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Wipro Q2 revenues up 35 p.c.
Good business will continue to come from the U.S. market : Premji
Wipro has reported a 35 percent year on year revenues for the second quarter ended September 30, 2007 to Rs. 4,785 crore. The net profit stood at Rs. 824 crore against Rs. 700 crore in the corresponding quarter last year, an increase of 18 percent.
The company has announced an interim dividend of Rs. 2per share. Wipro’s Global IT services and products revenue grew only 9.7 percent sequentially to $ 796.5 million.
Wipro’s Chairman Azim Premji told reporters “Several large overseas deals were won during the quarter, including one with a total contact value of $ 275 million and another for $160 million over multiple years. Our partnership with SAP and acquisition of the U.S. IT services company, Infocrossing , whose revenues added to consolidated revenues from August, added up to global revenues of $ 796.5 million, ahead of our guidance of $777 million for the quarter”.
High-growth sectors included finance solutions, telecom service providers, testing and BPO, with Europe and Japan recording 15and 26 percent consequential growth, overcoming the fall in revenue from dollar rate fluctuation, ‘which affected our margins by almost Rs. 1,500 crore’, Chief Financial Officer, Suresh Senapaty was expected to be maintained during the second half of the year with a good offshore mix from cost-effective overseas locations in Europe, Mexico, China and Brazil, and a facility in Atlanta in the U.S., where local talent was being recruited straight from the campuses.
The agreement with Nokia Siemens Networks concluded earlier this month would provide access to engineers in Germany.
Responding to questions, Mr. Pramji remarked, “While the impact of the U.S. sub prime was felt, only one percent of our U.S. clients are directly involved in mortgage business; other clients are investment bankers less affected by the crisis.
Despite the current slowdown, I personally feel good business will continue to come from the U.S. market Our acquisition of a Singapore based electric products company should improve our penetration of the Far Eastern market”.