Wipro Ltd, the parent company of Wipro Technologies, India’s third largest exporter of software and services, has experienced a surge in profitability during its second quarter.
For the three-month period ended September 30, Bangalore-based Wipro reported a net profit of INR 3.84 billion ($83.7 million), up 67% on 2003, on revenue that grew 47% to INR 19.8 billion ($432.2 million).
Wipro Technologies, the global IT services and products division reported earnings before interest and tax of INR 4 billion ($88 million), up 90% on 2003, on revenue that grew 45% to INR 15 billion ($326 million). Wipro Infotech meanwhile, the India and Asia-Pac IT services and products division, reported an EBIT of INR 225 million ($5 million), up 72% on 2003, on revenue that grew 60% to INR 3.1 billion ($67 million). Consumer care and lighting and other services accounted for the remaining INR 1.77 billion ($38.9 million) in revenue for the period.
During the quarter Wipro signed 34 new clients including three for its business process outsourcing (BPO) division Wipro Spectramind, which it accounts for as IT Enabled Services. VP Vivek Paul said, After a couple of subdued quarters, our business process outsourcing business rebounded strongly with a sequential revenue growth of nearly 20%.
For the quarter ending December 2004, Wipro expects revenue from its Global IT services business to be $347 million. During the quarter, the company grew headcount by more than 5,546 people, of which some 3,282 were in IT services, and 2,264 were in BPO. At the end of the quarter Wipro had 37,063 employees in the IT services business.