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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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