Wipro overhauls management, makes 10 percent more profit
By ANISaturday, January 22, 2011
BANGALORE - Announcing major changes in the line up of its management, Wipro, India’s premier information technology company declared its annual financial score card here on Friday.
In a statement, Wipro said fiscal third-quarter net profit rose 10 percent to Rs. 13.19 billion under international accounting standards from 12.03 billion a year ago, matching forecasts.
Wipro, which also makes computer hardware, consumer care products and electric bulbs, posted revenue of Rs. 78.3 billion in the quarter, compared to analysts’ estimates of Rs. 80.1 billion.
Suresh Senapaty, Chief Financial Officer of Wipro, forecast a hike in IT services revenue from 1.38 billion dollars to 1.41 billion dollars for the fiscal fourth quarter, up three to five percent from the quarter ended in December.
“If you look at the overall highlight of IT services, a very-very sustained demand momentum we have seen. Reported revenue was 1,344 million dollars which is a sequential growth of 5.6 percent. If you look at the overall margin perspective, strong revenue productivity drives growth,” said Senapaty.
Wipro also revealed that co-CEOs of the IT unit, Girish Paranjpe and Suresh Vaswani, would resign effective from January 31 and be replaced by company veteran T.K. Kurien to make the structure of the simpler organization.
Reflecting on Wipro’s management revamp, Company chairman Azeem Premji said it was the need of the hour.
“We find that the market opportunity now is again exploding. We think a simpler structure, a faster structure, a linear structure and a different leadership is required to be fully in a position of building leadership in this revised structure. This is why we have reconfigured the organisation in terms of a major organisational change,” said Premji. (ANI)
