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Our Bureau

Bangalore, July 19

Wipro said on Thursday that it was looking for acquisitions in Germany and Canada to take advantage of the growing markets there.

The Chairman of the company, Mr Azim Premji, said the company was planning to invest in Germany and Canada. “Germany is an important growth market for us. We are also putting in investment in Canada as we are late starters there,” Mr Premji said.

“We are looking at inorganic growth through acquisitions in Germany as well as in Canada,” he added. Further, Mr Premji said the company was making additional investments in the West Asia, another important growth market.

The Chief financial officer, Mr Suresh Senapaty, said the company was charging new clients 4 to 5 per cent higher than its average billing rates. “We are also renewing existing deals at 2.5-4 per cent above the average billing rate,” he said.

Wipro saw a 0.2 per cent decline in blended pricing during the June quarter, which Mr Senapaty termed as an aberration. However, overall pricing remained “flattish” on quarter because of a change in the kind of software services it offered to its overseas clients, he said.

Further, Mr Senapaty said the company expects to maintain margin in the coming quarters, despite proposed wage hikes in the current quarter through operational efficiencies. Wipro expects a 1.4-1.5 per cent impact on its operating profit margins (OPM) in the current quarter due to wage hikes for its offshore employees which would be in range of 12-13 per cent, Mr Senapaty told analysts. OPMs of Global IT business stood at 22 per cent during the June quarter.

More Stories on : Software | Mergers & Acquisitions | Overseas Investments | Wipro Ltd

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