Wipro records 43% growth in Total Revenue and 40% growth in Net Income Revenue from Global IT Services & Products business - $ 640.5 million

Business Wire, Jan 17, 2007

Results for the Quarter ended December 31, 2006 under US GAAP

BANGALORE, India & EAST BRUNSWICK, N.J. -- Wipro Limited (NYSE:WIT) today announced financial results under US GAAP for its third fiscal quarter ended December 31, 2006.

Highlights of the Results:

* Total Revenue was Rs. 39.64 billion ($899 million1), representing an increase of 43% over the same period last year.

* Net Income was Rs. 7.45 billion ($169 million1), representing an increase of 40% over the same period last year.

* Global IT Services and Products Revenue was Rs.28.67 billion ($650 million1), representing an increase of 35% over the same period last year.

* Global IT Services and Products Earnings Before Interest and Tax (EBIT) was Rs. 6.83 billion ($155 million1), representing an increase of 32% over the same period last year

* Global IT Services and Products added 37 new clients during the quarter.

Outlook for our Quarter ending March 31, 2007

Azim Premji, Chairman of Wipro, commenting on the results for our quarter ended December 31, 2006 said "We have had another satisfying quarter. Our global IT business delivered good volume growth primarily driven by robust performance of our Energy and Utilities Vertical, Technology Infrastructure Services and Enterprise Application Services. Continuing their good momentum, our Financial Services & Retail businesses delivered more than 50% YOY growth. Manufacturing Vertical & Europe geography posted growth-rates ahead of the Company average. On the operations front we brought down our attrition rates in both the IT and BPO businesses. We are among the first few organizations globally to be assessed at maturity level 5 on the new CMMi V 1.2 model, which was released in September 2006. Looking ahead, for the quarter ending March 2007, we expect Revenue from our Global IT Services & Products business to be approximately $ 685 million."

Suresh Senapaty, Chief Financial Officer of Wipro, said "During the quarter ended December 2006, our Global IT Services & Products Revenue was $ 640.5 million, which was ahead of our guidance of $ 633 million for the quarter. On the margin front, operational improvements and improved profitability in our BPO business and acquisitions portfolio helped us in largely offsetting the pressure on profitability arising out of wage increases and rupee appreciation."

Wipro Limited

Total Revenue for our quarter ended December 31, 2006 was Rs.39.64 billion ($899 million1), representing an increase of 43% over the same period last year. Net Income for our quarter ended December 31, 2006 was Rs. 7.45 billion ($169 million1), representing an increase of 40% over the same period last year. Earnings Per Share for our quarter ended December 31, 2006, were Rs. 5.21 ($0.121), representing an increase of 38% over the same period last year.

Global IT Services and Products (72% of Total Revenue and 89 % of Operating Income for quarter ended December 31, 2006)

Our Global IT Services and Products business segment recorded Revenue of Rs. 28.67 billion2 ($650 million1) for our quarter ended December 31, 2006, representing an increase of 35% over the same period last year. EBIT for this segment was Rs.6.83 billion ($ 155 million1) for our quarter ended December 31, 2006, representing an increase of 32% over the same period last year.

Our Operating Income to Revenue for this segment was 23.8% for our quarter ended December 31, 2006 representing a decrease of 70 basis points compared to the same period last year.

Return on Capital Employed (ROCE) for this segment was 61% for our quarter ended December 31, 2006, compared to 64% for the same period last year.

We had 66,176 employees our Global IT Services and Products business as of December 31, 2006, which includes 49,313 employees in our IT Services and Products business and 16,863 employees in our BPO Services business.

Our Global IT Services and Products business added 37 new clients during the quarter, of which 8 were Global 500 or Fortune 1000 companies, comprised of 13 new Technology clients and 24 new Enterprise clients.

Reinforcing its global leadership positioning in the area of quality and process excellence, Wipro Technologies was assessed at Level 5 of SEI's CMMi Version 1.2. Our best practices in the application of Lean techniques to software engineering were adopted by the Harvard Business School as a case study. Wipro's Technology Infrastructure Management Services (TIS) group emerged as the Top Indian vendor in the "The Forrester Wave[TM]: Global Delivery Infrastructure Management for Europe 2006" - a survey report by Forrester Research, Inc., an independent research firm.

India and Asia-Pac IT Services and Products (17% of Total Revenue and 7% of Operating Income for our quarter ended December 31, 2006)

Our India and Asia-Pac IT Services and Products business segment (Wipro Infotech) recorded Revenue of Rs. 6.7 billion ($152 million1) for our quarter ended December 31, 2006, representing an increase of 74% over the same period last year. EBIT for this segment was Rs. 539 million ($12.2 million1) for our quarter ended December 31, 2006, representing an increase of 39% over the same period last year.