Wipro Q1 revenue boosted by deals in application and infrastructure space

IT services vendor Wipro today said its sales rose 15.5 percent to $1.9 billion (Rs 11,245.5 crore) in the April-June quarter of fiscal 2014-15, while net profit grew 29.5 percent to $351 million (Rs 2,103.2 crore).

Large deals in the application and infrastructure space have contributed to the growth, said Wipro.

Wipro Chairman Azim Premji said: “We see a significant rise in business confidence in developed markets as well as India. The new government at the Centre has brought about hope and confidence in the minds of all stakeholders through reform pronouncements with fiscal prudence.”

Wipro said its Q2 revenue from IT Services rose 9.6 percent to $1.74 billion.

For the July-September quarter, the IT services revenue will be in the range of $1.77 billion-$1.81 billion, said Wipro.

Wipro CEO T K Kurien said: “We continue to win large deals particularly in the application and infrastructure space. We recently announced our largest ever total outsourcing deal. These wins demonstrate confidence of clients in Wipro’s transformational capabilities and re-affirm their faith in its client engagement strategy.”

The IT services segment had 147,452 employees as of June 30, 2014 and the firm added 35 new customers for the quarter.

“It has been a lukewarm period overall for the IT industry at large, including Wipro. That said, few contracts over the last quarter has helped Wipro get access to more high-profile deals at a time when outsourcing demand looks stronger as compared to previous years,” said Greyhound Research CEO Sanchit Vir Gogia.

Wipro’s IT products segment dipped 6 percent to Rs 770 crore, after Wipro’s strategy to focus on services business by engaging in selective transformational deals where products form an integral part of the solution.

Segment wise, BFSI contributed the most towards Wipro’s revenues in the first quarter followed by Manufacturing & Hi-tech, Energy, Natural Resources & Utilities, Global Media & Telecom, Retail, Consumer, Transport & Government and Healthcare & Life Sciences.

Geography wise, the US was the main revenue generator followed by Europe, Rest of the World and India.

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