Wipro Q2 net rises nearly 8% to Rs2,085 crore

Wipro, India's third largest software exporter, today reported a 7.90 per cent year-on-year increase in its consolidated net profit for the quarter ended 30 September 2014 at Rs2,085 crore ($337 million). On sequential basis, however, profit was down 0.87 per cent, Wipro said.

Consolidated revenues for the July-September 2014-15 quarter increased by 7.51 per cent to Rs11,816 crore ($1.9 billion).

IT services revenues stood at Rs10,920 crore ($1.79 billion), an increase of 8.5 per cent in rupee terms and a 3 per cent increase in dollar terms.

Wipro expects revenues from IT services business to be in the range of $1.81 billion to $1.84 billion.

''Business leaders in the US continue to exhibit increased confidence on growth prospects. Clients are increasingly looking to drive business value from their technology investments. We are seeing positive sentiment in India with the confidence that the government is focused on driving an agenda of growth,'' Azim Premji, chairman of Wipro, said.

''While the industry landscape is still undergoing change, we see multiple opportunity spaces for growth and gaining market share. We continue to execute to our stated strategy of leveraging platforms for non-linear growth and creating differentiated solutions around the new technology paradigms,'' said T K Kurien, executive director and CEO of Wipro.

During the quarter, Wipro said, the benefits of rupee depreciation were negated by the US Dollar's appreciation against other major currencies.

The company said it continued to drive productivity and improve operating levers even as salary hike had some effect on operating margin for the quarter.

''In Q2, we continued to build on our leadership position in infrastructure services and continued the momentum of deal wins. We continued to drive productivity and improving operating levers even as the effect of salary hike on this quarter's operating margin was on expected lines,'' Suresh Senapaty, executive director and CFO of Wipro, said.