Wipro Battles To Grow In Volatile Market


BANGALORE – As India’s third largest IT bellwether, Wipro too is battling to grow in a volatile currency market with uncertainty writ large due to global slowdown and sovereign debt crisis in Europe.

Though the global software major grew its topline and bottomline in double digits on annualised basis in rupee terms, its net income and revenue from its IT services business slipped sequentially in dollar terms in the first quarter (April-June) of this fiscal (2012-13) from previous quarter (January-March) of last fiscal (FY 2011-12).

As a result, the company projected a flat growth of $1.54 billion revenue from its global IT services for the second quarter (July-September) of this fiscal (FY 2013).

“Revenue from our IT services business is expected to be $1.54 billion in second quarter (Q2) and marginally higher (1.3 percent) from $1,496 million ($1.5 billion) posted in first quarter (Q1) of this fiscal (FY 2013) under the International Financial Reporting Standards (IFRS),” the company said in a statement.

The company posted net profit of 1,580 crore (15.8 billion) in first quarter, registering 18 percent year-on-year (YoY) growth and 6.7 percent sequentially (quarter-on-quarter) as per the Indian accounting system.

Similarly, consolidated revenue for the quarter under review (Q1) rose 24 percent YoY and 7.9 percent sequentially to 10,653 crore (106.53 billion), including 8,314 crore (83.14 billion) from its global IT services.

Under the IFRS, net income for first quarter is $284 million and total income $1.92 billion, including $1.5 billion from IT services.

In dollar terms, net income, however, declined 2.4 percent sequentially from $291 million from previous quarter.

“We have seen high levels of volatility in currencies globally,” Wipro chief financial officer Suresh Senapaty said in the statement. Unlike its peer Infosys Ltd., Wipro does not give annual revenue guidance.

“IT services revenue in dollar terms was impacted by $25 million due to cross-currency volatility,” Senapaty pointed out.

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