Wipro Q3 results 2009

IT services revenue based on exchange rate as of September 30, 2008 at $1,126 million, ahead of Wipro guidance of $1,121 million

• Wipro Limited Revenue increased by 25 per cent (YoY) to Rs. 6,618 crore; profit grew by 18% to Rs. 1,004 crore.

• IT Services Revenue in dollar terms was $1,100 million, a sequential decline of 0.9% (growth of 3.5% in constant currency) and YoY growth of 12.4% (growth of 19.2% in constant currency).

• In rupee terms, Revenue for IT Services stood at Rs. 50.79 billion (Rs. 5,079 Crores), a YoY growth of 31%.

• Profit Before Interest & tax(PBIT) for IT Services segment was Rs. 1,045 crore, a growth of 26% YoY.

• IT Services business added 31 new clients during the quarter.

• IT Products business recorded a 25% YoY growth in Revenues and 45% YoY growth in PBIT.

• Wipro Consumer Care and Lighting business Revenue grew 21% YoY and PBIT grew 17% YoY.

satyam raju resigns

Satyam shares plunged from 180 levels to 30 , after ramalinga raju had decided to resign and the worst thing was that satyam also dragged the nifty levels to bottom . Investors in panic sold off their shares .

The IT services firm has been in the middle of a controversy since it announced a bid to acquire Maytas Infra and Maytas Properties, owned and run by Mr Ramalinga Raju’s sons. The bid, which was scuttled within 24 hours of the announcement, led to the resignation of four independent directors from Satyam’s board.

Satyam said the chairman and the MD will continue in their positions till the board is expanded. The board is scheduled to meet on January 10. The company also informed the BSE that investment banking firm DSP Merrill Lynch, which was appointed by Satyam to review its strategic options after the failed Maytas bids, terminated its engagement with it.

Raju also admitted that the balance sheet for the month of september showed 5361 cr where as it was 5040 cr . Even the debtors and liabilities figures were tampered with.

Nokia maps show kashmir as part of pakistan

New hand sets of nokia , with its navigation maps showing kashmir as part of pakistan has brought outrage here in india . BJP has mobbed a nokia store and set in blaze . They have demanded action against nokia . The government has not expressed its view , its already ashamed by its ill-brained minister Antulay. Opposition parties are enjoying the good times they have by blaming the UPA …..its a tit-for-tat .

Infosys freshers hiring to be stopped

Infosys the IT major is one of the major recruits . This year they had planned to increse their strength by 25000 . But economic slowdown had mmade them to stop it with 17000 .Out of these 17000 , only 6000 are being given training as of now , rest will have to wait .

Company chief executive kris gopalakrishnan has said that ” all 6000 under training will be taken in , and fresh recrument has been stalled” . All it majors are under great pressure . Wipro has already asked its freshers to join BPO for a period of 12-18 months . HCL is gradually taking in their recruits , since Hcl has recruited in small number they may be abe to take in their candidates , when compared to their peers .

Top indian IT companies will overcome slump

At a time when customers in the US and Europe are tightening their IT budgets, leading Indian tech firms are betting on their huge pile of cash to steer through the global economic crisis and also to explore M&A opportunities in a world reeling under severe liquidity crunch.

Each of the top six Indian software services firms—TCS, Infosys, Wipro, Satyam, HCL Technologies and Cognizant—have cash reserves in excess of $500 million, with Infosys topping the list at $1.8 billion.

This gives these firms flexibility to invest in newer opportunities including M&A possibilities. A comfortable liquidity position is a great resource to quickly acquire a distressed asset, points out Dr T R Madan Mohan, managing partner of Browne & Mohan, a Bangalore-based consultancy firm. Given the global turbulence, many acquisition targets could come at attractive valuations.

“A strong liquidity position is a comfort factor not just for a company, but also for clients and employers,” says Infosys chief financial officer V Balakrishnan. “This also allows for making the right kind of investment in the current context be it an acquisition, new services portfolio or creating technology solutions.”

And it’s not just the top six, even mid-tier companies are looking to leverage their cash reserves for M&A opportunities. Patni Computer systems, with around $270 million in cash, is one such company that’s eyeing M&A opportunities. “Cash is a premium in these tough times, and it will come handy,” says Patni chief financial officer Surjeet Singh. The company is currently evaluating several firms in Europe for making an acquisition.

Citigroup to cut 75,000 jobs

Citigroup said the 75,000 job cuts represented a reduction of about 20% of its staff, leaving it with 300,000 jobs worldwide “in the near term”. The cuts will come from redundancies, the sale of units and natural wastage, the bank said.

Citigroup has lost more than $20bn (£13.6bn) in the past year because of the global financial crisis. It has posted four straight quarterly losses and some analysts believe the bank will not make a profit again until 2010.

“Certainly [the job cuts] will fall particularly heavily on London and New York,” Citigroup chairman Win Bischoff said at a business forum in Dubai. Citigroup’s chief executive Vikram Pandit has come under pressure from critics who have doubted his ability to turn around the company and weather the financial crisis.

Last week, shares in Citigroup dropped below the $10 mark. They are down almost 70% this year.