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Wipro results round out strong Indian tech earnings |
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-September. 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. |
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