Bangalore: Wipro, the country’s third largest software services exporter, has reported a net profit of Rs 1,318.6 crore for the first quarter, up 31% compared with the corresponding quarter of the previous fiscal. The company attributed the growth to a better demand environment which helped it withstand headwinds in the form of wage hikes and a decline in price realisation.
Encouraged by the environment, Wipro has forecast IT services revenue in the second quarter to be between $1.25 and $1.27 billion, a growth of 4.1-6.1% over the April-June period. Wipro’s impressive earnings come in the wake of TCS’ strong showing, after Infosys uncharacteristically failed to impress.
Wipro’s overall revenues for the latest quarter grew by 16.1% to touch Rs 7,236 crore compared with the corresponding period last year. Its flagship IT services business raked in Rs 5,500 crore, an increase of 14% led by a volume jump of 4.7%. Package implementation, which soared 18% over the year-ago period, propelled the growth along with product engineering services and traditional application development maintenance.
Chairman Azim Premji said there are now “sound indications” that discretionary spending is back. “There will not be a double dip recession. Inspite of the euro crisis, demand is strong and there is no significant impact,” he said. “We added the highest number of billable employees ever in this quarter and we are seeing price stabilisation.”
Wipro shares on the Bombay Stock Exchange slipped 0.84% to close at Rs 412.10.
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