Friday, July 29, 2005

Wipro quarterly profit rises 31 percent on outsourcing

From: silicon

India's third-largest software exporter Wipro Ltd. said Friday its profit jumped 31 percent to $98.1 million in the April-June quarter mainly because of outsourcing by Western corporations.Revenue grew 29 percent to $525.5 million, including $397.3 million from outsourcing, company results under the U.S. Generally Accepted Accounting Principles showed.
In April-June 2004, profit was $74.8 million and revenue totaled $406.7 million.Western outsourcing was expected to contribute $422 million in revenue in the July-September quarter. The company also said rising costs and temporary restructuring expenses led to shrinking of gross profit margin to 33.16 percent of revenues from 35.65 percent a year earlier. To reorganize its call center business and diversify into other back-office services, Wipro is spending more money on recruitment, training and marketing.Wipro runs a separate division to provide outsourced services to Asian companies, and is also engaged in consumer care products, lighting and computer hardware.Wipro hired 2,097 software professionals during the latest quarter, for a total staff of 41,911. It also received 29 new clients.

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