Wipro Limited (NYSE:WIT) today announced financial results under US GAAP for its first fiscal quarter ended June 30, 2008.

Highlights of the Results:
* Total Revenues were Rs. 59.62 billion ($1.39 billion1), representing an increase of 43% over the same period last year.
* Net Income was Rs. 8.14 billion ($190 million1) on a GAAP basis, representing an increase of 15% over the same period last year.
* Non-GAAP Adjusted Net income (excluding impact of currency translation on foreign currency loan, related cross currency swap and India fringe benefit tax) was Rs. 8.85 billion ($206 million1), representing an increase of 25% over the same period last year.
* IT Services Revenues were Rs. 43.93 billion ($1023 million1), representing an increase of 40% over the same period last year.
* IT Services Earnings Before Interest and Tax (EBIT) was Rs. 8.82 billion ($205 million1), representing an increase of 35% over the same period last year.
* IT Services added 31 new clients in the quarter.
* IT Products recorded a 53% growth in Revenues over the same period last year.
* Consumer Care and Lighting Revenue grew 114% over the same period last year and EBIT grew 98%.

Performance for the Quarter ended June 30, 2008 and Outlook for our Quarter ending September 30, 2008 Azim Premji, Chairman of Wipro, commenting on the results said – “We have had another satisfying quarter. Revenues from our IT Services were $1,067 million for the quarter, ahead of our guidance of $1,060 million. In the backdrop of significant economic uncertainty, our Financial Services and Retail businesses demonstrated their resilience. We had strong growth in our differentiated Service lines like Testing, TIS and BPO. Our strategy of focusing on MEGA/GAMA accounts is delivering results with top customers growing ahead of company average. We improved on several of operational parameters during the quarter.

Given the environment, we remain cautious in the near-term. Looking ahead, for the quarter ending September 2008, we expect our Revenue from our IT Services business to be approximately $1089 million.”

Suresh Senapaty, Chief Financial Officer of Wipro, said – “During the quarter ended June 2008, we were able to sustain margins in spite of Restricted Stock Units grants. Rate Realization and Utilization improved sequentially by 300 basis points and 50 basis points respectively. We have won 7 multi-year multi-million dollar deals and added 31 new customers during the quarter. We added another customer to our $100 million customer list.”

Wipro Limited

Total Revenue for our quarter ended June 30, 2008 was Rs. 59.62 billion ($1.39 billion1), representing an increase of 43% over the same period last year. Net Income for our quarter ended June 30, 2008 on GAAP basis was Rs.8.14 billion ($190 million1), representing an increase of 15% over the same period last year.

Net Income for our quarter ended June 30, 2008 on an Adjusted Non-GAAP basis (excluding impact of currency translation on foreign currency loan, related cross currency swap and India fringe benefit tax) was Rs. 8.85 billion ($206 million1), representing an increase of 25% over the same period last year. Earnings per Share on the GAAP basis for our quarter ended June 30, 2008 were Rs. 5.60 ($0.131), representing an increase of 14% over the same period last year. Non-GAAP Adjusted Earnings (excluding impact of currency translation on foreign currency loan, related cross currency swap and India fringe benefit tax) per Share for our quarter ended June 30, 2008 were Rs. 6.1 ($0.141), representing an increase of 24% over the same period last year.

Reconciliation between GAAP net income and non-GAAP adjusted net income (excluding impact of currency translation on foreign currency loan, related cross currency swap and India fringe benefit tax)

IT Services (74% of Total Revenue and 90% of Operating Income for our quarter ended June 30, 2008)

Our IT Services business segment recorded Revenue of Rs. 43.93 billion2 ($1023 million1) for our quarter ended June 30, 2008, representing an increase of 40% over the same period last year. EBIT for this segment was Rs. 8.82 billion ($205 million1) for our quarter ended June 30, 2008, representing an increase of 35% over the same period last year.

Our Operating Income to Revenue for this segment was 20.1% for our quarter ended June 30, 2008.

We had 95,675 employees as of June 30, 2008, which includes 74,838 employees in our IT business unit and 20,837 employees in our BPO business unit. Our IT Services business added 31 new clients during the quarter, of which 4 were Global 500 / Fortune 1000 companies.

Wipro is helping a Large European Energy Equipment Manufacturer in their next generation application management initiative. This engagement will cover business solutions supporting the North American division of the customer, including Manufacturing, Sales and Services, Finance and Control, Product management and Marketing. As part of the engagement, Wipro will provide the customer with real-time information on the performance and health of the IT application platform and improve the overall operational efficiency.

2 IT Services business segment Revenue was Rs. 44.04 billion for the quarter ended June 30, 2008 under the Indian GAAP. The difference of Rs. 112 million ($2.6 million1) is primarily attributable to differences in accounting standards under Indian GAAP and US GAAP.

A Worldwide leader in the manufacture of high-quality audio and electronic products chose Wipro for providing end to end management of its IT Infrastructure across Americas, Europe and Asia Pacific. This multi million dollar engagement spans 7 years.

Wipro was chosen as the Key strategic partner by a Global Apparel & Footwear manufacturer for a wide spread of their application landscape. Some of them involve holistic support for their critical global systems in the B2B space, Sales order capture, all supporting transactions and its associated reporting needs, which form a part of the customer’s strategic visioning and internal development of their robust sales systems.

A Global integrated Steel major has engaged Wipro as the system integration partner for transforming its core manufacturing execution business solution. Wipro will program manage this initiative to implement consolidated and simplified business processes targeted towards inventory reduction. The program will entail redesign of the shop floor process including Planning & Scheduling and Production Execution along with IT application rationalization.

Wipro is designing and deploying a solution to enable supply chain visibility for a large automotive Original Equipment Manufacturer (OEM). This solution is designed to bring in a unified global process for tracking vehicles once they leave the factory on intercontinental transport till they reach the dealers. These applications are scalable for the future growing needs of the OEM and planned to be deployed across geographies.

In the transportation Industry group, Wipro won a large deal from one of the leading Mail & Express company in Europe. This is a multi-million dollar 5 year deal consisting of SAP Finance and Procurement Support , SAP HR Rollout & Support and SAP FSCM implementation Rollout.

Wipro is also providing Global Support for SAP applications for a Leading Alcoholic Beverages company deploying the Flexible Delivery Model. This has enabled faster ramp up and ramp down as per business demand, wider shift coverage, better service levels, and higher productivity gain for the customer at an optimized cost.

Wipro Arabia won a large multi-million dollar turnkey IT Solutions and Infrastructure Services project from a leading Govt. owned technology institute based in the Middle East. Other key wins in the Indian market for the quarter include a 10 year Total Outsourcing Contract with a large realty company, a comprehensive SAP implementation suite at a large public sector enterprise, an end-to-end Data Warehousing Implementation at a large PSU Bank and Infrastructure Integration & Management contracts from a large Retail chain.

Applied Innovation

As a part of its effort for continuous Innovation in delivery, Wipro has invested in outcome based models and we are seeing increased customer interest. This result based model has inherent benefits like improvement in service levels and end-user experience. FlexDelivery is one such model for managing enterprise applications and we now have six clients using this model out which three were added in the last quarter.

We launched Cigma (Center for Integrated Global Management of Applications), offering a 360 degree Services capability for managing the application landscape of an enterprise spread across the globe. This service offers the unique capability of providing an outcome based model based on SLA’s (service level agreements) as well as BLA’s (business level agreements) to customers. Cigma is currently made available to clients in the manufacturing space.

Taking the message of Applied Innovation further, Wipro pioneered Innovative Green practices to hold a global carbon neutral event-“Mandala”. Mandala is a global customer forum where Wipro’s customers, thought leaders and senior management meet to debate, exchange ideas and share best practices in key areas that will shape the future of the global industry. Wipro also announced its membership in The Green Grid, a global consortium dedicated to advancing energy efficiency in data centers and business computing ecosystems.

Awards and Recognition:

Wipro won the SAP Pinnacle Award for thought leadership around enterprise SOA. This global award recognizes partners who make exemplary contribution to SAP’s ecosystem.

This quarter, Wipro was also recognized by Emerson Rosemount as top IT partner for Continuous Improvement in the areas of Quality, Speed, Flexibility, Service, Technology, and Cost. Wipro is the only IT Services Company till date that has been recognized by Emerson.

Wipro was awarded the Top Network Integrator award for the fourth consecutive year by Voice and Data, and was also ranked as the best APAC partner by Netapp.

Wipro was won the Partner of the year award from IBM and the Fastest growing Solution Partner award for Asia Pacific from Packeteer.

IT Products (12% of Total Revenue and 3% of Operating Income for our quarter ended June 30, 2008)

Our IT Products business segment recorded Revenue of Rs. 6.96 billion ($162 million1) for our quarter ended June 30, 2008, representing an increase of 53% over the same period last year. EBIT for this segment was Rs. 305 million ($7.1 million1) for our quarter ended June 30, 2008. Our Operating Income to Revenue for this segment was 4.4% for our quarter ended June 30, 2008. Return on Capital Employed (ROCE) for our IT services and Products segment was 37% for our quarter ended June 30, 2008, compared to 44% for the same period last year.

Consumer Care and Lighting (8% of Total Revenue and 6% of Operating Income for our

quarter ended June 30, 2008)

Our Consumer Care and Lighting business segment recorded Revenue of Rs. 4.75 billion ($111 million1) for our quarter ended June 30, 2008, representing an increase of 114% over the same period last year. EBIT for this segment was Rs. 605 million ($14 million1) for our quarter ended June 30, 2008, representing an increase of 98% over the same period last year.

Our Operating Income to Revenue for this segment was 12.7% for our quarter ended June 30, 2008. ROCE for this segment was 13% for our quarter ended June 30, 2008, compared to 40% for the same period last year.

On April 18, 2008, the Company announced changes to the management structure of IT Business and appointed Joint CEO’s to head the IT business. Consequent to this re -organization, the Company identified IT Services and IT Products as the reportable segments relating to the IT businesses. There is no change in the reportable segments for other businesses. Segment information in respect of earlier period has been revised to conform to the presentation as per new reportable segments.

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