Friday, January 21, 2011

Q3 attrition down by 2%; see further decline: Wipro

Wipro surprised markets with the resignations of the joint-CEOs of its information technology business, after reporting profit growth rates which lagged rivals Infosys Technologies and Tata Consultancy Services.

India's third-largest software services exporter said company veteran TK Kurien was taking over as the new chief executive of the unit.

The company's net profit for the third quarter of fiscal year 2011 grew 3.4% on quarter-on-quarter basis. The number stood at Rs 1,319 crore as against Rs 1,276 crore reported last quarter. Its consolidated revenues too went up to Rs 7,829 crore from Rs 7,731 crore and dollar denominated global IT revenues rose 5.6% to USD 1.34 billion (QoQ).

Commenting on the company's performance, the newly appointed CEO of the IT business TK Kurien along with the company’s executive director and chief financial officer Suresh Senapaty, and HR head Pratik Kumar, said they expected growth to return in 2011.

"With the environment for the IT sector looking positive, we are confident of growth despite tepid volumes in the previous quarter," the management said, adding that the attrition rate for the quarter was down by 2%, and it saw further decline there.

On the move to have one CEO for the IT unit, the management said the structure of a single CEO was more appropriate for coming years.

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