Wipro Records 44% Growth in Net Income and 41% Growth in Total Revenue

Business Wire, April 20, 2007

Results for the Quarter and Year Ended March 31, 2007 Under US GAAP

BANGALORE, India & EAST BRUNSWICK, N.J. -- Wipro Limited (NYSE:WIT) today announced financial results under US GAAP for its fourth fiscal quarter and year ended March 31, 2007.

Highlights

Results for the year ended March 31, 2007

* Total Revenue was Rs. 149.43 billion ($3.47 billion1), representing an increase of 41% over the same period last year.

* Net Income was Rs. 29.17 billion ($677 million1), representing an increase of 44% over the same period last year.

* Global IT Services and Products Revenue crossed Rs. 100 billion mark and was Rs.110.74 billion ($2.57 billion1), representing an increase of 38% over the same period last year.

* Enterprise Solutions Business in Global IT Services segment crossed landmark of $1 billion of annual Revenue and Finance Solutions Business crossed $500 million of annual Revenue

* Global IT Services and Products Earnings Before Interest and Tax (EBIT) was Rs. 26.53 billion ($615 million1), representing an increase of 37% over the same period last year

* Global IT Services and Products added 197 new clients during the year

* Revenue from our India, Middle East and Asia Pacific business crossed $500 million

* Board of Directors recommend a final cash dividend of Rs. 1 ($0.021) per share/ADS, subject to shareholder approval in the Annual General Meeting scheduled in July 2007. This, coupled with interim dividend of Rs. 5 ($0.121) per share, will take total dividend to Rs. 6 ($0.141) per share

Results for the quarter ended March 31, 2007

* Total Revenue was Rs. 43.34 billion ($1 billion1), representing an increase of 42% over the same period last year.

* Net Income was Rs. 8.61 billion ($200 million1), representing an increase of 44% over the same period last year.

* Global IT Services and Products Revenue was Rs. 30.42 billion ($706 million1), representing an increase of 32% over the same period last year.

* Global IT Services and Products Earnings Before Interest and Tax (EBIT) was Rs. 7.13 billion ($165 million1), representing an increase of 26% over the same period last year

* Global IT Services and Products added 44 new clients during the quarter.

Performance for the Year ended March 31, 2007 and Outlook for our Quarter ending June 30, 2007

Azim Premji, Chairman of Wipro, commenting on the results said "All our business segments contributed to the strong growth in Revenues and Profits during FY2006-07. During the year, we completed strategic acquisitions, expanded local sales foot-print, built deeper domain skills and sharpened our account management focus. We enhanced our Global Delivery capabilities through centres in Romania, Brazil and Portugal. Encouraged by our early success, we launched more projects under the Quantum Innovation Umbrella that are focused on creating non-linear growth opportunities, superior delivery structures and new business opportunities. Our Indian IT Services & Products Business, Our Consumer Care & Lighting Business and our Infrastructure Engineering Business also delivered industry leading growth rates. Given the exciting prospects in all our business segments, we look forward to 2007-08 and beyond with excitement. Looking ahead, for the quarter ending June 2007, we expect our Revenue from our Global IT services business to be approximately $711 million."

Suresh Senapaty, Chief Financial Officer, said "During the quarter ended March 31 2007, we delivered Revenues of $690.7 million ahead of our guidance of $685 million. We continued to see robust growth momentum in our differentiated Services - Business Process Outsourcing (BPO), Enterprise Application Services and Technology Infrastructure Services. Increase in billing rates and improved profitability in our acquisitions and BPO significantly offset adverse impacts of Onsite wage hikes and exchange rate movement on profitability. Operating Margins of our acquisitions portfolio improved by more than 1100 basis points sequentially. We are happy to share that all our acquisitions have reported profits for the quarter ended March 31, 2007. For the full year FY07, we have delivered a margin of 24% in our Global IT business, in a narrow range of that of FY05-06, despite significant investments in acquisitions and sales & marketing."

Wipro Limited

Total Revenue for our year ended March 31, 2007 was Rs.149.43 billion ($3.47 billion1), representing an increase of 41% over the same period last year. Net Income for our year ended March 31, 2007 was Rs. 29.17 billion ($677 million1), representing an increase of 44% over the same period last year. Earnings Per Share for our year ended March 31, 2007 were Rs. 20.44 ($0.471), representing an increase of 42% over the same period last year.

Total Revenue for our quarter ended March 31, 2007 was Rs. 43.34 billion ($1 billion1), representing an increase of 42% over the same period last year. Net Income for our quarter ended March 31, 2007 was Rs. 8.61 billion ($200 million1), representing an increase of 44% over the same period last year. Earnings Per Share for our quarter ended March 31, 2007 were Rs. 6.01 ($0.141), representing an increase of 42% over the same period last year.