FILE - In this Monday, Jan. 7, 2013, file photo, a man walks past the Intel booth at the International Consumer Electronics Show in Las Vegas.. Intel Corp., the world's largest chipmaker, on Thursday, Jan. 17, 2013, said its fourth-quarter net income fell 27 percent from the previous year, as PC sales continued to weaken. (AP Photo/Jae C. Hong, File)
-
FILE - In this Monday, Jan. 7, 2013, file photo, a man walks past the Intel booth at the International Consumer Electronics Show in Las Vegas.. Intel Corp., the world's largest chipmaker, on Thursday, Jan. 17, 2013, said its fourth-quarter net income fell 27 percent from the previous year, as PC sales continued to weaken. (AP Photo/Jae C. Hong, File)
-
FILE - In this July 27, 2007, file photo, signs for American Express, Master Card and Visa credit cards are shown on a New York store's door. American Express says its net income fell 47 percent in the fourth quarter of 2013, as the credit card issuer racked up hefty charges related to restructuring costs and other one-time expenses. (AP Photo/Mark Lennihan, File)
-
A woman holding her Cuban passport lines up with others at a migration office in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices, as a highly anticipated new law took effect Monday, ending the island's much-hated exit visa requirement. The measure means the end of both real and symbolic obstacles to travel by islanders, though it is not expected to result in a mass exodus. Most Cubans are now eligible to leave with just a current passport and national identity card, just like residents of other countries. (AP Photo/Ramon Espinosa)
-
People line up at a migration office in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices, as a highly anticipated new law took effect Monday, ending the island's much-hated exit visa requirement. The measure means the end of both real and symbolic obstacles to travel by islanders, though it is not expected to result in a mass exodus. Most Cubans are now eligible to leave with just a current passport and national identity card, just like residents of other countries. (AP Photo/Ramon Espinosa)
-
Ivan Lee, 12, says goodbye to a family member before traveling to Miami, Florida, where he will reunite with his mother who has been living there for years, as he prepares to board a plane at the Jose Marti International Airport in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices on Monday, as a highly anticipated new law took effect ending the island's much-hated exit visa requirement. The new law also extends the amount of time Cubans can remain abroad without loosing their Cuban citizenship. Before the law, Cubans had to return within 11 months, but now can remain 24 months abroad, and are eligible for extensions. (AP Photo/Ramon Espinosa)
-
A woman shades herself with her documents as she waits outside the U.S. Interests Section to apply for U.S. visas in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices, as a highly anticipated new law took effect Monday, ending the island's much-hated exit visa requirement. In October, the Interests Section more than doubled its capacity for processing nonimmigrant visa applications, and the wait time for an interview has fallen from nearly five years to less than a year, according to U.S. diplomats. (AP Photo/Ramon Espinosa)
-
People wait in a line that continues on to the sidewalk, to buy plane tickets at a small travel agency in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices on Monday, as a highly anticipated new law took effect ending the island's much-hated exit visa requirement. (AP Photo/Ramon Espinosa)
-
People wait to enter the U.S. Interests Section to apply for U.S. visas in Havana, Cuba, Monday, Jan. 14, 2013. Cubans formed long lines outside travel agencies and migration offices, as a highly anticipated new law took effect Monday, ending the island's much-hated exit visa requirement. In October, the Interests Section more than doubled its capacity for processing nonimmigrant visa applications, and the wait time for an interview has fallen from nearly five years to less than a year, according to U.S. diplomats. (AP Photo/Ramon Espinosa)
Wipro profit up 18 percent on strong demand
MUMBAI, India (AP) —
Wipro reported an 18 percent rise in December quarter profits Friday, beating expectations as global cost-cutting drives global businesses to Indian outsourcing companies.
India's third-largest outsourcer said it earned 17.2 billion rupees ($313 million) in the October to December quarter on revenue of 110.3 billion rupees ($2.0 billion), a rise of 10 percent from a year earlier.
Analysts polled by FactSet had forecast net profit of $301 million on revenue of $2.0 billion.
Wipro's rivals Tata Consultancy Services and Infosys also reported strong earnings for the quarter, fueling hopes of a revival in technology spending, despite global uncertainties.
"While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity," chairman Azim Premji said in a statement.
Europe was a bright spot for Wipro, with growth from the region up 7.5 percent from the prior quarter, while business from the Americas slid 0.7 percent.
Wipro said revenue from its core information technology services business grew 4.8 percent from a year earlier to $1.58 billion. The company predicted those revenues would rise by a maximum of 3 percent this quarter, over the December quarter, weighed on by political uncertainty over the U.S. debt ceiling.
Executives said volumes slid in the December quarter from the prior quarter, but prices increased over 3 percent.
The stock was down nearly 5 percent in midday trading in Mumbai, reversing gains made earlier this week.
"The volume performance is much lower than that reported by peers," said Dipen Shah, head of private client group research at Kotak Securities. "We expect the stock to attract better valuations once volume growth starts improving."
Tags:
ap, factset, chairman azim premji, kotak securities, infosys, tata consultancy services, wipro, income, generally accepted accounting principles, quarter, net profit, statement, revenues, technology spending, gains, region, percent, growth, friday, expectations, economic growth, stock, hopes, midday trading, global businesses, business, information technology, europe, peers, percent rise, analysts, mumbai, revenue, united states public debt, strong demand, globalization, volume growth, quarter profits, rupees, strong earnings, bright spot, outsourcing, prior quarter, political uncertainty, services business, u.s. debt ceiling, wipro profit, global cost-cutting drives, indian outsourcing companies, rivals tata consultancy, core information technology, private client group, global uncertainties, global corporations, overall mood, dipen shah, volume performance, better valuations
Print Page
