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Wipro posts flat Q1 revenue but sees better days ahead

India's fourth-largest IT services exporter reported June quarter numbers that was in line with its own guidance but lagged other large-tier IT services companies by a yawning margin in growth.

twitter-logoGoutam Das | July 26, 2013 | Updated 19:23 IST

India's fourth-largest IT services exporter Wipro on Friday reported June quarter numbers that was in line with its own guidance given at the end of the March quarter but lagged other large-tier IT services companies by a yawning margin in growth.

The Azim Premji-led Wipro reported a flat top line rise in dollar terms over the previous quarter - revenues inched up just 0.2 per cent to $1.58 billion. In contrast, India's largest IT services company TCS grew its top line by 4.1 per cent, Infosys 2.7 per cent and iGate 3 per cent sequentially in the June quarter.

In rupee terms, the company reported revenues of Rs 9,735 crore and profits of Rs 1,623 crore, up 3 per cent over the previous quarter's Rs 1,576 crore.   

Despite currency benefits during the quarter, operating margins at 20 per cent, declined slightly because of salary hikes and investments in sales.

Wipro, however, held out hope for a better future - it said September quarter revenues will be up between 2 per cent and 4 per cent in dollar terms. The management sounded more optimistic about its prospects in the backdrop of improving macroeconomic climate in the United States.   

"We see the demand environment improving beyond the first quarter. Discretionary spend is returning in specific pockets. We saw pickup in deal closures and the momentum can continue," CEO T.K. Kurien said during a press conference.    

Wipro ended the day Rs 382.80 on the BSE, up 1.74 per cent. The BSE Sensex ended at 19,748.19, down 0.29 per cent. Wipro announced results after markets closed on Friday.

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