Wipro Beats Estimates

Wipro Limited (WIT - Analyst Report) announced second quarter of fiscal year 2010 results. Total revenue for quarter ended Sep 30, 2009, was Rs 69.18 billion ($1.44 billion), representing an increase of 6% over the same period last year. Net income for the quarter ended Sep 30, 2009, was Rs 11.71 billion ($243 million), representing an increase of 21% from the same period last year. Earnings per share for the quarter ended Sep 30, 2009, were Rs 8.04 (17 cents), representing an increase of 20% over the same period last year. This exceeded the Zacks Consensus Estimate of 14 cents per share. 

IT Services business segment recorded revenue of Rs 49.98 billion ($1039 million) for the quarter ended Sep 30, 2009, representing an increase of 5% over the same period last year. EBIT for this segment was Rs 11.80 billion ($245 million) for the quarter ended Sep 30, 2009, representing an increase of 19% over the same period last year. 

IT Products business segment recorded revenue of Rs 11.85 billion ($247 million) for the quarter ended Sep 30, 2009, recording a growth of 19% over the same period last year. EBIT for this segment was Rs 612 million ($12.7 million) for the quarter ended Sep 30, 2009. 

Consumer Care and Lighting business segment recorded a revenue of Rs 5.56 billion ($116 million) for the quarter ended Sep 30, 2009, representing an increase of 15% over the same period last year. EBIT for this segment was Rs 732 million ($15.2 million) for the quarter ended Sep 30, 2009, representing an increase of 12% over the same period last year. 

Wipro GE Healthcare, the joint venture between Wipro Ltd. and GE Healthcare, integrated several existing standalone business units and manufacturing plants of GE Healthcare in India under the Wipro GE Healthcare entity. This strategic move will lead to more effective management and resource utilization and help accelerate growth for GE Healthcare, the US$17 billion health care business of General Electric Company (GE - Analyst Report) through Wipro GE Healthcare’s large distribution network. 

Looking ahead for the quarter ending Dec 31, 2009, the company expects revenues from its IT Services business to be in the range of $1,092 million to $1,113 million. 

Wipro provides comprehensive IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services company globally. Wipro’s IT Services business was assessed at Level 5 for CMMI V 1.2 across Offshore and Onsite development centers. Major competitors include Cognizant Technology Solutions Corporation (CTSH - Analyst Report) and Infosys Technologies Limited (INFY - Analyst Report).