Wipro buckles despite strong results

Software major Wipro advanced 1.44% to Rs 587.50, after its net profit for Q4 March 2007 increased 11.84% on a sequential basis. It also eased from a high of Rs 600, struck in early trade.

Wipro reported a net profit of Rs 856 crore for Q4 March 2007, as compared to Rs 765 crore for Q3 December 2007, a growth of 11.84%. Its revenues increased 8.89% to Rs 4333 crore from Rs 3979 crore.Global IT revenues rose 7.25% to Rs 3084 crore compared to Rs 2875.5 crore in the earlier quarter. Wipro posted Q4 BPO revenues of Rs 263.7 crore and added 44 new clients.

Wipro's Q4 Global IT operating profit margin (OPM) stood at 27.9% versus 25.4% on a Q-o-Q basis and BPO operating profit-margin stood at 24.69%.

For the year ended March 2007, the group posted a net profit of Rs 2942.10 crore compared to Rs 2067.40 crore for the year ended March 2006. Total revenues increased from Rs 10625.80 crore for the year ended March 2006 to Rs 15000.80 crore for the year ended March 2007.

For the quarter ending June 2007, Wipro expects to post revenues from Global IT services business of around $711 million.