-7 per cent growth in sales in each of our store. But our overall growth in revenue would be 30 per cent as the company has opened 11 new stores," the company's Director Rajesh Kalyanaraman said.
Gold prices in Mumbai, however, declined by Rs45 to Rs26,695 per 10 grams. Similarly in Kolkata, gold fell by Rs105 to Rs27,105 per 10 grams, while in Chennai it declined to Rs27,020 per 10 grams from last close of Rs27,200.