Wipro third quarter net profit up 9%

Buoyed by the broad-based growth across business verticals, Wipro Ltd. registered a growth of 9 per cent in its net profit at Rs.2,192.80 crore for the third quarter ended December 31, 2014, compared to the same period last year. Total revenue has risen by six per cent to Rs.11,929 crore. On a sequential basis the net profit was up five per cent.

In dollar terms, IT services revenue was at $1,795.4 million, a sequential growth of 1.3 per cent. On constant currency IT services, revenue grew 3.7 per cent sequentially to $1836.2. For the October-December period, the company had given a guidance of $1.808 million to $1,842 million. Commenting on the company’s performance, T. K. Kurien, Executive Director and CEO, said: “Our IT services grew sequentially by 3.7 per cent in constant currency, towards the upper end of our guidance. Overall, the demand environment continues to hold steady with opportunities across key markets in North America and Europe. We see a recovery in demand in the retail and manufacturing sectors.”

The healthcare, life sciences and services business grew 7.5 per cent sequentially on a constant currency basis.

During the quarter under review, IT services segment made a net addition of 2,569 employees taking the total headcount to 1,56,866 as of December 31, 2014. Wipro added 44 new clients during the third quarter. The annualised attrition declined from 16.9 per cent to 16.4 per cent. The company declared an interim dividend of Rs.5 per share of Rs.2 each.

Wipro on Friday announced the appointment of Jatin Dalal as the Chief Operating Officer of the company. Mr. Dalal, who is presently the Senior Vice-President Finance of Wipro will replace Suresh C. Senapaty, who will retire on attaining the age of superannuation on March 31, 2015. According to the company, Mr. Senapaty will retire as the Chief Financial Officer and Executive Director of the company’s board. Mr Senapaty will continue to serve on the Board of Wipro Enterprises and Wipro GE healthcare. Mr. Senapaty and Mr. Dalal will work together through quarter ending March 31, 2015 to ensure a smooth transition.