Wipro Infotech our India and Asia Pacific IT business recorded revenue of Rs

Wipro infotech our india and asia pacific it business

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Wipro Infotech, our India and Asia-Pacific IT business recorded revenue of Rs. 1.72 billion equivalent $36 million, a decline of 26% year-on-year. Excluding peripherals business, which was part of the Wipro Infotech, that was spun off as a separate company in September 2000, revenue declined by 15%. Operating income was Rs. 127 million equivalent $3 million, 7.4% of revenue; revenue was Rs. 743 million equivalent $16 million; and profit before interest and tax Rs. 110 million equivalent $2 million in consumer and lighting business. Other segments had a revenue of Rs. 412 million equivalent $9 million. The salient features of performance in Wipro Technologies, our global IT business for the quarter are; 10% sequential growth in revenue arising from 28% sequential growth in Europe and 9% sequential growth in Japan. Sequential growth in US of revenue for the quarter was flat. Our Lattice Group systems integration project win is progressing ahead of schedule. We received in advance of $10 million on this project from the customer during the quarter. Revenue from this project for the quarter is $10 million. During the quarter, we added 26 new accounts, including 10 who are in fortune 1000 list. We added from US 16 accounts, Europe 5, and Japan 3, and 2 from the rest of the world. Eleven clients were added in the month of September. The accounts over 5 million run rate increased sequentially from 22 to 24, and greater than $1 million run rate increased sequentially from 74 to 81. On the margin front, increase in on-site business by 2% to 52% on the services income, and bought out items contributing 7% of the revenue had an impact of lowering the margin while increase in rate realization by 4.8% enhanced the margin. The net result was a decline in operating margin by 3% to 33% in this quarter, from 36% in the quarter ended June 2001. Utilization for the quarter was at the same level of 60% as in the quarter ended June 2001, 60% being measured on the total head count and the total bills. We added 111 employees in the quarter while 495 employees separated from the company, which includes voluntary and performance-based separation. Receivables number of days has improved by 7 days from 65 in Q1 to 58 days at the end of Q2, reflecting the quality of our client base and the focus on receivables management in the business. Total capital employed has come down by 10% sequentially, driven by significant reduction in working capital. Wipro Infotech our India and Asia-Pacific IT Business, in its tough domestic market environment grew their revenue sequentially by 26% to Rs. 1.72 billion equivalent $36 million and earned operating income at 7.4% of revenue at Rs. 127 million equivalent $3 million for the quarter. In Wipro Infotech, sequential increase in operating margins from 5.2% to 7.4% in this quarter was as a result of a 39% increase in product sales. During the quarter, our IT consulting and software solutions practice won 18 new orders. Receivables number of days was 59 for this quarter, an improvement of 16 days over the receivables for the quarter ended June 2001.
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Consumer Care and Lighting business recorded revenue of Rs. 743 million equivalent $16
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