Wipro net soars to Rs 274 crore

Wipro’s third-quarter net profit jumped 19% to Rs 274 crore against Rs
230.6 crore in the yearago period on the back of a booming software services
outsourcing business. Total revenues of India’s third largest software
services company, grew 37% to Rs 1,521.4 crore ($1.5 billion) for the three
months to December 2003. Wipro chairman Azim Premji attributed the
better-than-expected result to "sustained volume growth helped by a stable
pricing environment and operational improvements.

The quarterly profit was the highest ever posted for a three-month period by
the company since it was founded in 1945, amidst signs of a rebound in demand
from the telecom sector. Aided by robust growth across all verticals and
multiple large-customer wins, Wipro Technologies showed a double-digit
sequential revenue growth for the second consecutive quarter. Third quarter
revenues for the current fiscal grew 41% over the corresponding quarter last
fiscal to touch Rs 1,147 crore.

"There is a wind in our sails...and late adopters of outsourcing are coming to India…" Vivek Paul, CEO, Wipro Tech

Wipro said that it expected revenues of $269 million from its global
information technology business in the quarter to March 31, 2004.

An upbeat Vivek Paul, CEO, Wipro said, "There is a wind in our
sails," adding that "customers are willing to spend more and late
adopters of outsourcing are coming to India."

One future shock could be shrinking profit margins in the face of greater
volumes– an issue Paul will have to contend with.Wipro added 24 new customers.
As of end-December, Wipro has two $40 million and five $30 million clients. In
Q3, clients with $20 million and $10 million run-rate increased to 11 and 25
respectively (from 10 and 18 in Q2).

Team DQ