Wipro net up 24% to Rs 1,611 crore

Wipro on Friday reported a jump of 23.8 per cent in consolidated net profit to Rs 1,610.6 crore (Rs 16.10 billion) for the second quarter ended September 30.

Last year, the software major had posted a net profit of Rs 1,300.9 crore (Rs 13 billion) in the second quarter, as per international accounting standards.

Total income from operations during the reporting quarter stood at Rs 10,620.3 crore (Rs 106.2 billion), against Rs 9,064.5 crore (Rs 90.64 billion) in the July-September period of last fiscal, an increase of 17.16 per cent.

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"We have chartered a new course for Wipro by demerging our diversified Non IT businesses.

I am confident that the demerger will enhance value for all our stakeholders and provide fresh momentum for growth for each of our businesses," Wipro Chairman Azim Premji said in a statement.

Wipro on Thursday said it will demerge its non-IT businesses like Consumer Care & Lighting into a new company, a move which will allow it to focus exclusively on information technology.

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The new unlisted firm will be called Wipro Enterprises and include Wipro Consumer Care & Lighting (including furniture business), Wipro Infrastructure Engineering (hydraulics and water businesses) and Medical Diagnostic Product & Services business.

Revenues from IT services during the reported quarter stood at $1,541 million, a sequential increase of 1.7 per cent and year-on-year increase of 4.6 per cent.

"We expect revenues from our IT Services business to be in the range of $1,560-$1,590 million for the quarter ending December 31, 2012," Wipro said.

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The IT services division hired 2,017 people in the second quarter, taking the total head-count to 1,40,569 employees as of September 30, 2012.

"Our focus on driving significant operational improvements has helped us predominantly mitigate the incremental impact of wage increases and currency volatility," Wipro Executive Director and Chief Financial Officer Suresh Senapaty said.