Wipro’s 2008 Q2 Numbers
July 26, 2008 – 11:42 pm- Hourly price realizations averaged $70.12 for on-site work (up 3.9% QoQ and 5.4% YoY) and $23.79 for offshore (up 3.0% QoQ and 4.5% YoY).
- Billed volume rose 2.2% QoQ and 24% YoY.
- Utilization (excluding trainees) stood at 78.3% vs. 75.2% a year ago.
- Higher-margin offshore work contributed 46.1% of service revenue vs. 45.8% in the March quarter.
- Global headcount rose just 0.1% QoQ and 16% YoY to 95,675 in June.
- Attrition improved to 16.6% from 20.1% a year ago.
- Technology, Media & Telecom ranked largest (31% of IT Services revenue), followed by Financial Services (25%), Manufacturing & Healthcare (19%), Retail & Transportation (16%) and Energy & Utilities (9%).
- Top-10 clients accounted for 20.9% of IT Services revenue, up from 20.8% in the March quarter.
- Wipro has 14 clients (vs. 11 in March) with an annual revenue run-rate of $50+ million, 33 (vs. 33) with $20-50 million and 33 (vs. 36) with $10-20 million.
- Wipro added 31 new IT Services clients – including four from the Fortune-1000 – compared with 48 in the immediately prior period. It exited the quarter with an active roster of 928, up from 927 in March.
Wipro Differentiators:
- Newer service lines. These comprise Testing, BPO, Infrastructure Management and Package Implementation, which recorded 36-49% YoY growth in fiscal 2008 and contributed 48% of total revenue vs. 38% in the preceding year.
- The largest third-party R&D business worldwide (18K employees). Wipro caters to the design and innovation needs of leading wireless, imaging, computer and semiconductor manufacturers.
- Wipro Infotech, a pioneer in the emerging Indian and Middle-East markets with annual revenue approximating $1 billion.
- Recent acquisitions valued in excess of $1 billion that have substantially enhanced domain competence and global reach.
Wipro Priorities:
- Assemble a comprehensive portfolio of outsourcing services.
- Increase focus on larger, more complex engagements.
- Enhance near-shore capabilities in response to client requirements.
- Leverage consulting to accelerate growth.
- Partner with global technology leaders to create solutions, e.g., Cisco (CSCO), EMC (EMC), Microsoft (MSFT), SAP (SAP) and Oracle (ORCL).
