SDA India is an online resource for Software, Development,IT, Architecture, Open Source, Mobile, Security, Databases, Delphi, C, OS, Asp, .Net, Php, Xml, Java
From the News Desk
Thursday, 19. July 2007
Appreciating Rupee Slows Wipro’s Profit
Wipro, India’s third largest software services company by sales has reported a lower than expected profit for the April June quarter. It attributed the slump to the rising rupee against the dollar.
Wipro, based in Bangalore, reported a net profit of Rs. 7.1 billion (USD 175 million) in its fiscal first quarter compared with profit of Rs. 6.14 billion in the same period a year ago. The growth was much lower than the 44 per cent profit increases of the previous quarter and the same quarter a year ago.
Profit for the January-March quarter was 8.61 billion rupees (USD200 million).
Rising rupee has been a cause of concern for Indian IT companies who derive most of their revenues in dollars as bulk of their work is for Western clients. Last week, Infosys Technologies, Wipro’s Bangalore based rival cut revenue and profit forecast for the full year citing the rising rupee.
Wipro's sales totalled Rs. 41.83 billion (USD1.03 billion) during the April-June period, which was up by 34 per cent from a year ago.
"The results for the quarter are satisfying considering the strong headwinds faced by us in the form of an appreciating rupee," Chairman Azim Premji said.
Wipro, which also makes laptop and desktop computers, cooking oils, soaps and toiletries and lighting products, said it won 39 new clients during the April-June quarter, including a USD130 million outsourcing deal from a European firm.
Wipro, based in Bangalore, reported a net profit of Rs. 7.1 billion (USD 175 million) in its fiscal first quarter compared with profit of Rs. 6.14 billion in the same period a year ago. The growth was much lower than the 44 per cent profit increases of the previous quarter and the same quarter a year ago.
Profit for the January-March quarter was 8.61 billion rupees (USD200 million).
Rising rupee has been a cause of concern for Indian IT companies who derive most of their revenues in dollars as bulk of their work is for Western clients. Last week, Infosys Technologies, Wipro’s Bangalore based rival cut revenue and profit forecast for the full year citing the rising rupee.
Wipro's sales totalled Rs. 41.83 billion (USD1.03 billion) during the April-June period, which was up by 34 per cent from a year ago.
"The results for the quarter are satisfying considering the strong headwinds faced by us in the form of an appreciating rupee," Chairman Azim Premji said.
Wipro, which also makes laptop and desktop computers, cooking oils, soaps and toiletries and lighting products, said it won 39 new clients during the April-June quarter, including a USD130 million outsourcing deal from a European firm.
