Wipro's quarterly revenue, profits up

India's third largest outsourcer Wipro has reported growth in revenue and profit, although like other Indian outsourcers it was affected by the strengthening of the Indian rupee against the US dollar.

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India's third largest outsourcer Wipro has reported growth in revenue and profit, although like other Indian outsourcers it was affected by the strengthening of the Indian rupee against the US dollar.

The company posted total revenue of Indian rupees 41.83 billion (£406m) in the quarter ended 30 June, up 34% over revenue in the same period last year. Net revenue rupees 7.1 billion (£85.9m), up by 16% for the same period a year ago.

Wipro, headquartered in Bangalore, has both a domestic and export business. Its export-oriented outsourcing business, called Global IT Services and Products, posted revenue of rupees 29.4 billion (£355m), up by 20% over the same period last year. The company's operating margin for this business was however down from the same quarter last year because of the strong rupee.

The results are based on US generally accepted accounting principles (GAAP), the company said.

The company's export business had 72,137 employees as of 30 June, which included 53,073 employees in its IT services and products business, and 19,064 employees in the business process outsourcing (BPO) services business. The company added 4,319 staff during the quarter of which 2,719 employees were added in its IT services and products business and 1,600 employees in its BPO business.

During the quarter, some of the company's services lines like technology infrastructure services and software package implementation grew by over 50% year-on-year, while its BPO and testing services grew by over 40% year-on-year.

The company's export business accounted for 70% of total revenue and 91% of operating income for the quarter. Wipro does not report profits separately for this business, which added 39 new outsourcing clients in the quarter.

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