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Strong Outsourcing Sales Drive Wipro Earnings

The company is the latest Indian IT services provider to report rapid sales growth.
Bolstered by the growing volume of IT work U.S. businesses are shipping to low-cost countries, Indian IT service provider Wipro Technologies reported strong financial results for its fourth quarter and fiscal year ended March 31.

For the year, Wipro's revenue increased 39% to $1.87 billion. Net income rose 58% to $363 million, and per-share earnings climbed 58% to 52 cents. For the quarter, revenue increased 30% to $526 million, net income jumped 37% to $103 million, and earnings per share gained 36% to 15 cents.

Wipro officials said the company's annual results were boosted by strong outsourcing sales to Western businesses. Such sales increased 40% to $1.39 billion. Looking ahead, Wipro said it expects sales of IT products and services to total about $395 million in the current quarter. The outlook does not factor in sales from Wipro's relatively small consumer-care and lighting businesses.

Wipro is the latest major Indian IT services vendor to report booming sales. India's four largest outsourcing companies--Wipro, Infosys Technologies, Satyam Computer Services, and Tata Consultancy Services--have reported average sales growth of 39.2% for the most recent fiscal year.