Indian IT services firm reports total revenues were $1.39B for its first fiscal quarter, an increase of 43% over the same period last year

July 18, 2008

2 Min Read

BANGALORE, India and EAST BRUNSWICK, N.J. -- Wipro Limited (NYSE:WIT) today announced financial results under US GAAP for its first fiscal quarter ended June 30, 2008.

Highlights of the Results:

  • Total Revenues were Rs. 59.62 billion ($1.39 billion1), representing an increase of 43% over the same period last year.

  • Net Income was Rs. 8.14 billion ($190 million1) on a GAAP basis, representing an increase of 15% over the same period last year.

  • Non-GAAP Adjusted Net income (excluding impact of currency translation on foreign currency loan, related cross currency swap and India fringe benefit tax) was Rs. 8.85 billion ($206 million1), representing an increase of 25% over the same period last year.

  • IT Services Revenues were Rs. 43.93 billion ($1023 million1), representing an increase of 40% over the same period last year.

  • IT Services Earnings Before Interest and Tax (EBIT) was Rs. 8.82 billion ($205 million1), representing an increase of 35% over the same period last year.

  • IT Services added 31 new clients in the quarter.

  • IT Products recorded a 53% growth in Revenues over the same period last year.

  • Consumer Care and Lighting Revenue grew 114% over the same period last year and EBIT grew 98%.



Performance for the Quarter ended June 30, 2008 and Outlook for our Quarter ending September 30, 2008

Azim Premji, Chairman of Wipro, commenting on the results said - “We have had another satisfying quarter. Revenues from our IT Services were $1,067 million for the quarter, ahead of our guidance of $1,060 million. In the backdrop of significant economic uncertainty, our Financial Services and Retail businesses demonstrated their resilience. We had strong growth in our differentiated Service lines like Testing, TIS and BPO. Our strategy of focusing on MEGA/GAMA accounts is delivering results with top customers growing ahead of company average. We improved on several of operational parameters during the quarter.

Given the environment, we remain cautious in the near-term. Looking ahead, for the quarter ending September 2008, we expect our Revenue from our IT Services business to be approximately $1089 million.” Suresh Senapaty, Chief Financial Officer of Wipro, said – “During the quarter ended June 2008, we were able to sustain margins in spite of Restricted Stock Units grants. Rate Realization and Utilization improved sequentially by 300 basis points and 50 basis points respectively. We have won 7 multi-year multi-million dollar deals and added 31 new customers during the quarter. We added another customer to our $100 million customer list.”

Wipro Ltd. (NYSE: WIT)

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