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Wipro's quarterly revenue, profits up

Wipro's quarterly revenue, profits up

Wipro's revenue, profit up, but operating margin in its outsourcing business affected by strong rupee.

India's third largest outsourcer, Wipro, Thursday reported growth in revenue and profit, although like other Indian outsourcers, it too was affected by the appreciation of the Indian rupee against the U.S. dollar.

The company posted total revenue of Indian rupees 41.83 billion (AUD$1.184 billion) in the quarter ended June 30, up 34 percent over revenue in the same period last year. Net revenue rupees 7.1 billion, up by 16 percent for the same period a year ago.

Wipro, of Bangalore, has both a domestic and export business. Its export-oriented outsourcing business, called Global IT Services and Products, posted revenue of rupees 29.4 billion, up by 20 percent over the same period last year. The company's operating margin for this business was however down from the same quarter last year because of the strong rupee.

The results are based on U.S. generally accepted accounting principles (GAAP), the company said.

The company's export business had 72,137 employees as of June 30, which included 53,073 employees in its IT services and products business, and 19,064 employees in the BPO (business process outsourcing) services business. The company added 4,319 staff during the quarter of which 2,719 employees were added in its IT services and products business and 1,600 employees in its BPO business.

During the quarter, some of the company's services lines like technology infrastructure services and software package implementation grew by over 50 percent year-on-year, while its BPO and testing services grew by over 40 percent year-on-year.

The company's export business accounted for 70 percent of total revenue and 91 percent of operating income for the quarter. Wipro does not report profits separately for this business, which added 39 new outsourcing clients in the quarter.


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