Wipro Ltd has posted a profit after tax of Rs 178 crore (Rs 1.78 billion) in accordance with US GAAP for the quarter ended June 30, 2003 an increase of over 5 per ecnt over the profits for the corresponding quarter ended June 30, 2002.

However, according to the Indian accounting standards, Wipro's profit after tax rose 43 per cent at Rs 206.1 crore (Rs 2.06 billion) for the first quarter of the fiscal year 2003-04 on a turnover of Rs 1198.9 crore (Rs 11.99 billion), up by 29 per cent.

The net difference between profits computed in accordance with Indian standards and US GAAP (Generally Accepted Accounting Principles) is primarily due to different revenue recognition standards, accounting for deferred stock compensation expenses and different accounting standards for recording the dilution arising from exercise of employee stock options in Wipro Spectramind.

National Association of Software and Service Companies said on Thursday that Wipro is India's No 3 software exporter after unlisted Tata Consultancy Services and Infosys.

During April-June, shares of Wipro have risen about six per cent underperforming a 14 per cent rise in Bombay Stock Exchange's infotech index.

Wipro chairman Azim Premji, commenting on the results said: "We see convergence in the business models of our Global IT services and products and IT enabled services segments from a customer standpoint.

"With our established track record in Wipro Technologies and Wipro Spectramind, we are well positioned to lead this convergence.

The environment is one of volume growth coupled with an appreciating rupee. Looking ahead, for the quarter ending September 2003, we currently expect our revenue from our Global IT services and products segment, which also includes revenue from our IT-enabled services business as of June 30, 2003, to be approximately $210 million."

Vivek Paul, vice chairman of Wipro said: "During the quarter, we continued our success in selling Business Process Outsourcing to our existing clients."

Paul said Wipro's BPO business grew 19 per cent over the prior quarter.

Wipro added 38 new clients in the first quarter ended June 30, 2003 including 15 in R&D services, 13 in enterprise services and two in IT-enabled services.

The company said it added 2,251 employees in the period under review taking the staff strength to 21,080 employees.

This includes 14,618 employees in IT services business and 6,462 employees in IT-enabled services business. The additions comprised 895 in IT services and 1,356 in IT-enabled services, according to a release issued by the company in Friday.