Wipro profits up 18 pct on strong demand

Jan 18, 2013 by Erika Kinetz

Wipro reported an 18 percent rise in December quarter profits Friday, beating expectations as global cost-cutting drives global businesses to Indian outsourcing companies.

India's third-largest said it earned 17.2 billion rupees ($313 million) in the October to December quarter on revenue of 110.3 billion rupees ($2.0 billion), a rise of 10 percent from a year ago.

Analysts polled by FactSet had forecast net profit of $301 million on revenue of $2.0 billion.

Wipro's rivals and Infosys also reported strong earnings this quarter, fueling hopes of revival in technology spending, despite global uncertainties.

"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity," chairman Azim Premji said in a statement.

Europe was a bright spot for Wipro, with growth from the region up 7.5 percent from the prior quarter, while business from the Americas slid 0.7 percent.

Wipro said revenue from its core business grew 4.8 percent from a year ago, to $1.58 billion. The company predicted those revenues would rise a further zero to 3 percent this quarter, over the December quarter, weighed on by political uncertainty over the U.S. .

Executives said volumes slid in the December quarter from the prior quarter, but pricing increased over 3 percent.

The stock was down nearly 4 percent in early trading in Mumbai, reversing gains made earlier this week.

Explore further: WellPoint 2Q tops Wall Street expectations

not rated yet
add to favorites email to friend print save as pdf

Related Stories

India's Wipro Q4 profit up 7.7% but forecast muted

Apr 25, 2012

India's third-largest software company Wipro on Wednesday posted a 7.7 percent year-on-year rise in net profit for the January-March period, but gave a muted forecast that sent its shares tumbling.

Wipro profit up better than expected 24 percent

Nov 02, 2012

Wipro reported September quarter profit of 16.1 billion rupees ($300.6 million) Friday, an increase of 24 percent in rupee terms, as customers in Europe turned to outsourcing to cut costs and growth begins to return to the ...

Wipro posts 9.7 percent profit rise, below forecast

Oct 22, 2010

India's third-biggest software firm Wipro reported Friday a lower-than-forecast 9.7 percent rise in quarterly net profit, blaming a higher rupee and wage costs for the disappointing earnings.

India's Wipro positive despite global uncertainty

Oct 31, 2011

Indian IT outsourcing giant Wipro on Monday projected a positive outlook for the industry, despite gathering clouds over the global economy, as it announced a rise in quarterly profits.

Recommended for you

Chinese man brings gay conversion therapy lawsuit

56 minutes ago

(AP)—A gay Chinese man said Thursday he was suing a psychological clinic for carrying out electric shocks intended to turn him straight, as well as the search engine giant Baidu for advertising the center.

Alcatel loss narrows in 2Q but revenue stagnates

1 hour ago

(AP)—Telecommunications equipment company Alcatel-Lucent SA says its net loss narrowed in the second quarter thanks to lower accounting charges, while revenue stagnated and restructuring charges mounted.

Sony surprises with first quarter profit

6 hours ago

(AP)—Sony Corp. reported a surprise eightfold jump in quarterly profit Thursday as sales got a perk from a cheap yen and its bottom line was helped by gains from selling buildings and its stake in a video-game maker.

User comments : 0