Financial Daily from THE HINDU group of publications
Friday, May 31, 2002
Wipro sees upswing across verticals
BANGALORE, May 30
THE enterprise solutions business of Wipro Ltd is seeing volume pick-up across its verticals month-on-month, the President, Enterprise Solutions, Mr Sudip Bannerjee, said.
``There is growth across all the verticals retail, manufacturing, utilities,'' he said. Traction in the newly formed government vertical is also picking up, he added.
``If this trend continues, there is going to be an upswing,'' he said.
Declining to detail expected volume growth in the current fiscal, which could be offset to some extent by rate cuts, Mr Bannerjee said, ``all I can say that is there is volume pick up.''
Moreover, he did not comment on market talk that enterprise solutions could report a four per cent volume growth, offset by two per cent price drop on a year-on-year basis.
``There are increasing client visits, proposals and indications of more business situation,'' he said. Commenting on pricing, Mr Bannerjee said that ``market is bottoming out''.
The company is currently on a drive to exhaust its existing capacity and will recruit to service its new wins, he added.
It can be recalled that most of the Indian software services firm have indicated volume driven growth in the current financial year as pricing continues to be under pressure tracking sluggish corporate IT spending.
Earlier in its annual earnings conference for fiscal 2001-02 Wipro said that accelerated growth in the enterprise solutions businesses through creation of new verticals had boosted volume initiatives.
``If volume is growing that's good news, but at what cost?'' cautioned an analyst with a top European brokerage.
If the price drop is steep on the back of large order commitments, then regaining the higher price points going forward could be difficult, he added.
Send this article to Friends by E-Mail
Stories in this Section
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line