The Hindu Business Line : Wipro Q1 net profit rises 45 pc

A broad-based growth across all its businesses helped Wipro Ltd to post better-than-expected growth of 45 per cent in net profits and 39 per cent in revenues for the June quarter this year.

Wipro reported a net profit of Rs 620 crore on total revenue of Rs 3,142.5 crore for quarter-ended June compared to a net of Rs 428 crore on revenue of Rs 2,261.9 crore in corresponding quarter last year. Sequentially, the net profits and revenues grew by 0.33 per cent and one per cent respectively. Wipro added 62 new clients during the quarter.

Global IT revenue up

Global IT revenues grew 42 per cent year-on-year accounting for 78 per cent of Wipro's total revenues and stood at $539.3 million (Rs 2,451 crore), exceeding the company's guidance of $533 million. Wipro said its Global IT revenues would grow in the second quarter but cautioned that margins could come under further pressure due to a planned salary hike and charges relating to restricted stock options.

Global IT revenues are projected to touch $577 million in the September quarter, a sequential growth of 6.9 per cent. Reacting to the earnings and forecast, the Wipro stock fell by 5.5 per cent on the BSE to close at Rs 458.30 after touching an intra-day high of Rs 498.

Despite a decent Q1 performance, the Q2 earnings outlook for Global IT business looks a "bit disappointing," analysts said. Commenting on Q1 performance, the Chairman, Mr Azim Premji, said "the results for the quarter were quite satisfying. We enhanced our strategic investments to sustain long-term growth".