01-22-2004, 04:53 AM
<b>WIPRO SEES RECORD PROFIT AS TELECOM RECOVERS</b>
Wipro, India's third-largest software services company, saw record net profit in the third quarter, having signed up 24 new clients in the October to December period to lift sales by 44 per cent to Rs 15.6bn ($343m).
Azim Premji, chairman, said,"sustained volume growth coupled with stable pricing environment and operational improvements resulted in Wipro posting its highest ever quarterly profit after tax."
The Bangalore-based company, listed both in New York and Mumbai, posted net quarterly profit of Rs 2.66bn under US GAAP accounting rules. Clients based in the US contributed 54 per cent of its total revenue last year, putting pressure on profit margins as the rupee gained 5.2 per cent against the dollar in 2003. Political pressure has also seen a number of major US clients, such as Lehman Brother, bringing previously outsourced work back to the US.
But a revival in the global telecom sector, Wipro's mainstay, brought an increase in the number of software design and implementation projects outsourced to the company during the period, following a three-year downturn.
[b]Its shares in Mumbai rose 1.6 per cent to Rs1,742 by midday following its results announcement. Infosys, its larger competitor, had also announced strong growth in its third quarter to December, income rising 35 per cent to $70.5m.
Cheers
Wipro, India's third-largest software services company, saw record net profit in the third quarter, having signed up 24 new clients in the October to December period to lift sales by 44 per cent to Rs 15.6bn ($343m).
Azim Premji, chairman, said,"sustained volume growth coupled with stable pricing environment and operational improvements resulted in Wipro posting its highest ever quarterly profit after tax."
The Bangalore-based company, listed both in New York and Mumbai, posted net quarterly profit of Rs 2.66bn under US GAAP accounting rules. Clients based in the US contributed 54 per cent of its total revenue last year, putting pressure on profit margins as the rupee gained 5.2 per cent against the dollar in 2003. Political pressure has also seen a number of major US clients, such as Lehman Brother, bringing previously outsourced work back to the US.
But a revival in the global telecom sector, Wipro's mainstay, brought an increase in the number of software design and implementation projects outsourced to the company during the period, following a three-year downturn.
[b]Its shares in Mumbai rose 1.6 per cent to Rs1,742 by midday following its results announcement. Infosys, its larger competitor, had also announced strong growth in its third quarter to December, income rising 35 per cent to $70.5m.
Cheers