Wipro may clock double-digit growth in coming years: Azim Premji

Wipro Chairman Azim Premji on Friday said the IT services firm is poised for double-digit growth in the coming years as the US market is recovering and consumer spending improving.

But investors are cagey about Wipro’s short-term growth.

Brokerage house KR Choksey expects Wipro to report a 3 percent growth quarter-on-quarter and 12 percent growth year-on-year in net profit at Rs 1615 crore in the first quarter (April-June) of FY 2013.

Wipro’s Q1 revenues are expected to increase 3 percent q-o-q (up 9 percent y-o-y) to Rs 9882 crore, according to KR Choksey.

IT services revenue growth is expected to be 0.7 percent q-o-q in constant currency terms (against the guidance of -0.5 percent to 1.5 percent q-o-q growth) whereas adverse cross currency movements will adversely impact revenue growth in USD terms by 70 bps q-o-q.

The brokerage firm expects the overall revenue growth to be muted led by weakness in Indian geography.

Azim Premji says Wipro can achieve growth levels in double-digits of at least 15 per cent in US dollar terms in the coming years as the US market is on path to recovery and there is an uptick in consumer sentiment, PTI reported.

Addressing the AGM, Wipro Chairman said that the US market is looking better than what is was 3-4 months ago and it seems to have stabilized and consumer sentiment is picking up. The equity markets are also much better now.

Besides, the Middle-East market is also looking good, Premji said. ( Live: Wipro adds 2,907 IT and BPO jobs in Q4 FY 2013, BPO attrition @ 13.3% )

European markets are more or less flat, he said, adding that he is neither pessimistic or optimistic about it.

The picture in India is not, however, conducive. Demand environment in India is not encouraging and the market is not in good shape. There is a general sense of indecision on the policy front, which in turn affecting businesses leading to big projects getting stalled, he added.

Wipro’s rival TCS had posted 16 per cent growth in Q1 profit, while Infosys better than expected Infosys had posted 3.7 per cent growth in profit.

Premji said he is hoping that there will be stable workable conditions after the general elections next year.

Premji also said that before the next AGM, the company will have a woman director on board and he is working towards it.

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