Wipro Business Outlook

Wipro Ltd has announced the following Outlook for the Quarter ending March 31, 2008:

Azim Premji, Chairman of the Company, commenting on the results said -

"The results for the quarter are satisfying. We continue to see good momentum in all our businesses. Revenues from our Global IT Services at $ 910.1 million for the quarter, were ahead of our guidance of $ 905 million. Our Financial Services business grew nearly double digit sequentially during the quarter despite this being challenging times for the sector. We had strong growth in our BPO business and Testing Services. We also had our Retail and Healthcare Verticals growing ahead of our Company growth rate. Our top 10 customers grew at a healthy rate during the quarter and we won a good set of new clients. On the operational front we have seen a 200 basis points increase sequentially in the mix of
our Revenues from Fixed Price Projects. Our price realization improved during the quarter by about 50 basis points sequentially.

Our India, Middle East and Asia Pacific IT business won a large Total Outsourcing deal in the Telecom sector which is representative of the increasing size of deals in the Indian market and of our abilities to offer transformational Solutions to customers. This win clearly indicates the leadership position we enjoy in this segment.

Looking ahead, for the quarter ending March 2008, we expect our Revenue from our Global IT
Services business to be approximately $955 million."

Suresh Senapaty, Chief Financial Officer of the Company, said –

"During the quarter ended December 2007, improved realizations and rationalization of bulge mix helped us fully mitigate the pressure on profitability on account of foreign exchange impact. The drop in our Global IT margins by 100 bps sequentially was primarily on account of our Infocrossing acquisition. We have seen an increase in the number of $ 50 Mn clients and now have our first $ 100 Mn client".

Wipro Q3FY08 Results

Wipro Ltd has announced the following Audited results for the quarter ended December 31, 2007:

The Company has posted a net profit of Rs 8041 million for the quarter ended December 31, 2007 as compared to Rs 7390 million for the quarter ended December 31, 2006. Total Income has increased from Rs 36511 million for the quarter ended December 31, 2006 to Rs 44296 million for the quarter ended December 31, 2007.

The Audited Consolidated results are as follows:

The Group has posted a net profit of Rs 8540 million for the quarter ended December 31, 2007 as compared to Rs 7654 million for the quarter ended December 31, 2006. Total Income has increased from Rs 40552 million for the quarter ended December 31, 2006 to Rs 54332 million for the quarter ended December 31, 2007.

Wipro - Capgemini merger ?

"Wipro Ltd (NYSE:WIT), on behalf of all Companies in the Wipro group, including Wipro Technologies, its global IT services Division, at the request of French Securities Regulatory Autority Autorite des marches financiers (AMF) confirm that they have not recently been, and are not in discussions with and / or in relation to Cap Gemini, the French Euronext listed group, on merger / takeover of Cap Gemini."

Wipro gets outsourcing contract frmo Aircel

Wipro Ltd has announced the press release for intimation of winning the 9 year Total Outsourcing contract from Aircel (a Maxis group Company) by Wipro Infotech, a division of Wipro Ltd.

In this regard the Company has issued the following Press Release:

"Aircel, a Maxis group Company and the fastest growing telecom services player in the country on January 10, 2008 announced that it has awarded a long term next generation business transformation contract to Wipro Ltd.

Aircel currently operates in 10 circles across India and has an estimated 9.5 million subscribers. Aircel is expanding operations in the remaining 13 circles to position itself as a leading full services pan India telecom operator in the near term future. Wipro Infotech, the India, Middle East and Asia Pacific IT Business of the Company, is a leading provider of IT solutions with a comprehensive suite of offerings.

To achieve its pan-India vision, Aircel has re-structured its organization and operational architecture around innovation, scalability and flexibility. By utilizing cutting edge technology, Aircel plans to deliver industry leading customer experience through differentiated services comprising voice, data & multimedia content.

As an integral part of its technology initiatives, Aircel has partnered with the company in a 9 year outsourcing contract. The contract will see the Company deliver next generation business transformation through Business-IT alignment, implementing a future ready IT architecture in accordance with industry standards and deployment of global best practice and tools to sustain comprehensive IT operations over the life of the contract. Business-IT alignment will be achieved through implementation of TeleManagement Forum’s (TM Forum) eTOM framework to deliver measurable KPI’s which can be benchmarked against the global telecom industry, IT Architecture, applications and infrastructure transformation will be delivered using globally accepted standards including TM Forum’s Next Generation OSS (NGOSS). This will deliver a scalable, flexible and secure platform comprising a suite of Industry leading software applications. The platform will allow launch of next generation services including WiMax, Mobile TV and 3G services for Aircel.

In addition, Wipro will deploy component based Service Delivery Platform (SDP) for Aircel to deliver wide range of services including Multi Channel Access, Real Time Information Delivery, Multimedia Content and VAS. This SDP will accelerate launch of services and enhance customer experience with higher efficiencies. The Company will weave together the fabric of transformation using its best practices in service delivery management, transition management & governance.

Suresh Vaswani, President, Wipro Infotech & Global IT service lines said "We are delighted to be partners with Aircel in its growth and transformational journey. Wipro will deliver next generation business transformation for Aircel by creating a futuristic platform to launch innovative, leading edge services and delivering unmatched customer experience. We will combine our global. telecom expertise with our total outsourcing proposition to deliver a seamless service experience. This is a strategic relationship for Wipro and we are committed to making it a showcase in the global telecom industry".

Wipro - MAKE award

Wipro Ltd has informed that Wipro Technologies, the global IT services business of the Company on November 27, 2007 announced that it has been recognized as a winner of the 2007 Global MAKE Award and was ranked first in the Information Technology sector in 'Creating an environment for collaborative knowledge sharing' and 'Creating a learning organization' categories, thereby delivering value based on customer knowledge MAKE stands for Most Admired Knowledge Enterprises and the awards were established in 1998. This is the second time that Wipro Technologies has been recognized as a Global MAKE winner.

The MAKE Winners are chosen by a panel of Fortune 500 business executives and leading knowledge management and intellectual capital experts after an initial short-listing based on nominations by the panel. The Global MAKE study recognizes organizations which are world leaders in creating shareholder wealth (or in the case of public and non-profit organizations, increasing societal capital) by transforming new as well as existing enterprise knowledge and intellectual capital into superior products / services / solutions. The awards are administered by Teleos, an independent knowledge management and intellectual capital research firm.

Wipro Technologies has also won the 2007 Asian MAKE Award, fifth time in a row, which was presented in a glittering ceremony in the World Knowledge Forum held at Seoul, South Korea on October 18th.

Expressing happiness at these recognitions for Wipro's knowledge initiatives at global, regional and national levels, Mr. Sambuddha Deb, Chief Quality Officer, Wipro Technologies said, "In a knowledge intensive business like IT, effective knowledge management is a significant business differentiator especially as we are diversifying our presence globally. These recognitions are an affirmation of our strategy to make Wipro a true learning organization".

In addition, Wipro Technologies also received the 2007 Indian MAKE Award third time in a row in KM India 2007 organized by CII (Confederation of Indian Industry) at New Delhi on November 14th.

Ved Prakash, Head of Knowledge Management at Wipro Technologies said, "We are very pleased that Wipro has also been inducted into the 2007 Global MAKE Hall of Fame which is an elite group of organizations that have been Global MAKE Finalists in each of the past five studies. This is an affirmation of the mature KM practices in Wipro that are on par with the best in the world."

Wipro Technologies has been running a structured Knowledge Management program since the year 2000 which ensures that all of its 75000 plus employees across the globe have access to the deep expertise lying within the organization. Wipro has implemented a web-enabled portal built on Microsoft Sharepoint to manage documented knowledge and operate virtual communities of practice. The Global MAKE study has found that knowledge-driven organizations significantly out-perform their competitors.

Wipro Q2 Results

Wipro Ltd has announced the following Audited results for the quarter ended September 30, 2007:

The Company has posted a net profit of Rs 7603 million for the quarter ended September 30, 2007 as compared to Rs 6652 million for the quarter ended September 30, 2006. Total Income has increased from Rs 33752 million for the quarter ended September 30, 2006 to Rs 42450 million for the quarter ended September 30, 2007.

The Consolidated results are as follows:

The Group has posted a net profit of Rs 8237 million for the quarter ended September 30, 2007 as compared to Rs 7002 million for the quarter ended September 30, 2006. Total Income has increased from Rs 36270 million for the quarter ended September 30, 2006 to Rs 48836 million for the quarter ended September 30, 2007.

Wipro Guidance

Azim Premji, Chairman of Wipro, commenting on the results said -

"The results for the quarter demonstrate strong execution by Team Wipro on all fronts. Revenues from our Global IT Services at $796.5 million for the quarter, including Revenues of $6.4 million from Infocrossing, were ahead of our guidance of $ 777 million. We saw broad-based growth across Verticals, Services and Geographies. During the quarter, we won some large multi-million dollar deals and the deal pipeline continues to be robust. Building out its theme of benefiting clients through Applied Innovation, Wipro partnered with global industry bodies to launch the first ever global awards to recognize best practices in co -innovation and global sourcing. Wipro completed its landmark Infocrossing acquisition through a successful tender offer.

Looking ahead, for the quarter ending December 2007, we expect our Revenue from our Global IT Services business to be approximately $905 million, including Revenues of around $60 million from acquisitions."

Suresh Senapaty, Chief Financial Officer of Wipro, said-

"Our performance on profitability demonstrates the resilience of our business model. Improved Realizations and superior management of key operating parameters like Offshore mix, Utilization and Bulge helped us not only fully mitigate the adverse impact on account of Offshore salary increases but also deliver an Operating Margin expansion of 80 basis points".

Wipro and Nokia Siemens signup contract

Wipro Ltd has informed about the signing of R&D partnership contract in Germany by Nokia Siemens Networks and Wipro Technologies, a division of Wipro Ltd.

In this regard the Company has issued the following Press Release:

"Nokia Siemens Networks and Wipro Technologies, the global IT arm of Wipro Ltd have agreed on the terms and conditions of a business transfer and asset sale of Nokia Siemens Networks radio access related R&D activities in Berlin.

All Radio Access R&D activities currently performed in Berlin are planned to be provided to Nokia Siemens Networks by Wipro technologies in the future. As part of the partnership, 58 employees of Nokia Siemens Networks are planned to be fully integrated into the operations of Wipro Technologies. Through this agreement, Nokia Siemens Networks will leverage Wipro Technologies' global expertise as one of the largest Independent R&D services providers in the world.

"Wipro Technologies has been a valued partner of our parent Companies Nokia and Siemens for many years. We have successfully cooperated with them on various development programs", said An Lehtoranta, Head of the Radio Access Business Unit, Nokia Siemens Networks. "As regards the personnel transferring to Wipro Technologies, they will join a strong partner, where their competencies will be a natural fit. Our customers will see a strengthening of our capabilities to ensure high quality products".

"This partnership will further strengthen Wipro's capabilities and R & D services in the third-generation 3G. This will enhance Wipro's offerings across the wireless network including access, core and service infrastructure," said Ramesh Emani, President, Telecom & product engineering solutions. "This agreement is a key milestone in Wipro's significant relationship with Nokia Siemens Networks while enhancing our presence in Europe".

The transfer of R&D capabilities to trusted business partners is part of Nokia Siemens Networks' overall strategy. This step will allow the Company to realize greater flexibility and improve cost management and enable leveraging of the expertise of the R&D partners.

Wipro is one of the leading players in telecom engineering solutions space, covering wireless, wireline, broadband and enterprise communication, legacy and next generation products. Wipro has been focusing significantly in competency development for next generation radio access technologies.

Nokia Siemens Networks has initiated the appropriate consultation process with the respective bodies of the employee representatives about the terms and conditions of the transfer, in accordance with German labor law and local legal practices."

Wipro Ltd

Wipro Ltd has informed that the Company has entered into a definitive agreement on September 27, 2007 to acquire Oki Techno Centre (Singapore) Pte Ltd over a period of one year. The Target Company is based out of Singapore and is focused on wireless design in the areas of RF (Radio Frequency) and Baseband.

In this regards the Company has issued the following Press Release:

"Oki Electric Industry Co. Ltd. and Wipro Technologies, the global IT services arm of Wipro Ltd on September 27, 2007 has announced their strategic partnership in the area of design services for the semiconductor market. As part of this partnership, Wipro has signed a definitive agreement to acquire Oki Techno Centre Singapore Pte. Ltd (OTCS) including its own Intellectual Property Rights in an all cash deal over a period of one year. Wipro will also establish a dedicated Development Centre for OKI.

OTCS is a wholly owned subsidiary of OKI focused on wireless design and has demonstrated innovative capabilities in RF (Radio Frequency) and baseband design. OTCS is a 40 member center with SGD 8.8 M as the revenues of the fiscal year ended March 31, 2007. The Company has key customers in Japan in product engineering space.

The development center set up by Wipro will enable OKI to utilize design resource efficiently and enhance product development capabilities. This will enable OKI to expand its semiconductor business and increase its competitive edge in designing semiconductor products in the global market.

"OKI has been enhancing its design and development skills to respond to more complex and sophisticated LSIs. We have been looking for a global partner to improve our efficiency in semiconductor design through outsourcing, as we focus on improving our core designing capabilities," said Masahiko Morioka, President or Silicon Solutions Company at Oki Electric industry. "The capability at Wipro will enable OKI to provide high-quality technologies and products to its customers in a timely manner."

Wipro is a leading solutions provider in the semiconductor design services space and has been strengthening its presence by complementing its digital expertise with analog arid RF skills. Wipro's NewLogic acquisition in 2005 strengthened its position in the area of wireless designs in CMOS RF and IPs. The acquisition of OTCS further strengthens our capabilities in RF and baseband design and gives deeper domain strengths in the area of DTV standards, WiMedia UWB, RFID and Wireless LAN 802.11 technology areas.

"The wireless communication IC marketplace today is demanding integrated SoC solutions requiring expertise in digital and RF domain. The acquisition of OTCS is a significant step in our plans to strengthen the leadership in design services in the RF and baseband technology space. The acquisition also provides a solid base for addressing the large market in Japan and East Asia," said Ramesh Emani, President, Telecom and Product Engineering Solutions Division, Wipro Technologies.

The entire transaction is expected to be closed during the next one month. The closing of the transaction is subject to customary closing conditions and regulatory approvals."

Kotak Institutional - Wipro

Kotak Institutional has a price target of Rs 560 on Wipro

Wipro is trading at 20.7XFY2008E earnings and 16.4XFY2009E earnings, a marginal premium to Satyam and 15% discount to Infosys.

Maintain Outperform