Net profit increased to 11.77 billion rupees ($253.1 million) from 9.73 billion rupees in the last year quarter.
"We are seeing a lot of ground activity," Suresh Senapaty, CFO, Wipro, told reporters after announcing forecast-beating quarterly results. "The pipeline continues to look good.”
The company's results for the quarter are in accordance with International Financial Reporting Standards (IFRS).
The company’s revenue includes those from IT services business, consumer care and lighting businesses in Indian Rupees. It was higher by 5 percent because of exchange rate gains. Individual results for each of the separate services were not available.
Improving environment
The credit crunch has affected India's software exporters considerably in the past few quarters as customers have cut spending on technology and demanded a cut in the prices of various products and services.
However, the mood in the sector is now more positive. "We see more stability in volumes and pricing, as well as an improving demand environment," Wipro's chairman, Azim Premji, said in a statement.
The NYSE-listed company was the third in line to have high profits in the second quarter, succeeded by rivals Tata Consultancy Services Ltd. and Infosys Technologies Ltd. posting a 28.7 percent and 7.5 percent increase respectively.
Wipro earns a lot from overseas projects, particularly from Europe and U.S. Close to half of its sales are from the U.S. and that is a major factor why the IT giant plans to increase its workforce in U.S. It added 37 new clients in the quarter.
Buoyant outlook
Wipro’s shares rose to the highest since February 2007 after beating analyst’s estimates this quarter. It is the best player on the Bombay Stock Exchange today, and has more than doubled this year.
“The guidance has been extremely buoyant; I feel the sector is out of the woods,” said Anu Jain who manages $428 million at Mumbai-based IIFL Private Wealth Management Ltd. “Wipro’s giving a far more true picture rather than just a conservative one,” Jain said, adding she would include the stock in her portfolio for sure.
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