Tech party: Wipro Q4 net up 34

Fiscal profit up 27 to Rs 2,067 cr, announces a renewed focus on MA

Infotech and consumer care giant Wipro posted a net profit jump of 27 per cent for FY 2005-06 and a 34 per cent jump in its fourth-quarter net profit, more than meeting analyst expectations. The country8217;s third-largest software services provider also announced a renewed focus on acquisitions and expansion.

The company has clocked a net profit of Rs 2,067 crore for 2005-06 from a total income of Rs 10,626 crore, itself a 30 per cent increase over the previous year. Wipro has forecast its IT services revenue will rise 34 per cent to 533 million Rs 2,345 crore in its fiscal first quarter to end-June, from 397.3 million a year ago and has recommended a cash dividend of Rs 5 per share.

The company8217;s revenues from the IT business alone crossed 2 billion over the year and global IT revenues for 2005-06 growing 33 per cent, while domestic business and West Asia and Asia Pacific revenues rose 22 per cent.

Wipro Chairman Azim Premji said the company is now betting with confidence on last year8217;s strategy of acquisitions abroad to amass intellectual property and improve consultancy resources. Premji said that the acquisitions have proved worthwhile and will be pursued more aggressively in the future.

8216;8216;Our approach towards acquisitions is not just to increase numbers8230; it is to build a certain geographical footprint, particularly in Europe, where we think there is a huge potential for future growth,8217;8217; Premji said.

Wipro plans to open new centres within India as it diversifies to smaller cities where it can recruit aggressively.

A new centre announced previously in Romania will also start functioning in May. Company executives said that the BPO and IT Development Centre there will also be kick-started with 150 to 200 seats. Wipro will also lay renewed focus on bagging large total outsourcing contracts both within India and outside, Premji said.

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8216;8216;All Wipro8217;s businesses are in the sweet spot of strong growth. We have the gameplan to leverage the opportunities and realise our growth potential.8217;8217;

No reservations: Wipro chairman Azim Premji said his firm would recruit people based only on merit. 8216;8216;We compete with global companies. We are primarily in the service business in terms of the mix of our consolidated revenues8217;8217;, he said, adding, 8216;8216;Service business is highly people-dependent. People make you the company successful or the people make you less successful.8217;8217;