Wipro Limited today announced its results approved by the Board of Directors for the quarter ended June 30, 2008.
Highlights of the Results
· Wipro Limited Revenue increased by 43% Year on Year (YoY) to Rs. 59.67 billion (Rs. 5,967 Crores); Profit After Tax (PAT) grew by 25% YoY to Rs. 9.08 billion (Rs. 908 Crores).
· IT Services Revenue in dollar terms was $1067 million, a sequential growth of 3.5% and YoY growth of 37%. In rupee terms, Revenue stood at Rs. 44.05 billion (Rs. 4,405 Crores), a YoY growth of 39%.
· Profit Before Interest & Tax (PBIT) for IT Services segment was Rs. 9.19 billion, a growth of 37% YoY.
· Wipro won the SAP Pinnacle Award for thought leadership around enterprise SOA.
· IT Services added 31 new clients during the quarter.
· IT Products business recorded a 44% YoY growth in Revenues and 7% YoY growth in PBIT.
· Wipro Consumer Care and Lighting business Revenue grew 119% YoY and PBIT grew 100% YoY.
Performance for the quarter ended June 30, 2008 and Outlook for quarter ending September 30, 2008
Azim Premji, Chairman of Wipro, commenting on the results said - “We have had another satisfying quarter. Revenues from our IT Services were $1,067 million for the quarter, ahead of our guidance of $1,060 million. In the backdrop of significant economic uncertainty, our Financial Services and Retail businesses demonstrated their resilience. We had strong growth in our differentiated Service lines like Testing, TIS and BPO. Our strategy of focusing on MEGA/GAMA accounts is delivering results with top customers growing ahead of company average. We improved on several of operational parameters during the quarter.
Given the environment, we remain cautious in the near-term. Looking ahead, for the quarter ending September 2008, we expect our Revenue from our IT Services business to be approximately $1089 million.”
Suresh Senapaty, Chief Financial Officer of Wipro, said – “During the quarter ended June 2008, we were able to sustain margins in spite of Restricted Stock Units grants. Rate Realization and Utilization improved sequentially by 300 basis points and 50 basis points respectively. We have won 7 multi-year multi-million dollar deals and added 31 new customers during the quarter. We added another customer to our $100 million customer list.”
Wipro Limited
Revenues for the quarter ended June 30, 2008, were Rs. 59.67 billion, representing a 43% increase YoY. Profit after Tax for the quarter was Rs. 9.08 billion, an increase of 25% YoY.
IT Services
IT Services business reported Revenues of Rs. 44.04 billion for the quarter ended June 30, 2008, representing an increase of 39% YoY and PBIT of Rs. 9.19 billion, representing an increase of 37% YoY. Operating Income to Revenue for the quarter was 20.9%.
We had 95,675 employees as of June 30, 2008, which includes 74,838 employees in our IT business unit and 20,837 employees in our BPO business unit. We added 31 new clients during the quarter, of which 4 were Global 500 or Fortune 1000 companies.
Wipro is helping a Large European Energy Equipment Manufacturer in their next generation application management initiative. This engagement will cover business solutions supporting the North American division of the customer, including Manufacturing, Sales and Services, Finance and Control, Product management and Marketing. As part of the engagement, Wipro will provide the customer with real-time information on the performance and health of the IT application platform and improve the overall operational efficiency.
A Worldwide leader in the manufacture of high-quality audio and electronic products chose Wipro for providing end to end management of its IT Infrastructure across Americas, Europe and Asia Pacific. This multi million dollar engagement spans 7 years.
Wipro was chosen as the Key strategic partner by a Global Apparel & Footwear manufacturer for a wide spread of their application landscape. Some of them involve holistic support for their critical global systems in the B2B space, Sales order capture, all supporting transactions and its associated reporting needs, which form a part of the customer's strategic visioning and internal development of their robust sales systems.
A Global integrated Steel major has engaged Wipro as the system integration partner for transforming its core manufacturing execution business solution. Wipro will program manage this initiative to implement consolidated and simplified business processes targeted towards inventory reduction. The program will entail redesign of the shop floor process including Planning & Scheduling and Production Execution along with IT application rationalization.
Wipro is designing and deploying a solution to enable supply chain visibility for a large automotive Original Equipment Manufacturer (OEM). This solution is designed to bring in a unified global process for tracking vehicles once they leave the factory on intercontinental transport till they reach the dealers. These applications are scalable for the future growing needs of the OEM and planned to be deployed across geographies.
In the transportation Industry group, Wipro won a large deal from one of the leading Mail & Express company in Europe. This is a multi-million dollar 5 year deal consisting of SAP Finance and Procurement Support , SAP HR Rollout & Support and SAP FSCM implementation Rollout.
Wipro is also providing Global Support for SAP applications for a Leading Alcoholic Beverages company deploying the Flexible Delivery Model. This has enabled faster ramp up and ramp down as per business demand, wider shift coverage, better service levels, and higher productivity gain for the customer at an optimized cost.
Wipro Arabia won a large multi-million dollar turnkey IT Solutions and Infrastructure Services project from a leading Govt. owned technology institute based in the Middle East. Other key wins in the Indian market for the quarter include a 10 year Total Outsourcing Contract with a large realty company, a comprehensive SAP implementation suite at a large public sector enterprise, an end-to-end Data Warehousing Implementation at a large PSU Bank and Infrastructure Integration & Management contracts from a large Retail chain.
IT Services business accounted for 74% of Revenue and 90% of PBIT for the Quarter ended June 30, 2008.
Applied Innovation
As a part of its effort for continuous Innovation in delivery, Wipro has invested in outcome based models and we are seeing increased customer interest. This result based model has inherent benefits like improvement in service levels and end-user experience. FlexDelivery is one such model for managing enterprise applications and we now have six clients using this model out which three were added in the last quarter.
We launched Cigma (Center for Integrated Global Management of Applications), offering a 360 degree Services capability for managing the application landscape of an enterprise spread across the globe. This service offers the unique capability of providing an outcome based model based on SLA’s (service level agreements) as well as BLA’s (business level agreements) to customers. Cigma is currently made available to clients in the manufacturing space.
Taking the message of Applied Innovation further, Wipro pioneered Innovative Green practices to hold a global carbon neutral event-“Mandala”. Mandala is a global customer forum where Wipro’s customers, thought leaders and senior management meet to debate, exchange ideas and share best practices in key areas that will shape the future of the global industry. Wipro also announced its membership in The Green Grid, a global consortium dedicated to advancing energy efficiency in data centers and business computing ecosystems.
Awards and Recognition:
Wipro won the SAP Pinnacle Award for thought leadership around enterprise SOA. This global award recognizes partners who make exemplary contribution to SAP’s ecosystem.
This quarter, Wipro was also recognized by Emerson Rosemount as top IT partner for Continuous Improvement in the areas of Quality, Speed, Flexibility, Service, Technology, and Cost. Wipro is the only IT Services Company till date that has been recognized by Emerson.
Wipro was awarded the Top Network Integrator award for the fourth consecutive year by Voice and Data, and was also ranked as the best APAC partner by Netapp.
Wipro has won the Partner of the year award from IBM and the Fastest growing Solution Partner award for Asia Pacific from Packeteer.
IT Products
For the quarter ended June 30, 2008, IT Products business recorded Revenues of Rs.7.5 billion, representing a growth of 44% YoY. PBIT grew by 7% YoY to Rs. 249 million. Operating Income to Revenue for the quarter was 3.3%.
IT Products business accounted for 12.5% of the Revenue and 2% of the PBIT for the quarter ended June 30, 2008.
Consumer Care & Lighting
For the quarter ended June 30, 2008, our Consumer Care and Lighting business recorded Revenues of Rs. 5.13 billion, a growth of 119% YoY and PBIT of Rs. 609 million, a growth of 100% YoY. PBIT to Revenue was 11.9% for the quarter.
Consumer Care & Lighting business accounted for 9% of the Revenue and 6% of the PBIT for the quarter ended June 30, 2008.
Wipro Limited
For the quarter ended June 30, 2008, the Return on capital Employed in IT business was 41% and Consumer Care & Lighting business was 14%. At the Company level, the Return on Capital Employed was 25%, lower due to inclusion of cash and cash equivalents of Rs. 56 billion in Capital Employed (33% of Capital Employed).
For Wipro Limited, Profit after Tax computed in accordance with US GAAP for the quarter ended June 30, 2008, was Rs. 8.14 billion. The net difference between Profits computed in accordance with Indian GAAP and US GAAP is primarily due to different Revenue recognition standards, income taxes, amortization of intangible assets, differences in accounting treatment for hedge accounting for foreign currency loan and related currency swaps and India fringe benefit tax.
For Wipro Limited, Non-US GAAP adjusted Profit after Tax for the quarter ended June 30 2008, was Rs. 8.85 billion. The net difference between Profits computed in accordance with Indian GAAP and Non-US GAAP adjusted is primarily due to different Revenue recognition standards, income taxes, and amortization of intangible assets.
IT Services segment’s Revenues were Rs. 43.93 billion for the quarter ended June 30, 2008, under US GAAP.
The difference of Rs. 112 million is primarily attributable to difference in accounting standards under Indian GAAP and US GAAP.
On April 18, 2008, the Company announced changes to the management structure of IT Business and appointed Joint CEO’s to head the IT business. Consequent to this re -organization, the Company identified IT Services and IT Products as the reportable segments relating to the IT businesses. There is no change in the reportable segments for other businesses. Segment information in respect of earlier period has been revised to conform to the presentation as per new reportable segments.
Wipro's Q1 FY09 PAT up 4.2% (QoQ)
Wipro Q1 net profit seen at Rs 873.9 crFrom the Wipro Message Board
Q1 results 09
Friday, July 18, 2008
Top U.S., India aides meet ElBaradei on atom draft
Senior U.S. and Indian officials met the International Atomic Energy Agency chief on Friday ahead of an Indian briefing to IAEA governors to resolve questions about India's plan for expanded nuclear inspections.
India negotiated the safeguards scheme with IAEA experts and the text is to be considered by the U.N. watchdog's 35-nation governing board in a special August 1 session. Approval is a precondition for launching a U.S.-Indian nuclear trade accord.
If it passes, India and the United States must win clearance from a 45-nation group that regulates sensitive nuclear trade, then ratification by the U.S. Congress for the controversial 2005 nuclear agreement to take force.
India agreed to subject its 14 declared civilian atomic reactors to inspections to help enable it to import "trigger list" nuclear items for peaceful use, even though it has shunned the Non-Proliferation Treaty (NPT) and tested atomic bombs.
Indian Foreign Secretary Shiv Shankar Menon consulted with IAEA Director-General Mohamed ElBaradei on Friday hours before an afternoon briefing with agency governors as well as delegates from the Nuclear Suppliers Group (NSG).
ElBaradei then received U.S. Undersecretary of State William Burns for talks on India. Burns was making a brief stopover in Vienna en route to Geneva where he will join talks with Iran on its disputed atomic work in an unprecedented step by Washington.
Menon, Burns and ElBaradei had no comment for reporters
India negotiated the safeguards scheme with IAEA experts and the text is to be considered by the U.N. watchdog's 35-nation governing board in a special August 1 session. Approval is a precondition for launching a U.S.-Indian nuclear trade accord.
If it passes, India and the United States must win clearance from a 45-nation group that regulates sensitive nuclear trade, then ratification by the U.S. Congress for the controversial 2005 nuclear agreement to take force.
India agreed to subject its 14 declared civilian atomic reactors to inspections to help enable it to import "trigger list" nuclear items for peaceful use, even though it has shunned the Non-Proliferation Treaty (NPT) and tested atomic bombs.
Indian Foreign Secretary Shiv Shankar Menon consulted with IAEA Director-General Mohamed ElBaradei on Friday hours before an afternoon briefing with agency governors as well as delegates from the Nuclear Suppliers Group (NSG).
ElBaradei then received U.S. Undersecretary of State William Burns for talks on India. Burns was making a brief stopover in Vienna en route to Geneva where he will join talks with Iran on its disputed atomic work in an unprecedented step by Washington.
Menon, Burns and ElBaradei had no comment for reporters
Thursday, July 17, 2008
Mayawati uses N-deal to win over Muslim vote
In a bid to use the nuclear deal to turn Muslim mobilization into a polarization in its favour, the Bahujan Samaj Party is inserting the India-US pact into its grassroots campaign among the community.
The BSP is telling the community that Congress has compromised its interests by signing the nuclear pact. The raging issue would be part of the Dalit outfit's mobilization through 'Muslim bhaichara committees'.
The strident stand taken by CM Mayawati against the nuke deal and her drafting of Islamic scholars to back her stand goes far beyond posturing as partymen are now spreading it to basic organizational units. Bahujan strategists conceived the 'bhaichara' committees as part of their outreach to communities outside its core Dalit base to spread the party's wings.
Not merely Mayawati, the deal has triggered a major reaction among political outfits to use it to tap the Muslim sentiment for electoral gains. While it was first aired by CPM politburo member M K Pandhe to dissuade SP chief Mulayam Singh Yadav from jumping on to the nuke deal bandwagon, the reaction across the political spectrum has been on the same lines.
Congressmen concede there are problems and their concern was evident in AICC showing alacrity in issuing a statement on Tuesday to warn US against any misadventure in Iran.
The scepticism about the deal showed as Congress had a tough time negotiating with allies like MIM and IUML whose support is located in the community. It touched an extreme in Kerala assembly last week when a CPM MLA pushed through a non-official resolution denouncing the nuke pact with "anti-Muslim" George Bush.
BSP also sees potential in it. The focus of bhaichara committees has suddenly turned on the nuke pact to wean away the community from the pro-deal front of Congress and SP. A key BSP functionary said, "No one understands the deal. But it has more to do with the US. It is what we hammer on."
A source felt the nuke deal campaign could pave the way for a big change in the community's political choice. "It is for the first time that elections would be fought on a foreign policy issue. While Left is opposed to the deal, our leader has linked it to the community. It would fetch big results," he said.
Seething with anger against the CBI urgency in her disproportionate assets case, Mayawati has seized upon the nuke deal to use it to her advantage in Lok Sabha polls which she thinks can catapult her into a key role at the Centre. Sources said 'bhaichara committees' are being reconstituted along Lok Sabha constituencies to make them more relevant from poll point of view.
The BSP is telling the community that Congress has compromised its interests by signing the nuclear pact. The raging issue would be part of the Dalit outfit's mobilization through 'Muslim bhaichara committees'.
The strident stand taken by CM Mayawati against the nuke deal and her drafting of Islamic scholars to back her stand goes far beyond posturing as partymen are now spreading it to basic organizational units. Bahujan strategists conceived the 'bhaichara' committees as part of their outreach to communities outside its core Dalit base to spread the party's wings.
Not merely Mayawati, the deal has triggered a major reaction among political outfits to use it to tap the Muslim sentiment for electoral gains. While it was first aired by CPM politburo member M K Pandhe to dissuade SP chief Mulayam Singh Yadav from jumping on to the nuke deal bandwagon, the reaction across the political spectrum has been on the same lines.
Congressmen concede there are problems and their concern was evident in AICC showing alacrity in issuing a statement on Tuesday to warn US against any misadventure in Iran.
The scepticism about the deal showed as Congress had a tough time negotiating with allies like MIM and IUML whose support is located in the community. It touched an extreme in Kerala assembly last week when a CPM MLA pushed through a non-official resolution denouncing the nuke pact with "anti-Muslim" George Bush.
BSP also sees potential in it. The focus of bhaichara committees has suddenly turned on the nuke pact to wean away the community from the pro-deal front of Congress and SP. A key BSP functionary said, "No one understands the deal. But it has more to do with the US. It is what we hammer on."
A source felt the nuke deal campaign could pave the way for a big change in the community's political choice. "It is for the first time that elections would be fought on a foreign policy issue. While Left is opposed to the deal, our leader has linked it to the community. It would fetch big results," he said.
Seething with anger against the CBI urgency in her disproportionate assets case, Mayawati has seized upon the nuke deal to use it to her advantage in Lok Sabha polls which she thinks can catapult her into a key role at the Centre. Sources said 'bhaichara committees' are being reconstituted along Lok Sabha constituencies to make them more relevant from poll point of view.
We need no certificate for patriotism
In her first ever public appearance after the Left withdrew support to the UPA government, Congress president hit back on all the opposition to the nuke deal by saying that the party doesn’t need any certificate from anybody on its patriotism. “There is no question of compromising on our national interest (over N-deal). The Congress gave India its independent foreign policy and the party won’t ever waver from its path,” said Sonia firmly.
She further justified the nuke deal by adding that it is in the best interest of the nation. “We need more power as nation to grow. And the requirement is growing by the day. ”
She also lauded Dr Manmohan Singh by adding that the future generations will recognise what the PM is doing for the nation today.
Taking this opportunity to hit out on the opposition, Sonia said, “We need a politics that unites, not that divides, politics that is not based on narrow interests.”
The Congress president also stressed that India is today recognised as an international power. Moreover, she underlined the UPA’s focus on the farmers saying that it is evident with the massive farm loan waiver scheme announced by the central government.
“Welfare of the farmers is the top-most priority of the Congress,” announced Sonia. Stressing the point further she said that the NREGA programme is being extended to all districts. Every village with a population of more than 2000 will have all urban infrastructures including proper roads.
Sonia also tried to play down the inflation issue by drawing a parallel between the UPA and the NDA.
“The government has to face the huge challenge due to the unprecedented increase in oil prices. She pointed out that during NDA rule the crude oil was at around 35 dollars now its around 145 dollar, but unlike the NDA we have not passed on the whole burden to the conman man,” Sonia said.
She further justified the nuke deal by adding that it is in the best interest of the nation. “We need more power as nation to grow. And the requirement is growing by the day. ”
She also lauded Dr Manmohan Singh by adding that the future generations will recognise what the PM is doing for the nation today.
Taking this opportunity to hit out on the opposition, Sonia said, “We need a politics that unites, not that divides, politics that is not based on narrow interests.”
The Congress president also stressed that India is today recognised as an international power. Moreover, she underlined the UPA’s focus on the farmers saying that it is evident with the massive farm loan waiver scheme announced by the central government.
“Welfare of the farmers is the top-most priority of the Congress,” announced Sonia. Stressing the point further she said that the NREGA programme is being extended to all districts. Every village with a population of more than 2000 will have all urban infrastructures including proper roads.
Sonia also tried to play down the inflation issue by drawing a parallel between the UPA and the NDA.
“The government has to face the huge challenge due to the unprecedented increase in oil prices. She pointed out that during NDA rule the crude oil was at around 35 dollars now its around 145 dollar, but unlike the NDA we have not passed on the whole burden to the conman man,” Sonia said.
Vajpayee's silence is vexing nation
BJP’s STATESMAN, Atal Bihari Vajpayee is tight-lipped on the nuke deal. Its depressing that when the country is debating this issue, a person of his stature should be quiet. The country has high regard for him even today. Does he think this will not be an issue for the next elections? He served the nation not only as the prime minister but also as a foreign minister during Janata Party government. He praised the late Prime Minister Indira Gandhi as ‘Adiparasakthi’ after the victory in Bangladesh war. He possesses a clean record. One of the architects of India, Jawaharlal Nehru, praised him on many occasions. All these instances remind us how great some Indian politicians are.
When people and political parties are engaged in an issue, which relates to the future of the nation, it is expected that a leader will express his opinion. On the issue of Lok Sabha Speaker’s resignation, former speaker Rabi Ray has taken his stand. The former law minister also marked his comments on the nuclear deal. The astonishing thing is not to hear a comment of former Prime Minister VP Singh who reacts on every other issue.
The Bharatiya Janata Party (BJP) has no serious objections as we go by the comments of its leaders and also LK Advani. As an Opposition party they may have some political objections. Because of that should the nuke deal process stop? What they were asking is for some amendments. If they come to power they could sign the deal as part o their foreign policy. Then what would be the difference between communists and them? Taking all these factors into account, BJP should act in this moment in a responsible Other . People of the country are already suffering due to increase in prices, as the inflation rates are mounting due to crude oil rates. In the existing scenario, if they fight on this economic issues, their credibility will grow rather than on the nuke issue.
The infighting in the Communist Party Marxist (CPM) is already sending a signal to people that it is on the verge of division after the voting in the Parliament. It shows that the next elections are almost between the two major national parties. Keeping all this in mind a party like BJP should take a different stand on the nuke deal
When people and political parties are engaged in an issue, which relates to the future of the nation, it is expected that a leader will express his opinion. On the issue of Lok Sabha Speaker’s resignation, former speaker Rabi Ray has taken his stand. The former law minister also marked his comments on the nuclear deal. The astonishing thing is not to hear a comment of former Prime Minister VP Singh who reacts on every other issue.
The Bharatiya Janata Party (BJP) has no serious objections as we go by the comments of its leaders and also LK Advani. As an Opposition party they may have some political objections. Because of that should the nuke deal process stop? What they were asking is for some amendments. If they come to power they could sign the deal as part o their foreign policy. Then what would be the difference between communists and them? Taking all these factors into account, BJP should act in this moment in a responsible Other . People of the country are already suffering due to increase in prices, as the inflation rates are mounting due to crude oil rates. In the existing scenario, if they fight on this economic issues, their credibility will grow rather than on the nuke issue.
The infighting in the Communist Party Marxist (CPM) is already sending a signal to people that it is on the verge of division after the voting in the Parliament. It shows that the next elections are almost between the two major national parties. Keeping all this in mind a party like BJP should take a different stand on the nuke deal
US sends top envoy to IAEA when India presents case tomorrow
The Bush Administration has despatched a top envoy to Vienna to bolster support for the Indo-US civil nuclear deal tomorrow when India is due to brief the IAEA Board of Governors on the safeguards agreement.
William Burns, US undersecretary of state for political affairs, will be at the headquarters of the International Atomic Energy Agency(IAEA) enroute to Geneva for a weekend meeting over Iran's controversial nuclear programme.
"Friday, he's (Burns) going to have some consultations at the International Atomic Energy Agency, related to the nuclear deal," State Department spokesman Sean McCormack told reporters here.
"... I don't have many more details for you than that, that he is going to be in Vienna at the IAEA for some consultations on the civil nuclear deal...," he said of the trip by Burns, the third ranking American diplomat who succeeded Nick Burns, the US pointsman for the deal since it was conceived.
As the UPA Government braced for a trust vote on July 22 in the Lok Sabha, India yesterday said it has decided to scale down tomorrow's special briefing for the IAEA on the safeguards agreement and other aspects of Indo-US nuclear deal, confining it to its 35-member Board of Governors and NSG countries which are not part of the Board. Foreign Secretary Shivshankar Menon will be presenting India's case.
The IAEA has said its Board of Governors will meet on August 1 to discuss a draft safeguards agreement with India, necessary for the implementation of the deal.
In addition, India must obtain a waiver from the Nuclear Suppliers Group(NSG), a group of 45 states that export nuclear fuel and technology before it gets the approval of the US Congress
William Burns, US undersecretary of state for political affairs, will be at the headquarters of the International Atomic Energy Agency(IAEA) enroute to Geneva for a weekend meeting over Iran's controversial nuclear programme.
"Friday, he's (Burns) going to have some consultations at the International Atomic Energy Agency, related to the nuclear deal," State Department spokesman Sean McCormack told reporters here.
"... I don't have many more details for you than that, that he is going to be in Vienna at the IAEA for some consultations on the civil nuclear deal...," he said of the trip by Burns, the third ranking American diplomat who succeeded Nick Burns, the US pointsman for the deal since it was conceived.
As the UPA Government braced for a trust vote on July 22 in the Lok Sabha, India yesterday said it has decided to scale down tomorrow's special briefing for the IAEA on the safeguards agreement and other aspects of Indo-US nuclear deal, confining it to its 35-member Board of Governors and NSG countries which are not part of the Board. Foreign Secretary Shivshankar Menon will be presenting India's case.
The IAEA has said its Board of Governors will meet on August 1 to discuss a draft safeguards agreement with India, necessary for the implementation of the deal.
In addition, India must obtain a waiver from the Nuclear Suppliers Group(NSG), a group of 45 states that export nuclear fuel and technology before it gets the approval of the US Congress
Wednesday, July 16, 2008
DA for govt employees raised by 5 per cent
The government has increased the dearness allowance for officers and employees of the central public sector enterprises (CPSEs) by 5 per cent, to help them meet the increasing cost of living.
The CPSE employees, pursuant to a notification issued by the government, would get industrial Dearness Allowance (IDA) at 84.4 per cent of basic pay with effect from July 1.
The employees and workers of the CPSEs were earlier getting an IDA of 79.4 per cent of the basic pay, which came into effect on April 1.
The decision, according to a Standing Conference of Public Enterprises (SCOPE) official, would benefit all board level executives, below board level officers, employees and workers of the central PSUs.
The government revises the IDA for the PSU staff every quarter depending upon the movement of the Consumer Price Index (CPI) with a view to compensating them for the rising cost of living.
The hike in IDA would provide some relief to the CPSE staff, reeling under the spate of rapidly rising wholesale price-based inflation, which is nearing a 13-year high mark of 12 per cent.
The next installment of the IDA would become due on October 1, 2008.
The CPSE employees, pursuant to a notification issued by the government, would get industrial Dearness Allowance (IDA) at 84.4 per cent of basic pay with effect from July 1.
The employees and workers of the CPSEs were earlier getting an IDA of 79.4 per cent of the basic pay, which came into effect on April 1.
The decision, according to a Standing Conference of Public Enterprises (SCOPE) official, would benefit all board level executives, below board level officers, employees and workers of the central PSUs.
The government revises the IDA for the PSU staff every quarter depending upon the movement of the Consumer Price Index (CPI) with a view to compensating them for the rising cost of living.
The hike in IDA would provide some relief to the CPSE staff, reeling under the spate of rapidly rising wholesale price-based inflation, which is nearing a 13-year high mark of 12 per cent.
The next installment of the IDA would become due on October 1, 2008.
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