Wipro Q1 net rises 31,beats f8217;cast

Wipro posted a higher-than-expected 31 percent rise in quarterly profit...

India8217;s infotech major Wipro posted a higher-than-expected 31 percent rise in quarterly profit as global demand for outsourcing improved and the No. 3 Indian software firm said it was seeing strong business environment.

Bangalore-based Wipro expects revenue from its IT services business in July-September to rise 4.1-6.1 percent from the June quarter to 1.25 billion-1.28 billion,the company said.

We are seeing strong demand environment across our industry verticals despite macro challenges,billionaire Chairman Azim Premji said in a statement.

Last week,sector leader Tata Consultancy Services beat market estimates and said it was seeing strong demand for outsourcing..

No. 2 Infosys,however,posted a surprise fall in quarterly profit and said a weak European economy could curb new orders and dampen a recovery for India8217;s outsourcing sector..

Wipro,majority-owned by billionaire Azim Premji who mostly travels economy class,added net 4,854 employees in the June quarter.

Rising outsourcing demand has seen Indian IT firms boosting hiring and raising salaries as they battle intensifying competition from global rivals such as IBM and Accenture.

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However,a debt crisis in Europe,the second-biggest market for Indian software firms,as well as currency fluctuations are key worries for the country8217;s 60 billion outsourcing sector.

Research firm Forrester said in a report this month that Europe8217;s volatile economic situation and uncertainty about corporate IT budgets would result in possible delays or cancellations of some outsourcing projects.

Wipro,which develops software applications,integrates IT systems and manages call centres,said net profit for the June quarter rose to 13.19 billion rupees 280 million under international accounting standards from 10.10 billion.

A Reuters poll of brokerages had forecast a net profit of 12 billion rupees for Wipro,which counts Citigroup,Cisco and Credit Suisse among its leading clients. 1=47.1 rupees

Story in Indian rupees

Wipro Q1 net jumps 30.5 pc to Rs 1,318.6 cr

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IT major Wipro today reported a growth of 30.5 per cent in its net profit at Rs 1,318.6 crore for the first quarter ended June 30,over the corresponding quarter last year.

The company had posted a net profit of Rs 1,010.4 crore during the April-June quarter a year ago,Wipro said in a filing to the Bombay Stock Exchange.

8220;We are seeing strong demand environment across over industry verticals despite macro challenges. We added the highest number of billable employees ever,in this quarter,8221; Wipro Chairman Azim Premji said.

Wipro8217;s net income from sales rose by 15.85 per cent to Rs7,236.4 crore for the first quarter of FY 2010-11,from Rs 6,246.2 crore in the same quarter previous fiscal.

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The company added 4,854 employees in this quarter taking the total headcount to 1.12 lakhs.

For the second quarter ending September 30,2010,it expects revenues from IT services business to be in the range of USD 1,253 -1,277 million,the filing added.

Boosted by the results,shares of Wipro touched a month high of Rs 433,up 4.18 per cent on BSE in the early trade.

Wipro outlook: Stable pricing seen

Wipro Ltd,India8217;s No. 3 software firm,expects a stable pricing environment and hopes to maintain its margins in the next 4-6 quarters,chief financial officer Suresh Senapaty told reporters on Friday.

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Earlier Wipro posted a higher-than-expected 31 percent rise in quarterly profit as global demand for outsourcing improved. 1=47.1 rupees