Wipro profits surge on continued outsourcing boom

India's Wipro posts strong growth in revenue, net profits for the quarter ended 30 September


India's Wipro posts strong growth in revenue, net profits for the quarter ended 30 September.

India's Wipro reported strong growth in both revenue and profit for the quarter ended 30 September as evidence of the continuing growth in offshore outsourcing.

The outsourcer posted revenue of 35.1 billion Indian rupees (US$767 million or £409m as of the closing day of the quarter), up 41% from the same quarter last year. The company's profit was 6.96 billion rupees, up 48% from last year.

The results are based on US generally accepted accounting principles (GAAP), and refer to the second quarter of Wipro's fiscal year.

Wipro has both a domestic and export business. Exports, consisting of IT services and business process outsourcing (BPO) services, were up by 44% over exports in the same quarter last year to 27.2 billion rupees.

India’s largest outsourcer, Mumbai-based Tata Consultancy Services, and the second largest, Bangalore-based Infosys, also reported strong revenue and profit growth for the quarter, citing business from new customers and an overall buoyancy in offshore outsourcing.

Wipro, which is India’s third largest outsourcer, added 54 new clients during the quarter in its export business. It also added 5,328 new employees, taking the total in its export business to 61,179.

Higher operational efficiency and increased profits from its BPO business helped Wipro offset the impact of a wage increase in the quarter, the company said.

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