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Wipro too betters estimates, profit up 40 pc
ENS
ECONOMIC BUREAU
MUMBAI, OCTOBER 18: AFTER Infosys Technologies, software
giant Wipro Ltd too beat market estimates by reporting a 40
per cent growth in net profit to Rs 216.5 crore for the quarter
ended September 2001 as compared to the same period of last
year. Its revenue was up 15 per cent to Rs 877.6 crore despite
the steep fall in the profits many of its overseas MNC clients.
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Wipro
ties up with Spectramind
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| NEW
DELHI: Wipro has announced an investment of Rs 48
crore in Spectramind as part of a move to tap the remote
customer servicing business. Wipro will hold 20 per cent
of the equity shares and convertible preference shares
which of Spectramind’s equity after the conversion. Wipro
will provide clients technology-intensive customer support
services and will use Spectramind to provide remote processing
services. ENS |
For
six months ended September 2001, India’s number three software
exporter earned a net profit Rs 430.5 crore, up 63 per cent
year-on-year, and a revenue of Rs 1,676 crore, a growth of
21 per cent. But contrary to analyst expectations, the NYSE-listed
company, which had in July reiterated that it expected its
revenue to grow faster than the industry average this year,
which has been estimated above 40 per cent, has not lowered
the guidance. Analysts were expecting a flat growth in its
profits in the September quarter.
Commenting
on the results, chairman Azim Premji said: “we believe we
have grown ahead of the software services industry growth
rate for the half-year and continue to believe that we will
grow ahead of the industry growth for the full year”.
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Decline
in number of employees
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BANGALORE: THERE has been a net decline in the
number of employees in Wipro’s global IT services business
by 384 in the quarter ended September 30, 2001. According
to a company statement, consequent to 495 separations,
there was a net decline in the number of people by 384
as compared to June 30, 2001. Gross addition in employees
in this quarter, was 111, the statement said. ENS |
Wipro
got hit this year when its premier customers were mauled by
an industry slowdown, but showed a 40 per cent year-on-year
jump in net profit in the July-September second quarter. Wipro
vice-chairman Vivek Paul, who runs the main software business
of the diversified company with a base in the US, said customers
like Nortel Networks had cut back on business but Wipro was
seeing strong demand from other business segments. He named
electronic commerce, data warehousing, business software and
the bluetooth technology for wireless Internet among areas
that offered sound potential. Wipro, like other software firms,
blends offshore software work in India where about 80 per
cent of its some 9,400 workforce are based, with services
provided at client sites abroad. Since last month’s attacks
on the US and the US-led military strikes in Afghanistan,
Wipro has seen delays in closing large orders and several
deferred customer visits but smaller orders are flowing in
as usual, Paul said.“The pitch we gave clients was that India
is not at high risk. We told them that India is as far as
Afghanistan as Switzerland is to Chechnya,” he said.
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