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A historically muted first quarter ending June is the reason Wipro gives for its lesser-than-expected revenue estimates for the IT services business - $1394-1422 million. (Comparable dollar revenues for the just-ended March quarter stood at $1400 million.)
“Q1 (ending June of the year) has always been weak for Wipro and hence the muted guidance. The guidance also accounts for the company's efforts to be pro-active (in created demand) rather than reactive; and to re-orient the field force,” said the Chief Financial Officer, Mr Suresh Senapaty.
Mr Dipen Shah, Senior Vice-President (Private Client Group Research), Kotak Securities: “The revenue guidance is disappointing and reflects the impact of the restructuring process currently underway.”
Though the company does not give out guidance for the full year, it says it will be on par or exceed the industry's expected growth rates of 16-18 per cent this year.
Mr Azim Premji, Chairman, Wipro, said: “Last year, the macro-economic environment was less predictable and more volatile. In FY12, the demand environment seems more stable and predictable. Discretionary spending has picked up.”
He added that customers are investing for revenue enhancement and new product introductions.
“There are more opportunities for integrated offerings and deeper client mining. Our sales engine is being revved up to go after these opportunities.”
The company has identified banking and financial services, healthcare, energy & utilities and retail as momentum verticals, while the emerging markets showing promise are India, APAC, Australia and Latin America. Wipro is also investing in the area of analytics, mobility and cloud (computing), said Mr Premji.
The software firm is also keen to get more revenues out of existing clients.
The company points to evidence in the form of rising number of clients accounting for more than $100 million in annual revenues.
This figure rose to three clients, two more than a quarter ago.
Manpower
IT services added 2,894 employees (net) in the quarter and 14,314 people for the whole year, taking the total headcount to 1.22 lakh. Significantly, the net headcount addition for the March quarter is the lowest for the company in the last four quarters.
Wipro has announced a 12-15 per cent salary hike for employees offshore and 2-4 per cent for onsite staff effective June 1.
The company declared a final dividend of Rs 4 a share, taking the total dividend during the year to Rs 6 a share.
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