Wipro Ltd., India's one of the largest software exporter has clocked a YoY 130% jump in its net profits to Rs 1 bn in 1QFY01. However quarter over quarter the profits increased by 11%. The Operating margins of the company improved to 21.8%. Wipro’s top 5 Customers accounted for 32% of the revenue for 1QFY01 compared to 39% for year ended March 2000, and 41% for quarter ended June 1999.
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Wipro’s technology division (Global R&D and Telecom Solutions) contributed 48% of the software revenue while the enterprise division accounted for the balance 52%. During the quarter, the telecom domain accounted for 67% of the revenue from the technology division, and e-commerce contributed 27% of the revenue from the enterprise division.
Revenues from Wipro Technologies grew by 82% YoY to Rs 3.6 bn and its profit margins improved to 31%. Wipro Infotech, the Indian IT services and products business and the leader in networking solutions, customer services, computers and peripherals witnessed an increase of 26% in its revenues. While the consumer care and lighting division which accounts for 12% of total sales grew marginally by 1%.
At the current market price of Rs 2,511, Wipro is trading at PER of 133 times its 1QFY01 annualised earnings. The company has premium valuations compared to its peers in the industry.
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