CIMdata PLM Industry Summary Online Archive
26 JUL 2013
FINANCIAL NEWS
Wipro Records 11% Year over Year Growth in Net Income
Wipro Limited today announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2013.
Highlights of the Results:
Results for the Quarter ended June 30, 2013:
Revenues from continuing operations were rupees 97.35 billion ($1.64 billion1), an increase of 5% Year over Year. Net Income from continuing operations was rupees 16.23 billion ($273 million1), an increase of 11% Year over Year.
Non-GAAP Adjusted Net Income from continuing operations was rupees 16.23 billion ($273 million1), an increase of 11% Year over Year.
Non-GAAP constant currency IT Services Revenue in dollar terms was $1,604.1 million, within our guidance range of $1,575 million to $1,610 million.
IT Services Revenue was $1,588.3 million, a sequential increase of 0.2% and Year over Year increase of 4.9%. IT Services Earnings Before Interest and Tax (EBIT) was rupees 17.85 billion ($300 million1), an increase of 2% Year over Year.
Operating Income to Revenue for IT Services was 20.0% for the quarter.
Performance for the quarter ended June 30, 2013 Azim Premji, Chairman of Wipro, commenting on the results said – "We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US."
T K Kurien, Executive Director & Chief Executive Officer of Wipro, said – "We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organizational agility."
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter."
IT Services The IT Services segment had 147,281 employees as of June 30, 2013, an increase of 1,469 people in the quarter. Wipro added 28 new customers for the quarter.
Wipro has won a multi-year, multi-million dollar contract with an APAC-based telecom service provider, to provide big data based analytics solutions to enable business transformation. Wipro, as the lead system integrator for this engagement, will transform business processes to improve end-customer experience, reduce churn and enhance decision making capabilities of the operator by providing meaningful insights into the consumer.
Wipro has won a major, multi-year deal from a leading provider of analytics solutions to Healthcare, CPG and Retail industries. Wipro will manage their data centers across the US and Europe on a cloud based hosted model, powering a responsive and reliable infrastructure. This backbone will be the harbinger of a data-motive Hadoop environment and the launch of their advanced analytics business.
Wipro has won a large multi-year deal in the infrastructure management space from a large global bank. As a part of the bank's overall infrastructure services transformation initiative, Wipro will help the bank improve service levels and take out significant costs by rationalizing its infrastructure landscape. The service will be provided in a managed services model spanning 3 continents and will cover a gamut of services across multiple towers.
Wipro has won a large multi-year engagement with one of UK's largest providers of life and general insurance. This includes the renewal of existing work as well as addition of new scope of work. Wipro will continue to provide application development and maintenance services across all their Life & Pension business platforms and will take it to the next level of maturity by converting these to managed services for application support and outcome based delivery.
Wipro has secured a deal from Saudi Arabian Airlines which includes IT Infrastructure and Application Managed Services, Infrastructure Upgrades and Enhancements, Sharepoint application development as well as strategic transformational consulting engagement.
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