Wipro expects its revenues from IT services business to be in the range of $1.585 billion to $1.625 billion for the quarter ended 31 March 2013

Mumbai: Wipro, the country’s third largest software services firm, today reported 18% rise in its consolidated net profit to Rs1,716.4 crore for the third quarter ended 31 December 2012, reports PTI.

The Bangalore-based company had posted a net profit of Rs1,456.4 crore in the year-ago period, it said in a filing to the BSE.

Consolidated total income of the IT major was up by 10% to Rs10,989.1 crore for the October-December quarter of the current fiscal against Rs9,965.1 crore in the same period of 2011-12 fiscal.

IT services revenue, which accounted for 78% of its revenues, stood at $1.577 billion in the reporting quarter, up 4.8% year-on-year and 2.4% cent compared to July-September 2012 quarter. In rupee terms, it stood at Rs8,602 crore.

“In constant currency, IT services revenue in dollar terms was $1.571 billion, within our guidance range of $1.560 billion to $1.590 billion,” Wipro said in a statement.

“While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity,” Wipro chairman Azim Premji said.

Wipro expects its revenues from IT services business to be in the range of $1.585 billion to $1.625 billion for the quarter ended 31 March 2013.

“We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition.

“We continue to make investments in our go to market organisation and technology themes to be a strategic partner to our customers,” Wipro IT Business executive director and CEO TK Kurien said.

The IT services segment had 1,42,905 employees as of 31 December 2012, an increase of 2,336 people in the quarter. It added 50 new customers in the reporting quarter.

“We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management,” Wipro’s executive director and CFO Suresh Senapaty said.

Its IT products segment recorded revenue of Rs997 crore for the quarter, a year-on-year increase of 11%, while consumer care and lighting business segment recorded revenue of Rs1,028 crore, a growth of 17% year-on-year.

Both businesses contribute about 9% of its total revenue.

In November last year, the company had announced the demerger of its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on information technology.