Wipro, the third largest exporter of software services, on Monday reported revenues of Rs.9,094 crore in the second quarter, 18 per cent higher than in the previous year. The company earned Rs.6,829 crore from IT services, which accounts for three-fourths of all revenues, an increase of 19 per cent on an annualised basis.
The net profit for the said quarter was Rs.1,301 crore, an increase of one per cent on an annualised basis.
Wipro Chairman Azim Premji said, “Despite macroeconomic uncertainties, we do not see a significant slowdown in the IT business.” Global corporations, which were trying to increase revenues, decrease costs and make process improvements, were “generating good cash flows,” he remarked. The organisational restructuring undertaken by the company had played a significant role in reducing attrition levels in the company, he said.
The company's guidance for the third quarter is that revenues will range between $1.50 billion and $1.53 billion.
Commenting on the general economic situation in the country, Mr. Premji said, “There is a complete lack of decision-making in the leadership of the Government.”
Mr. Premji said higher capital spending in large projects by global companies, in sectors such as infrastructure, oil and gas, business process outsourcing, would offer opportunities for Wipro.
T. K. Kurien, Executive Director and CEO, said the company had registered a volume growth of 6 per cent during the last quarter. “The foundation we have laid in the last couple of quarters appears to have paid off,” he added. “This has been our best performance in the last four quarters,” he added. On a net basis the company added 5,000 persons to its workforce in the last quarter, he said.
Mr. Kurien said the average volume generated by the top ten clients of the company amounted to $118 million, up from $108 million in the previous quarter. Revenues earned from this segment had increased by 51 per cent in the last year, he observed. “We have a robust pipeline of 25 deals, each worth more than $1 million,” he added.
Wipro's emphasis had been on “simplification and standardisation, commercialisation of IT and in the area of performance and analytics,” Mr. Kurien said. “The analytics business is our fastest growing service line. Analytics is not merely about deploying bodies to reduce costs for clients. Analytics has to be linked to performance management in order to deliver added value to customers,” he said. More than 5,000 employees were working on the mobility applications, he added.
Mr. Kurien said Wipro had not been facing ‘pricing pressure' on its offshoring side of its business. The lower price realisation in some segments was mainly because of “the ramping-up of fixed price projects during the last quarter,” he said.
