This summary is based on the first quarter fiscal 2007 earnings call conducted by Wipro Limited (WIT: chart) on July 19, 2007.

Chairman & MD: Azim Premji
Chief Financial Officer: Suresh Senapaty
President for Wipro Consumer Care: Vineet Agarwal
President, Product Engineering Solutions for Wipro Technologies: Ramesh Emani
President, Enterprise Solutions for Wipro Technologies: Sudip Banerjee
President, IT Practices & President, Wipro Infotech: Suresh Vaswani
President, Finance Solutions: Girish Paranjpe
Corporate VP HR: Pratik Kumar
CEO, BPO: T.K. Kurien
Investor Relations: Sridhar Ramasubbu

Key Investors Issues

- Earnings per share increased 14% over the prior year to 12 cents.
- Quarterly revenue of Rs41.83 billion was an increase of 34% from last year.
- The firm ended the quarter with 72,137 employees.

First Quarter Fiscal 2007 Financial Highlights

Total Revenue for the quarter was Rs41.83 billion ($1.03 billion), representing an increase of 34% over the same period last year.

The results for the quarter are satisfying considering the strong headwinds faced by the company in the form of appreciating rupee. Revenue from Global IT Services at $726.1 million for the quarter were ahead of the guidance of $711 million. The IT Services business continued to witness broad-based growth across verticals, geographies and service lines. The growth in revenues was primarily driven by strong volume growth across the business units. The differentiated services, Technology Infrastructure Services and Package Implementation, grew over 50% year on year, while Business Process Outsourcing and Testing delivered growth in excess of 40% year-on-year.

Amongst verticals, the firm saw strong growth in Financial Solutions, Telecom Service Providers, Manufacturing and Technology, Media, Transportation and Services verticals.
On the operational front, Wipro improved utilization by more than 400 basis points which helped it to partially mitigate the impact of rupee appreciation and additional sales and marketing investments.

Net income was Rs. 7.1 billion ($175 million), representing an increase of 16% over the same period last year.

Earnings per share were Rs4.90 (12 cents), representing an increase of 14% over the same period last year.

The firm had 72,137 employees as of June 30, 2007, which includes 53,073 employees in our IT Services & Products business and 19,064 employees in our BPO Services business. This represents a net addition of 4,319 people, comprised of 2,719 employees in our IT Services & Products business and 1,600 employees in our BPO business.

Performance Analysis of Segments

Global IT Services and Products

The Global IT Services and Products business segment recorded revenue of Rs29.4 billion ($725 million) for our quarter ended June 30, 2007, representing an increase of 20% over the same period last year.
- EBIT for this segment was Rs6.23 billion ($153 million), representing an increase of 5% over the same period last year.
- The operating income to revenue for this segment was 21.2%, representing a decrease of 300 basis points compared to the same period last year, lower primarily due to rupee appreciation.
- Return on Capital Employed (ROCE) for this segment was 46% compared to 55% for the same period last year.
- Our Global IT Services and Products business added 39 new clients during the quarter, of which 9 were Global 500 or Fortune 1000 companies, comprised of 16 new Technology clients and 23 new Enterprise clients.
- Gross utilization improved by more than 400 basis points to 67% during the quarter.

India and Asia-Pac IT Services and Products Business Segment (Wipro Infotech)

The segment had recorded revenue of Rs6.6 billion ($163 million), representing an increase of 51% over the same period last year.
- EBIT for this segment was Rs501 million ($12 million), representing an increase of 42% over the same period last year.

- The operating income to revenue for this segment was 7.6%, a decrease of 50 basis points compared to the same period last year.
- ROCE for this segment was 29% compared to 40% for the same period last year.

Consumer Care and Lighting

The Consumer Care and Lighting business segment recorded revenue of Rs2.22 billion ($55 million), an increase of 35% over the same period last year.
- EBIT for this segment was Rs305 million ($7.5 million), representing an increase of 32% over the same period last year.
- The operating income to revenue for this segment was 13.7%, a decrease of approximately 30 basis points compared to the same period last year.
- ROCE for this segment was 40% compared to 51% for the same period last year.

During the quarter, Wipro Consumer Care & Lighting Business signed a definitive agreement to acquire Unza Holdings Limited, a Singapore based Fast Moving Consumer Goods company for, an all cash consideration of Rs10,102 million (approximately $246 million). In addition, Wipro will assume debt of Rs1,845 million (approximately $45 million), owed by the acquired entity. Subject to customary closing conditions, the transaction is likely to be completed in July 2007.