Bangalore, India-based Wipro saw net profit fall 4% to INR 2.19bn ($46m) during the quarter ended December 31 2002, on revenue that increased 26% to INR 10.9bn ($226m). This compares to net profit of INR 2.1bn ($44m) and revenue of INR 10.6bn ($218m) in 2002.
The global IT services division Wipro Technologies Ltd, which makes up 69% of total revenue, grew earnings before interest and tax 3% to INR 2.1bn ($44m), on revenue that increased 23% to INR 7.4bn ($155m), although the operating margin of 28.3% declined 6% from the previous quarter. During the quarter the company said that an increase in utilization rates of 6% was offset by a decrease of 9.4% in prices due to the continuing pricing pressure in the market. Despite the fall in profitability, Wipro increased its headcount during the period by 1,304 ending December with a total workforce of 12,602 people.
Wipro had continued success with its back-office processing subsidiary Spectramind e-Services, in which it acquired the remaining outstanding shares during the period, and claimed to have signed one new customer and letters of intent with four additional customers, as well increasing its headcount to 3,884 from 686 at the end of the previous quarter. During the quarter, Wipro also acquired 100% ownership of Wipro Healthcare Information Technologies, formerly GE Medical Systems, acquiring a 40% stake in the business from partner Citadel Healthcare for $2m.
For the quarter ending March 31, 2003, Wipro said it expects revenue from IT services to increase 4.5% sequentially to $162m, including $12m from Spectramind, and $2.5m from Wipro HealthScience.
Source: Computerwire
