Wipro Ltd , country's No. 3 software services exporter, on Monday posted a 1 per cent rise in quarterly profit, beating street estimates, helped by a weaker rupee and rise in spending on outsourcing by overseas clients.
Bangalore-based Wipro forecast third-quarter revenue of $ 1.50 billion to $ 1.53 billion from its IT services unit, which accounts for three-quarters of its total revenue, a rise of 2 percent to 4.1 percent from the second quarter.
Country's showpiece $76 billion industry gets more than 90 per cent of its revenue from providing technology services to overseas clients and counts the United States and Europe as its biggest markets.
Europe is the second largest market for the software firms, and the euro zone debt crisis is a worry for the sector that has been looking to increase its sales to the region to hedge against their excessive exposure to the United States.
Country's showpiece $76 billion industry gets more than 90 per cent of its revenue from providing technology services to overseas clients and counts the United States and Europe as its biggest markets.
Europe is the second largest market for the software firms, and the euro zone debt crisis is a worry for the sector that has been looking to increase its sales to the region to hedge against their excessive exposure to the United States.
Total revenue rose 18 per cent to Rs 9094 crore, as the company added 44 new clients in its IT services business.
This compares with a media poll forecast of Rs 1276 crore on net sales of Rs 8928 crore for the company, which counts Citigroup , Cisco and Credit Suisse among its clients. Top software exporter Tata Consultancy Services Ltd posted a slightly lower-than-expected rise in quarterly profit earlier this month, while No. 2 Infosys met street forecasts in its earnings.
The top two outsourcing companies, however, sounded caution about the business outlook in the near-term due to the global economic uncertainty.
The company is not seeing pressure on the prices that it charges for its services and spending on technology by its clients has been good, its chief financial officer Suresh Senapaty said.
Wipro's shares, valued at about $18.30 billion, have fallen nearly 24 per cent this year, compared with a 16 per cent drop in the sector index and a 12.6 per cent fall in the Mumbai index .
This compares with a media poll forecast of Rs 1276 crore on net sales of Rs 8928 crore for the company, which counts Citigroup , Cisco and Credit Suisse among its clients. Top software exporter Tata Consultancy Services Ltd posted a slightly lower-than-expected rise in quarterly profit earlier this month, while No. 2 Infosys met street forecasts in its earnings.
The top two outsourcing companies, however, sounded caution about the business outlook in the near-term due to the global economic uncertainty.
The company is not seeing pressure on the prices that it charges for its services and spending on technology by its clients has been good, its chief financial officer Suresh Senapaty said.
Wipro's shares, valued at about $18.30 billion, have fallen nearly 24 per cent this year, compared with a 16 per cent drop in the sector index and a 12.6 per cent fall in the Mumbai index .
No comments:
Post a Comment