Tuesday 22 October 2013

Wipro net jumps to Rs. 1932 crore in Q2, beats estimates

Wipro net jumps to Rs 1932 crore in Q2, beats estimates

IT major Wipro's September quarter net profit rose a higher than expected 28 per cent year-on-year to Rs. 1,932 crore. Consolidated net sales jumped 19 per cent year-on-year at Rs. 10,992 crore, Wipro said in a statement. IT services revenue crossed Rs. 10,000 crore for the first time in a quarter, Wipro said.

Brokers polled by NDTV had seen Wipro's profit at Rs. 1,859 crore on sales of Rs. 11,133 crore. Rising demand for IT services helped Wipro post strong numbers, analysts said.

Wipro, India's third largest IT outsourcer, said revenues in the key IT services stood at $1,631.1 million, a sequential rise of 2.7 per cent, in line with analyst estimates. That compares with 5.4 per cent, 3.8 per cent and 3.5 per cent q-o-q rise in dollar revenues for TCS, Infosys and HCL Tech, respectively.

Wipro, which gives out a quarterly sales forecast, said dollar revenues are likely to be in the range of $1660 million to $1,690 million in the third quarter. The guidance translates into sequential growth of 1.8 - 3.7 per cent in the December quarter, broadly in line with analyst expectations.

The third quarter is generally a weak quarter for outsourcers because of large number of holidays.

Wipro's operating margins surprised on the upside, up at around 22.5 per cent as against analyst expectations of 20.5 per cent. Wipro's peers TCS, Infosys and HCL Tech had reported margins of 30.2 per cent, 21.9 per cent and 23.8 per cent respectively.

"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," Suresh Senapaty, executive director & chief financial officer of Wipro said in a statement to BSE.

Billionaire Azim Premji-promoted Wipro has been trying to get out of a cycle of slow growth and the company has reported second straight quarter of strong growth.

Wipro's shares had outperformed the broader markets today, ending 1.67 percent higher at 514.9
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