Wipro posts 18% rise in Q3 net at Rs 1,004 crore

Wipro, India’s third largest IT company, posted a 18% growth in its net profit in the quarter ended December, which fell below some analysts’ expectations. But what was worse was its forecast for the coming months.
“Consumer confidence is significantly down and leading indicators suggest that the bottom is not in sight,” said Wipro chairman Azim Premji at the announcement of the financial results on Wednesday.
Premji said the tough times would impact all — shareholders, customers, employees, investors and partners. “The macro-economic challenges are significantly impacting all business segments. However, recessions do not last, resilient companies do. We are resilient to withstand the near-term challenges posed by an uncertain environment.’’
During Q3, Wipro reported a year-on-year growth in revenues of 25% at Rs 6,618 crore, while net profit grew at 18%, crossing the Rs 1,000 crore mark at Rs 1,004 crore for the first time.
The company’s IT services business grew 7% compared to the preceding quarter in rupee terms while it reported a sequential decline of 0.9% in dollar terms. In the on-going quarter, the revenue in dollar terms is forecasted to dip by 7% against the preceding quar
ter. The profit margin has been impacted by 60 basis points after Wipro wrote off a payment due from client Nortel Networks, which declared bankruptcy last week. Wipro had an outstanding of $15 million from Nortel. The company saw 31 new clients during Q3. Its consumer care and lighting business grew at 21%, furniture business grew 31%, while soap brands (Santoor & Chandrika) grew 27% each.
On Satyam
Wipro will not hunt for clients or employees of Satyam, said co-CEO, Suresh Vaswani. “But if they are talking to us as part of their consolidation plans, we will engage them in dialogue. Customers are increasingly exploring a single-vendor scenario,’’ he said.

On Barak Obama
Premji said, “If he does his job (new US President) well, like the way he had carried out his election campaigns, he will infuse a lot of optimism to the US economy and India too will benefit.’’
Premji loses his cool
Chairman Azim Premji lost some of his usual cool when a media person asked him why Wipro had not disclosed the World Bank’s four-year ban of the company for offering “improper benefits to its employees’’ (the company did so only after the World Bank disclosed the ban 18 months after it was imposed).
Premji said, “My colleagues have said all that needed to be said at the time and I do not want to add anything more.’’