Wipro Net Profit Surge 19% In Second Quarter

Author: Anurag Bhullar

Wipro, despite the global finance turmoil reported outstanding results for the second quarter ended on 30 September, 2008. Driving on great operational efficiencies it posted a net profit of Rs 978 crore, a straight 19 percent upsurge from the corresponding second quarter of the last fiscal year. Revenues of the company also soared 36 percent to Rs 6,507 crore. The IT services business division of Wipro reported a revenue growth of 29 percent to $110 million and the profit before tax also moved up by 30 percent to Rs 996 crore.

“The financial performance of the second quarter truly reflects the ability of the company to deliver operational efficiencies. The mix of Fixed Price Project and Rate Realization has improved consecutively by 100 and 200 basis points. The continued emphasis on the operational front has helped the company to improve the margins in the IT services business,” according to a senior official of Wipro.
	But the major concern for Wipro at this moment is regarding the guidance issues for its IT services division. According to Azim Premji (Chairman of Wipro), the global outlook has darkened over the past few months and the company will consider a cautious approach to encounter the challenges. He expects the revenues of the IT services business to grow at a pace of only 1 percent to approximately $121 million for comming years.