Friday, January 21 2005 12:04 Hrs (IST) - World Time -

Bangalore: Global IT major Wipro Ltd has posted a robust growth of 56 per cent in net profit at Rs 426.80 crore for the third quarter ended December, over the same period of the last fiscal (2003-04).

Declaring its financial results for the quarter (Q3) under review, the NYSE-listed Wipro said in a statement in Bangalore today (Jan 21, 2005) revenue grew by 39 per cent to Rs 2110 crore over Rs 1521.40 crore during the same period last year.

Similarly, profit before interest and tax (PBIT) grew by 66 per cent to Rs 476.2 crore Year on Year for the entire group company, whereas PBIT from its global IT services and products shot up by 65 per cent to Rs 413.90 crore.

"Despite increase in compensation cost and rupee appreciation, the opening margin from global IT business increased by 27 per cent during Q3," Wipro said.

Giving outlook for the fourth quarter (January-March) of the current fiscal(FY2005), Wipro chairman Azim Premji said revenue from global IT services and products was expected to be about $ 370 million.

"We continued our strong performance into the third quarter of the fiscal with revenue from global IT business growing to $ 352 million, $ 5 million more than the guidance of $ 247 million we gave at the beginning of the quarter," he said.

"Our strategy of offering an integrated solution to our customers continues to pay off, as demonstrated by the healthy sequential growth in all our key verticals and service lines during the quarter," Premji said.

"Looking ahead, we expect our revenue from global IT services and products business to be about $ 370 million," he added.

The global IT services division added 26 new clients in Q3, comprising 16 customers in R and D services and 10 customers in enterprise services.

According to Wipro vice-chairman Vivek Paul, there was one per cent sequential improvement in price realisation for onsite as well of offshore projects.

In terms of verticals, financial solutions, telecom and manufacturing business posted double digit growth even sequentially as in the case of service lines.

The company has also claimed its annualised attrition rate declined by 12 per cent.

Corporate executive vice-president Suresh Senapaty said proactive hedging and continued operational improvements helped the company to mitigate the impact of higher employee compensation and rupee appreciation on operating margins of it global IT business.

"Global IT services and products accounted for 75 per cent of the group's total revenue and 87 per cent of the PBIT for the quarter under review," Senapaty said.

WiproInfotech, the IT services and products business in India, Middle East and Asia Pacific, posted revenue of Rs 342.1 crore, registering a growth of 45 per cent YoY, and a PBIT of Rs 27.2 crore, up by 69 per cent YoY.

Wipro said it hired over 2274 people, including 1,327 workers for its BPO arm, Wipro spectramind to take the total strength to 39,337 people.