The Hindu Business Line : Wipro sees higher revenues in H2

Chennai, July 18 Wipro Ltd on Friday sang the same tune that TCS and Infosys did in the past week: that ‘the environment is challenging’. The inference is that caution is the watchword.

Bright points that emerged from the earnings call with analysts included orders that Wipro got from clients in the manufacturing and retail arena. In his opening remarks, Mr Azim H. Premji, Chairman, Wipro, indicated that investments the company had made earlier in India and West Asia, particularly in addressing the retail sector, were bearing fruit.

Despite these wins, the company has said that it looks to post sequential revenue growth of only 2 per cent, in dollar terms, for the September quarter. Mr Girish Paranjpe, Co-CEO, Wipro, explained this saying, “While we have won deals in the hi-tech sector (including an order from a large high quality audio manufacturer and an equipment manufacturer in the computing space), retail and manufacturing, revenues will come in significantly only in the second half of the year beginning October 2008. There have been ramp-downs and reduction of business volume for some clients.”

Client prospects

Mr Sudip Nandy, Chief Executive for the telecom and product engineering businesses in Wipro, said, “There is uncertainty among telecom equipment vendors. If we see a ramp-down on a particular technology from a client, the same client comes back to us with a ramp-up in another technology.”

He added that it could take till the quarter ending March 2009 for telecom equipment vendors to see stability, “assuming the space sees no more acquisitions or consolidation”. Mr Pratik Kumar, Corporate Vice-President at the company, said, “The wage hike should be in the 8-9 per cent range . ”

More Stories on : Outlook | Software | Wipro Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Fire at Airtel office building hits mobile services in Mumbai

RCom, MTN call off talks for deal

RCom handsets at Rs 999

IMImobile in AlwaysOn list

IBM launches more ‘green’ tools

Elcot to build 50,000 sq ft of office space

Satyam delivers on profit growth; outlook clouded

Satyam Q1 net up 45 pc

Sasken bucks slowdown; profit up 115% in Q1

Maples ESM expanding overseas

Helping women break the ceiling

Polaris to foray into realty

Wipro Q1 net grows 25% at Rs 908 cr

Satyam pursuing 20 large deals

Wipro sees higher revenues in H2

Jobs shift to India helps iGATE