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Wipro riding high on Europe & US growth [Mail Today (India)](Mail Today (India) Via Acquire Media NewsEdge) WIPRO reported 28.8- per cent jump in net profit for the fourth quarter on Thursday helped by a revival in Europe, robust growth in the US and a cost optimisation drive but disappointed analysts with its muted guidance for the first quarter of 2014- 2015. Profit rose to ` 2,226.5 crore in January- March quarter from ` 1,728.7 crore a year earlier, Wipro said in a statement. Net sales grew 21.7 per cent to ` 11,703.6 crore from ` 9,613.1 crore a year earlier. Wipro pulled in IT services revenues of $ 1.72 billion, a sequential rise of 2.5 per cent— this is against the three- per cent growth HCL reported, 1.9 per cent Tata Consultancy Services and 0.4 per cent de- growth Infosys. Wipro's growth during the quarter was led by business process outsourcing, which grew 12.5 per cent over the December quarter. Media and telecom, BFSI and health care and life sciences led growth from a vertical perspective. Infosys positively surprised the Street with a 150 basis- point expansion in operating margins, which came in at 24.5 per cent— the highest the company could muster this year and far higher than the 20.7 per cent reported in 2012- 2013. The company's outlook for the June quarter disappointed the Street so much so that some analysts now doubt if Infosys can match up to the annual average industry growth in 2014- 2015. Infosys said that it would rake in revenues between $ 1.71 billion and $ 1.76 billion in the first quarter— at the lower end, it implies a sequential shrinkage in topline. Wipro's management put up a brave front at a press conference held in Bangalore. Chief executive T. K. Kurien said that the first quarter was not a precursor to the full year. "The first quarter will be impacted by seasonality in the India business. It is always our weakest quarter," he said adding Infosys will bounce back in the second quarter because its order book is good. "The demand is stable in North America and Europe. We have booked orders. As the execution cycle follows, the topline would grow." Sanjeev Hota, analyst, Sharekhan, said that he is both disappointed with the topline as well as the guidance. "The margins were the only surprise. I had expected the company's topline to come in well above three per cent." The steady improvement in global economy … presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective market — AZIM PREMJI, Chairman, Wipro ' ' (c) 2014 India Today Group. All Rights Reserved. Provided by Syndigate.info, an Albawaba.com company |