Oct. 27 (Bloomberg) -- Wipro Ltd., India’s third- largest software-services exporter, reported second-quarter profit that beat analysts’ estimates as the global economic recovery spurred clients to increase orders.

Net income rose 22 percent to 11.8 billion rupees ($253 million) in the three months ended Sept. 30, Bangalore-based Wipro said today. That beat the 10.8 billion rupee median estimate of three analysts surveyed by Bloomberg News.

Wipro shares rose to the highest since Feb. 26, 2007, after the company joined Tata Consultancy Services Ltd. and Infosys Technologies Ltd. in beating estimates. U.S. technology demand will start to rise this quarter as companies realize they cut back too much during the recession, research firm Forrester Inc. said last week.

“The guidance has been extremely buoyant; I feel the sector is out of the woods,” said Anu Jain, who helps manage about $428 million at Mumbai-based IIFL Private Wealth Management Ltd. “Wipro’s giving a far more true picture rather than just a conservative one,” Jain said, adding she would definitely include the stock in her portfolio.

IT Services Forecast

Revenue at Wipro’s IT-services business will range between $1.09 billion to $1.11 billion this quarter, Wipro said today. The company, which also makes soaps, light bulbs and hydraulic equipment, posted sales of $1.07 billion at the information technology unit in the fiscal second quarter. That compared with its July forecast of as much as $1.05 billion.

Wipro added 2.4 percent to 605.65 rupees in Mumbai trading after rising as much as 4.5 percent to the highest since February 2007. The stock, the best performer on the Bombay Stock Exchange’s 30-member Sensitive Index today, has more than doubled this year, outperforming the benchmark’s 70 percent gain.

Sales climbed 5.5 percent to 68.9 billion rupees. That beat the 66 billion rupee median estimate in the survey of analysts.

“We see more stability in volumes and pricing as well as an improving demand environment,” billionaire Chairman Azim Premji said in a statement. “Our broad portfolio of services and strong delivery excellence continues to position us as a partner of choice with customers, as they focus on capital conservation and cost transformation.”

Wipro designs and builds software programs, maintains computer data centers and provides engineering services and back-office support to Boeing Co., Cisco Systems Inc., Sunoco Inc. and other clients.

‘Bring Them Back’

As the recession eases, companies will find “there are a lot of things that we want to do, let’s bring them back on,” Andrew Bartels, a principal analyst at Forrester, said in a telephone interview last week. “The top three will be the first to benefit” among the Indian providers, he said.

Wipro won orders from BP Plc and U.S.-based Aquarion Water Co. Clients seeking to reduce the number of vendors has helped Wipro win more business, Chief Financial Officer Suresh Senapaty told reporters today. The software services provider won a $100 million contract from Foster’s Group Ltd., the Economic Times reported in August, citing a spokesman for the Australian brewer.

Strong Recovery

Technology demand will rebound worldwide in 2010, Forrester said last month. White House adviser Lawrence Summers said earlier this month there has been a “substantial return to more normal conditions” in the U.S., and cited economists’ estimates that the world’s largest economy returned to growth in the third quarter of the calendar year.

Forrester expects a strong recovery in the U.S. information technology market in 2010, with 7.7 percent growth, led by consulting services, Bartels wrote in a report dated Sept. 29.

Premji said this month Wipro will add employees in the U.S. as technology spending in the company’s largest market rebounds. The workers may help Wipro, which gets half its sales from the U.S., win local orders, including contracts with the federal government, as the world’s largest economy starts to recover.

Infosys, India’s second-largest software exporter, said Oct. 9 sales will range from $4.60 billion to $4.62 billion in the year ending March 31, raising its July forecast of between $4.45 billion to $4.52 billion. Chief Executive Officer S. Gopalakrishnan said the business climate had improved with clients looking to invest in strategic relationships.

To contact the reporter on this story: Harichandan Arakali in Bangalore at harakali@bloomberg.net.

Last Updated: October 27, 2009 07:52 EDT