Wipro posts revenue, profit growth

Indian outsourcer Wipro reported revenue was up by 35 percent over last year

Wipro, India's third largest outsourcer, on Friday reported growth in revenue and profits for the quarter ending Sept. 30.

The company reported revenue of 47.28 billion Indian rupees ($1.19 billion at the exchange rate on closing day of the quarter), up by 35 percent for the same quarter last year. Its profits at 8.1 billion rupees were up 17 percent from profits in the same period last year.

The results are based on U.S. generally accepted accounting principles (GAAP).

During the quarter, Wipro completed the acquisition of Infocrossing, a U.S. provider of IT infrastructure management, enterprise application, and BPO (business process outsourcing) services through a tender offer. The company is also expanding its presence in the United States by setting up its first development center in the country for delivery of services onshore to its customers in the States. Wipro expects to fill 200 positions at this center in Atlanta, Ga., in the first year. A near-shore center in Monterrey, Mexico was also set up during the quarter.

Wipro has both a domestic and export business. Exports for the quarter, consisting of IT and BPO services, were 32.4 billion rupees, up by 19 percent over exports in the same quarter last year.

Wipro, like other Indian outsourcers, has been affected by the weakening of the U.S. dollar. A weak dollar translates into fewer rupees, even as these companies have to spend more in rupees to pay for rising staff costs. The company's operating margins for the quarter improved despite increasing salaries in India, on account of higher prices, higher utilization, and operational efficiency, Wipro said.

India's largest outsourcer Tata Consultancy Services (TCS) of Mumbai, and second largest outsourcer, Infosys Technologies of Bangalore, both reported strong revenue and profits growth for the quarter.

Wipro added 59 new clients during the quarter in its export business. It also added 5,341 new employees, taking the total number of employees in its export business to 77,478 as of Sept. 30.