Country’s third largest software services exporter, Wipro announced a 20 per cent jump in its second quarter consolidated net profit to Rs1,932.1 crore against Rs1,610.6 crore for the second quarter last fiscal. like Infosys and TCS, Wipro posted strong growth on back of currency depreciation and an uptick in client spending.
Company’s consolidated revenues also grew by 19 per cent to Rs11,331.9 crore from Rs9,528 crore in the same quarter of FY 13. Commenting on the results, Wipro Chairman Azim Premji, in a statement said, “There are positive indicators on the global economy. Client confidence is on the uptick and we see it reflected in our results.”
In dollar terms, company’s net profit stood at $309 million while consolidated revenues were at $ 1.76 billion during Q2 FY14. T K Kurien, Chief Executive Officer of the company said, “We achieved a broad based revenue growth across all industry verticals and continue to focus on executing to our strategy.”
Company’s information technology (IT) services revenue rose by 5.9 per cent to $ 1.63 billion on year on year basis (YoY). In rupee terms, IT Services revenues stood at Rs10,068 crore in the quarter.
“Our sustained execution towards increasing operational efficiencies in the business coupled with currency benefits helped offset the impact of wage hikes resulting in strong improvements in operating margins,” Wipro CFO, Suresh Senapaty said.
Talking about the company outlook for IT business for the next quarter, the company said, “We expect revenues from our IT Services business to be in the range of USD 1.66-1.69 billion.” Company added 45 clients taking its total clients to about 1,256. Majority of the new clients came in from the $ 10 million bracket.
Americas was the top revenue generator followed by Europe, Asia-Pacific & other emerging markets and India & Middle East business. In terms of verticals, Finance Solutions led the tally followed by Manufacturing & Hitech, Energy, Natural Resources & Utilities, Retail, Consumer Goods & Transportation, Global Media & Telecom and Healthcare, life Sciences & Services. The firm added, “IT products segment delivered revenue of $ 150 million for the quarter, a Y-o-Y increase of 4 per cent.”