Wipro, India’s third-largest software services exporter, beat
first-quarter profit expectations on Friday July 20,2018buoyed by higher Banking,
Financial Services and Insurance (BFSI) revenue.
Net profit for the three months to 30 June rose to ₹2,121 crore ($307.55 million) from ₹2,077 crore a year earlier, the Bengaluru-headquartered company said in a statement on Friday.
That topped the ₹1,952 crore profit expected by analysts, Thomson Reuters data showed.
IT services revenue grew by about 5% to ₹13,700 crore in the first quarter while the BFSI business grew 17.5% to ₹4,110 crore.
Wipro said it expected IT services revenue to grow 0.3-2.3% quarter on quarter for the three months to 30 September. IT services revenue is expected to rise to between $2.01 billion and $2.05 billion, it said, excluding the impact of its divestment of its hosted data centre services business.
“We have seen a pick-up in spending in the developed markets, particularly in North America and BFSI,” said Chief Executive Officer Abidali Z. Neemuchwala.
India’s $154 billion software services industry, led by Tata Consultancy Services and Infosys Ltd, faces tighter margins in legacy businesses such as routine infrastructure maintenance as clients increasingly demand more work for less money.
Still, Tata Consultancy Services this month posted a record profit helped by a rebound in its financial services business.
Infosys reported a rise in net income but missed estimates
Net profit for the three months to 30 June rose to ₹2,121 crore ($307.55 million) from ₹2,077 crore a year earlier, the Bengaluru-headquartered company said in a statement on Friday.
That topped the ₹1,952 crore profit expected by analysts, Thomson Reuters data showed.
IT services revenue grew by about 5% to ₹13,700 crore in the first quarter while the BFSI business grew 17.5% to ₹4,110 crore.
Wipro said it expected IT services revenue to grow 0.3-2.3% quarter on quarter for the three months to 30 September. IT services revenue is expected to rise to between $2.01 billion and $2.05 billion, it said, excluding the impact of its divestment of its hosted data centre services business.
“We have seen a pick-up in spending in the developed markets, particularly in North America and BFSI,” said Chief Executive Officer Abidali Z. Neemuchwala.
India’s $154 billion software services industry, led by Tata Consultancy Services and Infosys Ltd, faces tighter margins in legacy businesses such as routine infrastructure maintenance as clients increasingly demand more work for less money.
Still, Tata Consultancy Services this month posted a record profit helped by a rebound in its financial services business.
Infosys reported a rise in net income but missed estimates
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