The Hindu Business Line : Wipro Q1 net rises 73 pc at Rs 357 cr

WIPRO Ltd surpassed expectations with a 11.3 per cent sequential net profit growth at Rs 357 crore even as its revenue slid marginally to Rs 1,769 crore. Net profit surged 73 per cent on a year-on-year basis while revenue was up 48 per cent from a year ago.

The company, which beat its own guidance for the quarter ended June, said that revenues for global IT services are likely to grow by 8.16 per cent to $318 million for the September quarter.

The Wipro scrip ended marginally up to close at Rs 529.25, off a three-week intra-day high of Rs 546.9, on the BSE.

The company added 35 new clients in the quarter under review, including 13 in R&D, 19 in enterprise services and three new clients in the IT-enabled services division, Wipro Spectramind. It added 3,015 employees to its rolls even as attrition rate in its software business was close to 17 per cent.

Revenue for global IT services and products grew by 45 per cent year on year to Rs 1,343.6 crore. While R&D contributed 33 per cent, enterprise services accounted for 57 per cent. The remaining 10 per cent came form BPO operations. "We had a subdued quarter," said the CEO of Wipro Spectramind, Mr Raman Roy. The sequential flattish growth was due to certain one-time projects coming to an end and some customers reworking their processes, he added.

However, he was bullish on the growth of the BPO arm and expects to report growth rate at par with "the industry average if not more" in the subsequent quarters. Wipro Spectramind reported price realisation close to $13 per hour per person for the quarter.

It has effected a 15-18 per cent wage hike to check the steep attrition rate and is confident of bringing down the attrition numbers to some extent. The company reported 20 per cent attrition in the quarter ended June, of which six per cent was among trainees and 14 per cent among billable employees. Wipro Infotech reported revenue of Rs 269.7 crore for the quarter ended June, up 68 per cent year on year.

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