This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Wipro Ltd. (WIT: chart) on April 20, 2007.

Key Investors Issues

- Global IT Services revenue of $690.7 million included $631.1 million from IT Services and $59.6 million from BPO services.
- After assigning to the assets on the balance sheet, the company had about $195 million of contracts at rates between INR44 and INR45.77.
- The company added 44 new customers, seven of which were Fortune 1000/Global 500 customers.

Fourth Quarter Highlights

The revenue of Global IT Services segment that was $690.7 million, or in rupee terms INR30.42 billion, appears in earnings release as $706 million based on the convenience calculation.

Global IT Services revenue of $690.7 million included $631.1 million from IT Services and $59.6 million from BPO services. The sequential revenue growth, up 7.8% in Global IT Services segment, comprised of 7.4% growth in the revenue of IT Services and 12.5% growth in revenue of BPO services. Sequential revenue growth of 7.4% in IT services was driven by volume growth of 5.4% and increase in realization of 1.3%. Acquisitions grew 14% sequentially.

On the Forex front, realized rate was INR44.04 versus at the rate of INR44.77 realized for the quarter ended 31st December 2006.

As of period end, after assigning to the assets on the balance sheet, the company had about $195 million of contracts at rates between INR44 and INR45.77.

The company added 44 new customers, seven of which were Fortune 1000/Global 500 customers. The company continues to see good traction in the marketplace across service offerings.

The company affected salary hikes from January for onsite employees, which impacted margins by 50 basis points.

Increase in billing rates and improved profitability in acquisitions and BPO offset adverse impacts of wage hikes and duty applications.

Operating margins of acquisitions portfolio improved by more than 150 basis points sequentially.

The BPO business has completed its first phase of transformation and it has delivered good growth in the last two quarters, and has held margin about 22% range.

Fiscal 2007 Highlights

- Revenue growth was 41% year-on-year for financial year 2007 and net income growth of 44% year-on-year. All business segments contributed to the strong growth in revenue and profits. Combined IT business crossed $3 billion mark in 2006-2007.

- During the year, the company made investments in the form of strategic acquisitions, expanded sales force, increased domain competency and solution focus, and launched new projects under Quantum Innovation umbrella. These have helped in delivering good profit growth, winning a number of large deals, and expanding footprint with existing customers.

- These results were a testimony to the fact that investing in the right opportunities will yield good results. The company invested early in differentiated service line, namely Technology Infrastructure Services, Testing Services, and Enterprise Application Services. All these service lines have grown well ahead of global IT growth. BPO business, which went through a planned transformation, has delivered strong growth during the past two quarters and has been consistently improving profitability. Financial services business has grown CAGR of 50% for the last four years and crossed 0.5 billion mark in revenues for the year. During the year, the company had an excellent growth in retail, TMTS, and healthcare verticals of enterprise business. Enterprise solutions business crossed $1 billion in annual revenues.

- From geography perspective, Europe continues to grow at a brisk base. The company expanded geographical presence by creating a center in Romania, which has gone live with its first customer, and it has the global delivery center in Portugal and Brazil. The company continues to invest in quality processes and it is amongst the first few companies to get certified under the new CMSI Version 1.2 model across onsite and offshore development centers.

- The company received the India Innovation Award under the Business Innovation category for Global Command Center, and the company was the only Indian company to be profiled by BusinessWeek as part of the IN 25 Champions of Innovation. Similarly India, Middle East, and Asia-Pac IT business continued its momentum and grew at double the industry growth rate. It recorded a revenue and profit growth of 45% for 2006/2007. The company won several large total-outsourcing deals during the year, including some monetary customers like Dena Bank, a leading bank in India. Win ratios continue to be high at around 60%. Technology partners like Cisco, Sun, Microsoft, and Checkpoint have rated the company as a top partner for the year.

- The company continues to invest in non-IT business in the form of acquisitions and also in product and geographic expansion. For the fiscal, they have delivered growth rates, which are double the industry rates.
- Investments and focus on enhancing value to customers and stakeholders has paid off.