Indian outsourcing powerhouses Wipro and Tata Consultancy Services have both reported strong fourth quarters and stellar yearly results. The announcements came on the heels of a strong quarter reported by Infosys Technologies the week of April 10. Satyam will report its results later this week.
Wipro earned net income of $134 million in its fourth quarter, an increase of 34 percent over the same period a year ago. Total revenue for the quarter was $687 million, up 33 percent over the year-ago quarter.
“The good thing in this quarter is that every part of Wipro did well,” said Ramesh Emani, Wipro president of product engineering services.
For 2005, Wipro, headquartered in Bangalore, India, earned $456 million in net income on total revenue of $2.39 billion, year-to-year increases of 28 percent and 30 percent, respectively.
Like its Indian peers, Wipro is adding several thousand employees every quarter. Emani said the companys work force, now 53,000, is increasing by about 3,000 per quarter.
He said Wipro is currently seeing wage inflation of 8 percent annually, which he said is beneath the industry average of 10 percent.
Wipro scored a coup in the quarter by signing a 10-year, $80 million deal with Indias HDFC bank to manage the banks network. In February, Wipro was the only Indian company to be named as a primary contractor by General Motors, when the auto giant announced the winners in the rebidding of its contracts. Emani said Wipro added 42 new clients in the quarter.
TCS (Tata Consultancy Services) ended its fiscal year with $2.97 billion in revenue and profit of $649 million, year-to-year increases of 36 percent and 41 percent, respectively.
“An outstanding performance in Q4 has rounded off a defining year for TCS, marked by large deals, strategic acquisitions, expansion in size and its transformation into a global corporation,” S. Ramadorai, CEO of TCS, said in a statement.
For its fourth quarter, TCS, which bases its U.S. business in New York, reported total income of $837 million, up 44 percent over the year-ago quarter, and profit of $181 million, a jump of 72 percent over the year-ago quarter. The company said it added 89 new customers and 3,571 new employees in the quarter.