IT major Wipro’s scrip rose over 3 per cent today after the company reported a 23.8 per cent jump in consolidated net profit for the second quarter ended September 30, 2012 and its move to demerge the non-IT businesses into a separate company.

Following the robust earnings, Wipro share gained 3.19 per cent to Rs 372.95 on the BSE. On the NSE, the scrip moved up by 3.23 per cent to Rs 372.95.

“Results were in-line with street expectations, but the stock is moving up on the back of demerger of its non-IT businesses,” CNI Research CMD Kishor Ostwal said.

The country’s third largest software firm had said yesterday that it will demerge non-IT businesses like Consumer Care & Lighting into a new company, a move which will allow it to focus exclusively on information technology.

Wipro today reported a jump of 23.8 per cent in consolidated net profit to Rs 1,610.6 crore for the second quarter of 2012-13 fiscal.

Last year, the software major had posted a net profit of Rs 1,300.90 crore in the second quarter, as per international accounting standards.

“We expect revenues from our IT Services business to be in the range of $1,560 million to $1,590 million for the quarter ending December 31, 2012,” Wipro said.

“Wipro’s 2Q FY’13 results are largely in-line with estimates. Wipro’s guidance for IT services for 3Q FY’13 looks decent after continuous disappointments since last couple of quarters in terms of guidance,” Angel Broking said in a report.

Total income from operations during the reporting quarter was Rs 10,620.30 crore against Rs 9,064.5 crore in the July-September period of last fiscal, up 17.16 per cent.

(This article was published on November 2, 2012)
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