by NR INDRAN / INT

Wipro Limited today announcedfinancial results under International Financial Reporting Standards (IFRS) for its second quarter ended September 30,2011.

Highlights of the Results:

Ø  IT Services Revenue was $1,472 million, a sequential increase of 4.6% and YoY increase of 15.7%.

Ø  Non-GAAP constant currency revenue growth was 5.5% sequentially.

Ø  Total Revenues were `90.94 billion ($1.85 billion1), an increase of 18% YoY.

Ø  Non-GAAP Adjusted Net Income was `13.06  billion ($266 million1), an increase of 2% YoY. Net

Income was `13.01 billion ($265 million1), an increase of 1% YoY.

Ø  IT Services Revenues were `68.29 billion ($1.39 billion1), an increase of 7% sequentially and 19% YoY.

Ø  IT Services Earnings Before Interest and Tax (EBIT) was `13.64 billion ($278 million1), an increase of

7% YoY.

Ø  Our Operating Income to Revenue for IT Services was 20% for the quarter.

Performance for the quarter ended September 30, 2011.

Azim Premji, Chairman of Wipro, commenting on the results said – “Macroeconomic sentiments continue to remain uncertain.We have seen growth momentum build up in our IT Business with healthy volume growth. Our focused investment strategy willget the business to a higher growth trajectory. ”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “We are continuing to see incremental progress in our client mining strategy with 5 customers contributing more than $100 million of revenues and our top customerhitting a revenue run rate upwards of $200 million. We had an impact on operating margins in the quarter due to salary increases.”

T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – “We have had a strong quarter with Revenues ahead of the upper end of the guided range. We continue to build differentiation and business value through our focus on key themes – Variabilization, Consumerization, Performance Analytics and Innovation in a world of constraints.”

1.            For the convenience of the reader, the amounts in Indian rupees in this release have been translated into United States dollars at the noon buying ratein New York City on September 30, 2011, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1=`49.05. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2011 was US$1= `46.38

Outlook for the Quarter ending December 31, 2011

We expect Revenues from our IT Services business to be in the range of $1,500 million to $1,530 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.60, Euro/USD at 1.40, AUD/USD at 1.04, USD/INR at46.42.

IT Services (75% of Total Revenue and 92% of Operating Income for the quarter ended September

30, 2011)

The IT Services segment had 131,730 employees as of September 30, 2011, an increase of 5,240 people this quarter. We added 44 new customers for the quarter.

In the current macro-economic environment, corporations across the globe are looking to maximize the potential of technology deployments and are increasingly relying on business models and technologies to variabilize their IT spends, enabling more differentiating investment for IT based Innovation.

Wipro is seeing traction with clients on cloud and variabilized business model offerings. State Street Corporation  one  of  the  world’s  leading  providers  of  financial  services  to  institutional investors, has entered into a multi-year agreement with Wipro to provide application maintenance and support services  Wipro will deploy pioneering ‘lean’ methodologies delivered through its award winning CIGMA platform for this IT transformation engagement.

A leading European Communications Services Provider has expanded its existing relationship with Wipro to its wholesalebusiness, wherein Wipro will provide variabilized technical support services for the service provider’s customers in the United Kingdom.

Wipro has partnered with a Leading Convenience Retailer to provide Infrastructure Management Services. Wipro  will  provide easily  scalable  hosting  and  data  center  operations  services  to  meet  the  client’s aggressive growth plans by applying proven tenets of variabilization such as standardization and simplification to drive efficiency and optimize delivery.

Wipro won an order from UIDAI (Unique Identification Authority of India) for setting up computing and storage platform for 100 million Aadhaar numbers. Wipro also signed contracts with UIDAI for Data Center hosting services, specialized consulting and manpower services.

Awards and accolades

Wipro Technologies achieved Diamond Level Status, the highest ranking available, in Oracle Partner Network (OPN) Specialized program and has been recognized for expertise and co-development efforts across the Oracle Stack and continued commitment to joint customer success.

Wipro Technologies’ Mobile-Trust Framework won the 3rd Annual 2011 Golden Bridge Awards for Mobile

Security Solutions category.

IT Products (11% of Total Revenue and 3% of Operating Income for the quarter ended September

30, 2011)

Ø  Our IT Products  segment recorded Revenue of `10  billion ($204 million1) for the quarter ended

September 30, 2011 a decline by 6% YoY.

Ø  EBIT was `451 million ($9 million1) for the quarter, a decline of 15% YoY.

Ø  The ratio of our Operating Income to Revenue for this segment was 4.5% for the quarter.

Consumer  Care  and  Lighting  (9%  of  Total  Revenue  and  6%  of  Operating  Income  for  the quarter ended September 30, 2011)

Ø  Our Consumer Care and Lighting business segment recorded Revenue of `8 billion ($163 million1) for the quarter ended September 30, 2011, representing an increase of 20% YoY.

Ø  EBIT was `882 million ($18 million1) for the quarter, an increase of 6% YoY.

Ø  Operating Income to Revenue for this segment was 11% for the quarter.

Wipro Limited

Ø  Total  Revenue  for  the  quarter  ended  September  30,  2011  was  `90.94  billion  ($1.85  billion1)

representing an increase of 18% over the same period last year.

Ø  Net Income for the quarter ended September 30, 2011 was `13.01 billion ($265 million1) representing an increase of 1% over the same period last year.

Ø  Non-GAAP  Adjusted  Net  Income  (excluding  impact  of  accelerated  amortization  of  stock  based

compensation)  for  the  quarter  ended  September  30,  2011  was  `13.06   billion  ($266  million1) representing an increase of 2% over the same period last year.

You can contact author @ [email protected]