Wipro results round out strong Indian tech earningsBy ANI
Tuesday, October 27, 2009
BANGALORE - Wipro Limited, India’s No.3 software services exporter, robust outlook fuelled optimism is a result of overseas clients boosting its orders in an improved economic environment.
The results justified investors’ faith that has helped IT stocks beat the broader market this year, hot on the heels of a strong performance by global tech firms.
Wipro, the country’s No. 3 software services exporter, behind Tata Consultancy and Infosys, added 37 new clients in July-eptember.
The worst seems to be over for India’s 60 billion dollars outsourcing sector as bigger firms win large deals and pricing pressure eases, after the industry’s core financial clients cut technology spending during the economic downturn.
Business from sectors such as telecoms and manufacturing, however, still remains sluggish and India’s two-decade-old IT sector faces cut-rate competition from the bigger players.
“There is no question that the economic environment has stabilised, and going forward things are looking much better than what they have looked in the past one year. I think there is more confidence in the system.
“Customers are now back to decision making. That is not to say that there is a huge amount of optimism in the market place, there certainly isn’t pessimism in the marketplace and that is a very welcome change from what we have been experiencing in the past 12 to 15 months,” said Wipre chairman Azim Premji on Tuesday.
Wipro, which counts Citigroup and Cisco among its 800-plus clients, expects IT revenue to rise 3.8 to 5.7 percent in Oct-Dec from the preceding quarter to 1.09-1.11 billion dollars.
The company, which integrates IT systems, develops software applications and manages call centres, posted a 1.9 percent sequential rise in July-Sept IT revenue.
“We are seeing an overall uptake in the demand environment as we had stated in the beginning of the year that we expect the second half to be far superior to the first half. You saw Quarter One, we were exhibiting without good number and Quarter-3 guidance of 2.5 to 4.5 percent is also very good quarter,” said Suresh Senapaty, company’s chief financial officer.
New York-listed Wipro also runs consumer care and lighting businesses.
Infosys, Wipro and Tata Consultancy are expanding in markets such as Europe and the Asia Pacific to cut their dependence on the U.S. market, which brings in more than half the sector’s revenue. (ANI)