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Wipro profit up better than expected 24 percent

- Associated Press - Thursday, November 1, 2012

MUMBAI, INDIA (AP) - Wipro reported September quarter profit of 16.1 billion rupees ($300.6 million) Friday, an increase of 24 percent in rupee terms, despite modest revenue growth.

Profit was better than expected, though revenue came in slightly below expectations, at 106.6 billion rupees ($2.0 billion).

Analysts polled by FactSet forecast profit of 15.5 billion rupees ($289.2 million) on sales of 108.5 billion rupees ($2.0 billion).

The company says revenue in its core outsourcing business was $1.54 billion, up 4.6 percent in dollar terms from a year ago.

India's third largest outsourcer said revenue in its core information technology business would tick up slightly, to between $1.56 billion and $1.59 billion in the December quarter.

"Our focus on driving significant operational improvements has helped us predominantly mitigate the incremental impact of wage increases and currency volatility," chief financial officer Suresh Senapaty said in a statement Friday.

Wipro on Thursday said it will hive off its non-outsourcing operations into a separate, privately traded company and focus solely on its core software services business within publicly traded Wipro. The news sent the stock up 2.7 percent Thursday. Wipro also has consumer care and lighting, infrastructure engineering and medical diagnostics businesses.

IT services accounted for 79 percent of revenue and 93 percent of operating income during the September quarter. Just over half of revenues come from North America and nearly a third from Europe.

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