Wipro Records 28% Growth in Net Income; Combined IT Business Revenues Surpass $2 Billion Landmark; Results for the Year Ended March 31, 2006 Under US GAAP

Business Wire, April 19, 2006

BANGALORE, India & MOUNTAIN VIEW, Calif. -- Wipro Limited (NYSE:WIT) today announced financial results under US GAAP for its fourth fiscal quarter and year ended March 31, 2006.

Highlights

Results for the year ended March 31, 2006

--Net Income was Rs. 20.27 billion ($456 million(1)), representing an increase of 28% over last year.

--Total Revenue was Rs. 106.11 billion ($2.39 billion(1)), representing an increase of 30% over last year.

--Global IT Services & Products Revenue was Rs.80.51 billion ($1.81 billion(1)), representing an increase of 33% over last year.

--Global IT Services & Products Earnings Before Interest and Tax (EBIT) was Rs. 19.41 billion ($436 million(1)), representing an increase of 23% over last year.

--Cash generated from continuing operations was Rs. 20 billion ($450 million(1)).

--Our Board of Directors also recommends a cash dividend payable to the holders of our equity shares and American Depository Shares (ADS) of Rs. 5 per share/ADS, subject to shareholder approval at our Annual General Meeting scheduled to occur in July 2006.

Results for the quarter ended March 31, 2006

--Net Income was Rs. 5.97 billion ($134 million(1)), representing an increase of 34% over the same period last year.

--Total Revenue was Rs. 30.54 billion ($687 million(1)), representing an increase of 33% over the same period last year.

--Global IT Services & Products Revenue was Rs.23.10 billion ($519 million(1)), representing an increase of 39% over the same period last year

--Technology Business in Global IT Services & Products segment crossed landmark of $500 million annual Revenues

--Global IT Services & Products Earnings Before Interest and Tax (EBIT) was Rs. 5.66 billion ($127 million(1)), representing an increase of 30% over the same period last year

--Global IT Services & Products added 42 new clients during the quarter.

Outlook for the Quarter ending June 30, 2006

Azim Premji, Chairman of Wipro, commenting on the results, said, "We look back at our performance in 2005-06 with immense satisfaction. It was a year in which we crossed several landmarks -- including Rs. 100 billion in Total Revenues, $2 billion mark in IT businesses Revenues, Rs. 5 billion of quarterly profits, team size of 50,000 and 5% Revenue contribution from Innovation Initiatives. With all Wipro businesses delivering industry-leading growth rates, we were able to post record Revenue and Profit growth. The IT Services industry is evolving from an era of routine Service Provisioning to one of Innovative Knowledge creation. The strategic initiatives we propose to undertake as part of our plan over the next few years position us well to lead this evolution. Given the exciting prospects in all our business segments and combined with our growth-oriented strategic road-map, we look forward to 2006-07 and beyond with excitement and enthusiasm. Looking ahead, for the quarter ending June 2006, we expect our Revenue from our Global IT services business to be approximately $533 million."

Suresh Senapaty, Chief Financial Officer, said, "During the quarter ended March 2006, we continued to see broad-based Revenue growth with our differentiated Services -- Testing and Technology Infrastructure Services -- continuing to deliver significantly higher growth rates. On margin front, improved price realizations, higher utilization, increased proportion of Offshore projects and continued improvements in BPO profitability helped in significantly offsetting the acquisition related pressure on profitability and compensation revision for our Onsite staff and led to Operating Margin expansion sequentially."

Wipro Limited

Total Revenues for the year ended March 31, 2006, were Rs. 106.11 billion ($2.39 billion(1)), representing an increase of 30% over last year. Net Income for the year ended March 31, 2006 was Rs. 20.27 billion ($456 million(1)), representing an increase of 28% over last year. Earnings per share was Rs. 14.41 ($0.32(1)) for the year ended March 31, 2006, representing an increase of 27% over our Earnings Per Share of Rs. 11.38 for last year (as adjusted for stock divided paid in August 2005).

Total Revenues for the quarter ended March 31, 2006 were Rs.30.54 billion ($687 million(1)), representing an increase of 33% over the same period last year. Net Income for the quarter ended March 31, 2006 was Rs. 5.97 billion ($134 million(1)), representing an increase of 34% over the same period last year. Earnings Per Share was Rs. 4.22 ($0.1(1)) for the quarter ended March 31, 2006, representing an increase of 32% over our Earnings Per Share of Rs.3.20 for the same period last year (as adjusted for stock divided paid in August 2005).

Global IT Services and Products (76% of Revenues and 88% of Operating Income for year ended March 31, 2006)

Our Global IT Services and Products business segment recorded Revenues of Rs. 80.51 billion(2) ($1.81 billion(1)) for the year ended March 31, 2006, representing an increase of 33% over last year. EBIT was Rs.19.41 billion ($ 436 million(1)) for the year ended March 31, 2006, representing an increase of 23% over last year. Operating Income to Revenue for the year ended March 31, 2006 was 24.1%, representing a decrease of approximately 200 basis points from last year. This decrease was primarily due to lower utilization of employees, increase in compensation costs and lower realizations for the work performed onsite. Return on Capital Employed (ROCE) for the year ended March 31, 2006 was 55% compared to 60% for last year.