Bangalore, Jan 20: Meeting street expectations, IT major Wipro today reported a 10 per cent rise in the third quarter consolidated net profit at Rs 1,456 crore, aided by a weak Rupee and steady demand.
Revenues of the Bangalore-headquartered, New York Stock Exhange-listed company jumped 28 per cent year-on-year to Rs 9,997 crore for three months ended December 31, 2011.
“We continue to execute on our strategy and propel the business towards a higher growth trajectory”, Chairman Azim Premji told a news conference. “The overall macroeconomic sentiments continue to be uncertain and we are monitoring it closely”.
For the fourth quarter ending March 31, Wipro expects revenues from IT services business to be in the range of USD 1,520 million to USD 1,550 million, a sequential growth of one per cent to three per cent.
The company, the country's third largest software services exporter, declared a dividend of Rs two per share.
IT services business, which contributed 76 per cent of the total revenue during the reporting quarter, added 39 new clients and 5004 employees.
The company's IT services revenue grew by 12 per cent to USD 1,505 million.
IT products, and consumer care and lighting business which contribute nine per cent each to the total revenue, grew by two per cent and 26 per cent to Rs 900 crore and Rs 879 crore, respectively.
Chief Financial Officer Suresh Senapaty said: “Our client mining strategy continues to show progress with six customers contributing more than USD 100 million of revenues. We have improved operating margins through improved revenue productivity and currency benefits”.
Voluntary attrition rate dropped to 14.2 per cent— lowest in eight quarters—a dip of nine per cent in two quarters, he added.
CEO of IT business T K Kurien said most customers polled by the company suggested that the IT budget this year is expected to be flat to marginally negative.
Premji said uncertainties in the macroeconomic environment has not affected IT in proportion to the uncertainties that “you see all around us”.
Customers are continuing to make decisions - except in the investment banking space where “some amount of budget cuts are there and delays are taking place”.
Kurien added: “We saw broad based growth with five of the six verticals growing upwards of four per cent in constant currency. Revenues in costant currency exceeded the guidance range”.