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Wipro reports Weak Results

July 18, 2008

Wipro has reported a net profit of Rs 546 crore for the June 2008 quarter as against Rs 671.4 crore during the year-ago period. The company’s total income stands at Rs 4,807.4 crore for the reporting quarter as against Rs 3,776.8 crore for the June 2007 quarter.

On a consolidated basis, the group has reported a net profit of Rs 907.8 crore for the June 2008 quarter as compared to Rs 725.6 crore in the corresponding previous period. The group’s total income is pegged at Rs 6,087.1 crore for the quarter ended June 2008 as compared to Rs 4,303.2 crore during the year-ago period.

Wipro guided for 2Q IT services revenues of $1089m which implies growth of ~2% qoq. The guidance is muted compared to that of Infosys (~5-6% growth guidance). Management cited the environment as the reason for cautious stance in the near term and expects the second half to witness a recovery.

Wipro’s global IT services headcount declined by 725 employees in the quarter. Management indicated that hiring was slower in the quarter because they had hired ~2,000 employees towards the end of the previous quarter.

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