The Telegraph
Friday , July 25 , 2014
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Wipro profit grows 30%

Mumbai, July 24: Wipro today met Street estimates by posting a nearly 30 per cent growth in net profit for the first quarter ended June 30 at Rs 2,103 crore against Rs 1,623 crore in the corresponding period of the previous fiscal.

The country’s third-largest software services exporter forecast better days on the back of a stable demand environment and some uptick in discretionary spending in its key market.

The Bangalore-based company forecast that revenues from its IT services business will be in the range of $1.77-1.81 billion for the quarter ending September, a growth of 1.7-4 per cent over the reporting quarter when revenues from IT services stood at $1.74 billion.

Interacting with reporters in Bangalore after declaring the results, T.K. Kurien, executive director & chief executive officer of Wipro, said the demand environment was steady in key markets such as North America. Moreover, there has been an uptick in discretionary spending in some part of its business.

Besides a healthy demand pipeline, the company is confident of growth in the domestic market following the change of power at the Centre.

“We see a significant rise in business confidence in developed markets as well as India. The new government at the Centre has brought about hope and confidence in the minds of all stakeholders through reform pronouncements with fiscal prudence. We expect greater economic activity, including investments in India.” Wipro chairman Azim Premji said.

On the company’s performance in the first quarter, Kurien said it saw a strong demand from healthcare and life sciences and an improvement in demand from segments such as manufacturing.

Wipro saw lower margins during the quarter largely because of a salary hike. Margins during the period came down to 22.8 per cent from 24.5 per cent in the preceding quarter.

Wipro raised salaries to the tune of 8 per cent for its offshore employees and 2 per cent for those on site. The IT services segment had 147,452 employees as of June 30 and the company added 35 customers during the quarter.