Wipro Q1 net up 1.23 pc at Rs. 1,334.9 crore

Mumbai: The country’s third largest software exporter Wipro today reported a growth of 1.23 per cent in consolidated net profit for the quarter ended June 30, 2011, to Rs. 1,334.9 crore.

Last year, the company had posted a net profit of Rs. 1,318.6 crore for the first quarter, as per international accounting standards.

Net income from sales during the reporting quarter stood at Rs. 8,564 crore, as against Rs. 7,236.4 crore in Q1, FY’11, up 18.34 per cent.

“We are seeing early signs of positive momentum after the re-organisation. Clients continue to focus on optimising operations, creating new products and getting access to newer markets. We will continue to make investments that bring superior value to our clients as they try to win in this market,” Wipro Chairman Azim Premji said in a statement.

IT services, which contributed 75 per cent to the company’s revenues in Q1, FY’12, stood at $ 1,408 million, a sequential increase of 0.5 per cent and a year-on-year increase of 16.9 per cent.

The company said it expects its revenues from the IT services business to be in the range of $ 1,436 million to $ 1,464 million for the second quarter ending September 30, 2011.

The IT services division hired 4,105 new people this quarter, taking its total headcount to 1,26,490 employees as of June 30, 2011. It added 49 new customers during the reporting quarter.

“Our investments in client mining are starting to show results, with four customers contributing more than $ 100 million of revenues. We have maintained our operating margins in the current quarter despite one month impact of salary revision,” Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.

On a standalone basis, the company has reported a net profit of Rs 1,219.3 crore for the quarter, a growth of 9.84 per cent from Rs. 1,110 crore in the same period last year.

The company’s cash and cash equivalents stood at Rs. 5,075.2 crore as of June 30, 2011.

Sales of IT products accounted for 12 per cent of total company revenue in Q1, FY’12, at Rs. 1,006 crore, a growth of 21 per cent year-on-year.

Wipro’s consumer care and lighting business recorded revenues of Rs. 755 crore in Q1, FY’12, an increase of 18 per cent year-on-year and accounting for 9 per cent of Wipro’s total revenues during the quarter.