Wipro Q3 net up 9.6%; board proposes Rs 2 interim

| Updated on: Jan 21, 2011
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IT major Wipro has reported a 9.6 per cent increase in its consolidated net profit at Rs 1,318.8 crore for the third quarter ended December 31, 2010, against Rs 1,203.2 crore in the corresponding quarter of the previous fiscal.

In a filing to the Bombay Stock Exchange, the company said that for the fourth quarter ending March 31, 2011, it expects revenues from IT services business to be in the range of $1,384-1,411 million, a sequential increase of 3 to 5 per cent.

“We announced the appointment of T.K. Kurien as the CEO of IT Business and Executive Director, Wipro, with effect from February 1, 2011. The Joint CEO structure was one of the key factors that successfully helped us navigate the worst economic crisis of our times,” the Chairman, Mr Azim Premji, said.

Net income from sales rose to Rs 7,829.3 crore during Q3 of 2010-11 fiscal against Rs 6,977.4 crore in Q3 of 2009-10 fiscal.

The board of directors has proposed an interim dividend of Rs 2 per equity share on the face value of Rs 2 each to its shareholders.

IT services business, which contributed 76 per cent of the total revenue during the reporting quarter, added 36 new clients. IT services revenue grew by 15 per cent to Rs 7,829 crore over the same period last year.

“The operating margins for IT services business were flat, despite lower working days and drop in utilisation,” the Wipro Executive Director & Chief Financial Officer, Mr Suresh Senapaty, said.

The company added 3,591 net employees during the quarter taking the total headcount to 1.19 lakh employees. It had cash and cash equivalents to the tune of Rs 6,487.8 crore as on December 31, 2010.

On a standalone basis, Wipro posted a marginal dip in net profit at Rs 1,223.7 crore in Q3 FY’11 compared with Rs 1,231.2 crore in Q3 FY’10.

Published on January 21, 2011

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