Wipro Q3 net income up 18 percent, above expectations

Summary:Indian software services provider posts an 18 percent rise in net income at US$313 million for the quarter ended December, while revenues grow 10 percent to reach US$2.01 billion.

Wipro's net income grew 18 percent to US$313 million for its third quarter, beating analyst expectations. 

Wipro

In a statement Friday, the Bangalore-headquartered software services provider reported revenues of US$2.01 billion for the quarter ended Dec. 31, 2012, a year-on-year growth of 10 percent. Its profits beat IIFL (India Infoline Finance Limited) analyst estimates by about 8 percent to 9 percent.

The vendor's IT services revenues, which accounted for 78 percent of its total revenue, grew 4.8 percent year-on-year to reach US$1.58 billion. For the quarter ending Mar. 31, 2013, Wipro is expecting revenues from IT services to grow from US$1.59 million to US$1.63 million.

Commenting on its third-quarter results, T.K Kurien, the company's executive director and CEO of IT Business, said: "We have seen broad-based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client-mining, with 10 customers contributing more than US$100 million and lower attrition."

During the third quarter, Wiprod said it secured a "large R&D applications and infrastructure services deal" from a Europe-based telecom equipment vendor with which it had a longstanding partnership.

Wipro's Indian competitors Tata Consultancy and HCL Technologies also released their results this week, both reporting results above expectations with Tata reporting US$651 million in net profit while HCL booked US$176.3 million in net profit .

In mid-2012, Wipro restructured its  telecom business to focus on services  to buffer against slowdown in the global telecom equipment market.

Topics: Outsourcing, India, Tech Industry

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The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate mas... Full Bio

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