India’s Wipro reports quarterly profit up 41%

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Wipro, one of India’s biggest outsourcing exporters by sales, reported Thursday quarterly net profit jumped 41 per cent as clients increased spending on the back of a pick-up in the global economy.

For the financial fourth quarter ended March 31, Wipro’s net profit totalled 22.3 billion rupees ($371 million) on revenues that climbed 22 percent to 117.04 billion rupees.

Billionaire Wipro chairman Azim Premji, India’s richest tech tycoon, said the technology services company’s quarterly profit was helped by “the steady improvement in the global economy”.

The profit outpaced market expectations of 21 billion rupees.

Earnings of Wipro’s rivals, Infosys and Tata Consultancy Services, have also been boosted by reviving demand in their key US and European markets.

“We saw strong deal closure in the fourth quarter, with our order book being one of the highest we have ever seen,” Wipro chief executive T.K. Kurien told reporters in the company’s home city of Bangalore.

But the firm, which has been decentralising its operations to become more swift in decision-making, forecast quarter-on-quarter revenue growth for the three months to June of around zero to two percent.

The first quarter of the financial year is traditionally a higher-spending one by clients and analysts had been hoping for a prediction of up to four percent quarter-on-quarter revenue growth.

The revenue “guidance was slightly disappointing”, said Dipen Shah, head of private client group research at Mumbai’s Kotak Securities.

But Shah added the company’s revenue “growth trajectory has improved in the past few quarters”.

Wipro, which has been seeking to be more aggressive as it struggles to gain back market share lost to rivals, said the results were calculated according to Indian accounting standards.

As part of Wipro’s reorganisation, it spun off its non-IT business into unlisted Wipro Enterprises and the company now trades on the stock exchange as a pure IT share.

India’s flagship outsourcing industry has posted generally robust profits for the final quarter of the last financial year to March 2014.

But the companies have been generally muted in their revenue outlook for the first quarter of this financial year to March 2015, disappointing some investors who had been hoping for a dramatic upturn.

 

 

 

 

 

Source : Channel News Asia | April 18, 2014

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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