Net income increases 9%
IT services provider Wipro has reported a 9% increase in net income to INR 8.98 billion ($185m) for the third quarter, compared to INR 8.26 billion ($168.5m) in the year-ago quarter, on revenue up 25% at INR 65.39 billion ($1.35 billion).
Operating income during the quarter grew 19% to INR 10.62 billion ($219m), while diluted EPS grew 9% to INR 6.17 ($0.13). It added 31 new customers and won 4 multi-year multimillion-dollar deals.
The India-based company said IT services revenue grew 30% to INR 50.64 billion ($1.04 billion), while product revenue grew 26% to INR 14.92 billion ($307m). Consumer care and lighting revenue grew 20% to INR 4.86 billion ($100m).
During the quarter, the company completed the acquisition of Citi Technology Services for $1.05 billion. It also announced plans to open a BPO delivery center in Curitiba, Brazil, to service its new client, AmBev. In Europe, it strengthened its presence by opening an office in Maia, Portugal.
Suresh Senapaty, executive director and CFO at Wipro, said: Our price realization improved sequentially in constant currency through higher productivity, while absorbing impact of lower working days during the quarter. We improved our offshore mix and significantly increased our mix of revenues from fixed price projects. We made a one-time provision in respect of receivables of a large customer which impacted our margins by 60 basis points. The impact of salary increase and drop in utilization were made up by benefits from currency and other operational parameters.
Looking ahead, for the fourth quarter, the company expects IT Services revenue including revenue from the acquisition of Citi Technology Services to be approximately $1.04 billion.