Wipro net up only 2% in Q2

Software major Wipro Limited on Friday reported a modest two per cent increase in net profit at Rs 220 crore for the quarter ended September...

Software major Wipro Limited on Friday reported a modest two per cent increase in net profit at Rs 220 crore for the quarter ended September 2002 compared to the same period of last fiscal, while revenues jumped by 21 per cent at Rs 1,060 crore. Wipro stock fell 1.22 per cent to Rs 1,438.95 on the Bombay Stock Exchange as the results failed to enthuse investors.

Revenue from continuing operations for the six-month period (April-September 2002) was Rs 1,990 crore, an increase of 21 per cent year-on-year, the company said in a statement. Revenue of Wipro Technologies, the company’s global IT business, for the quarter increased 19 per cent year-on-year to Rs 680 crore, it said.

The company said 30 new customers were added during the quarter, including seven that are on the Fortune 1000 list. Gross recruitment at Wipro Technologies for the quarter was 1,270 employees.

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It had 11,298 employees as of September 30, 2002, which is an increase of 753 employees from June 30, 2002. Commenting on the numbers, Wipro chairman Azim Premji said a challenging global business environment has made India-based offshore initiatives a key priority for global corporations. “Wipro is well positioned to take advantage of this opportunity with its wide range of offshore services offerings for enterprise clients and its depth of R&D skills for the technology clients. We should see the momentum in volume growth in the last two quarters,” Premji added.

Premji said Wipro is scouting to acquire companies in the US and Europe that could create shareholder value. “With our first acquisitions, Wipro Spectramind and Wipro Healthcare IT, on track to enhancing shareholder value, we are in dialogue with companies that have a strategic fit and can create shareholder value in terms of prospective acquisitions,” Premji told reporters here.

“We are looking at companies in America and Europe that add strategic value on customers… domain understanding and knowledge… IT consulting skills and companies which we believe synergistically supplement and complement our operations,” he said.

But Premji hastened to add: “In the current environment, we are proceeding cautiously, but with purpose and speed.” Wipro vice-chairman Vivek Paul said pricing pressure was stabilising and the volume of business from the telecom sector was growing, indicating the worst was over for the sector.