Oct. 26, 2009 (PR Newswire) -- BANGALORE, India and EAST BRUNSWICK, N.J., Oct. 26 /PRNewswire-FirstCall/ -- Wipro Limited (NYSE: WIT) today announced financial results under IFRS for its second fiscal quarter ended September 30, 2009.

Highlights of the Results:

--  IT Services Revenue in dollar terms was $1,065.2 million, a sequential
growth of 3.2% and YoY decline of 4%.
--  IT Services Revenue on constant currency was $1,052.5 million, a
sequential growth of 1.9%. On a constant currency basis, YoY decline was
1.6%.
--  Total Revenues were Rs. 69.18 billion ($1.44 billion(1)), representing
an increase of 6% over the same period last year.
--  Net Income was Rs. 11.71 billion ($243 million(1)), representing an
increase of 21% over the same period last year.
--  Non-GAAP Adjusted Net Income (excluding impact of accelerated
amortization of stock based compensation) was Rs. 11.63 billion ($242
million(1)), representing an increase of 20% over the same period last
year.
--  IT Services Revenues were Rs. 49.98 billion ($1,039 million(1)),
representing an increase of 5% over the same period last year.
--  IT Services Earnings Before Interest and Tax (EBIT) was Rs. 11.80
billion ($245 million(1)), representing an increase of 19% over the same
period last year.
--  IT Services added 37 new clients in the quarter.
--  IT Products Revenue grew 19% over the same period last year and EBIT
grew by 48%.

--  Consumer Care and Lighting Revenue grew 15% over the same period last
year and EBIT grew 12%.

Performance for the Quarter ended September 30, 2009 and Outlook for our Quarter ending December 31, 2009

Azim Premji Chairman of Wipro, commenting on the results said -

"We see more stability in volumes and pricing as well as an improving demand environment. Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation. Looking ahead for the quarter ending December 31, 2009, we expect revenues from our IT Services business to be in the range of $1,092 million to $1,113 million*"

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said -

"Our unwavering commitment to operational improvements continues to pay dividend, resulting in double-digit sequential growth in Profit After Tax. Margins for the IT Services business stood at 23.6%, an expansion of 143 bps sequentially and 268 bps YoY."

* Guidance is based on constant currency exchange rates, GBP/USD at 1.64, Euro/USD at 1.44, USD/INR at 48.33

Wipro Limited

Total Revenue for our quarter ended September 30, 2009 was Rs. 69.18 billion ($1.44 billion(1)), representing an increase of 6% over the same period last year. Net Income for our quarter ended September 30, 2009 was Rs.11.7(1) billion ($243 million(1)), representing an increase of 21% over the same period last year. Net Income for our quarter ended September 30, 2009 on an Adjusted Non-GAAP basis (excluding impact of accelerated amortization of stock based compensation) was Rs. 11.63 billion ($242 million(1)), representing an increase of 20% over the same period last year. Earnings per Share for our quarter ended September 30, 2009 were Rs. 8.04 ($0.17(1)), representing an increase of 20% over the same period last year. Non-GAAP Adjusted Earnings (excluding impact of accelerated amortization of stock based compensation) per Share for our quarter ended September 30, 2009 were Rs. 7.99 ($0.17(1)), representing an increase of 20% over the same period last year.

Reconciliation between IFRS net income and Non-GAAP adjusted net income (excluding impact of accelerated stock based compensation) is provided in the table "Unaudited Condensed Consolidated Interim Statements of Income" below.

IT Services (72% of Total Revenue and 89% of Operating Income for our quarter ended September 30, 2009)

Our IT Services business segment recorded Revenue of Rs. 49.98 billion(2) ($1039 million(1)) for our quarter ended September 30, 2009, representing an increase of 5% over the same period last year. EBIT for this segment was Rs. 11.80 billion ($245 million(1)) for our quarter ended September 30, 2009, representing an increase of 19% over the same period last year.

Our Operating Income to Revenue for this segment was 23.6% for our quarter ended September 30, 2009.

We had 97,891 employees as of September 30, 2009.

Wipro has entered into a multi-year agreement with a leading global pharmaceutical company. Wipro will provide end-to-end infrastructure management (IM) including end-user computing services, networks and security services, data center services, asset management and service desk support. The provision of global support will span across North America, Latin America, East and West Europe and Asia covering 38 countries and 110 locations.

Wipro has entered into a multi-year contract with an iconic beverage company based in Australia for managing, supporting and provisioning the customer's IT infrastructure, data centers, providing Disaster Recovery Services and support of different business applications across Australia, US and Europe. Wipro will use its delivery centers across the globe for rendering these services.

Wipro Technologies has entered into a 5 year agreement with BP to provide IT Applications Development and Maintenance (ADAM) services for BP's Fuels Value Chain and Corporate businesses globally. BP has undertaken a programme to consolidate its IT ADAM vendors and Wipro has been selected as a strategic partner after a rigorous selection procedure which assessed the IT major on its IT capabilities, domain knowledge of the Oil and Gas sector and proven past record of operational transformation for customers.

Wipro will take over the global responsibility for providing Nokia Siemens Networks with application management services for SAP, delivery, marketing and sales, and product data management applications. In addition, over 50 employees are planned to transfer to Wipro.

The India & Middle East geography saw some marquee wins and multi-year deals being signed in this quarter. Wipro and Lavasa entered into a partnership for planning, implementing and managing Information & Communication Technology services across Lavasa city. The strategic partnership is intended to focus on providing integrated and effective solutions for enhancing IT operations within the Hill city.

Wipro entered into a 10 year Total Outsourcing agreement with Delhi International Airport Limited (DIAL) to provide world class IT Infrastructure and Services for Indira Gandhi International Airport (IGIA), New Delhi. The total outsourcing engagement will deliver business IT alignment for DIAL by combining leading airport solutions with Wipro's strong practices of governance, process excellence and integrated service delivery. Wipro is responsible for complete IT management in Terminal 3 of IGIA and will deliver seamless and highly available Airport IT operations.

Analyst References

Wipro was rated 'Positive' in the Market Scope for SOA Consulting and System Integration services, North America in the recently published report by Gartner Inc. (July 31, 2009). This Market Scope assessed 13 consulting and system integration service providers on their service-oriented architecture capabilities in North America. Evaluation criteria include customer experience, market understanding, product/services, market presence and innovation.

Awards and Recognition

Wipro was a winner in the 2009 ASTD (American Society of Training and Development) BEST Awards Competition. Wipro has the unique distinction of having won this award for a sixth year in succession. For this achievement, Wipro has been honoured with an exclusive recognition in a logo which says "ASTD Best Award Winner, 2004-2009"

Wipro figured in the joint second position in the list of Top 5 Green Electronics Brand as per the latest edition of the Greenpeace Guide to Greener Electronics, because of our strong focus on e-waste management and climate control.

Wipro's website was awarded the WebAward "For Outstanding Achievement in Web Development" under the category - Consulting Standard of Excellence by Web Marketing Association.

Wipro won the 2009 Asian MAKE awards. The panel recognized Wipro Technologies for enterprise knowledge sharing and collaboration. Wipro Technologies is a seven-time Asian MAKE Winner.

Reinforcing its position as the largest third party R&D services provider in the world, Wipro was named the No.1 service provider in a comprehensive ranking titled "Global R&D Service Providers' Rating", by Zinnov Management Consulting Pvt. Ltd, a leading management consulting firm.

Wipro was also rated for the first time by Standard & Poor's Rating Services. S&P has assigned Wipro an investment grade rating of "BBB" with a stable outlook, which is higher than India's sovereign rating. This rating was announced by S&P in a press release dated Oct 26, 2009. S&P on assigning the rating cited Wipro's modest financial risk profile, superior cost efficiency, and business and customer diversity in its IT business as its key strengths.

Innovation

Taking its innovation agenda forward, Wipro partnered with Knowledge@Wharton to launch a Global Innovation Tournament. The objective of this unique tournament is to select the best and the most innovative technology-based tools that have the ability to help companies gain a competitive advantage by increasing revenues, cutting costs and improving customer experience.

IT Products (17% of Total Revenue and 5% of Operating Income for our quarter ended September 30, 2009)

Our IT Products business segment recorded Revenue of Rs. 11.85 billion ($247 million(1)) for our quarter ended September 30, 2009, recording a growth of 19% over the same period last year. EBIT for this segment was Rs.