Wipro Q3 net income up 18 percent, above expectations

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

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.