BANGALORE, INDIA: Wipro's quarterly results failed to meet expectations with 1pc growth, although the company met its projected guidance of 1.1pc sequential growth and touched $1,794 million.
The company's peers, TCS and Infosys reported a revenue growth of 3.5pc and 5pc growth, respectively.
T.K. Kurien, chief executive officer, Wipro, said, “It is not a roaring start to the quarter. The drop in energy business was 33pc last year. But our guidance coupled with what we expect from the next couple of quarters, we believe the second half of the year will be better than the first half.”
Although the company expects to grow in double-digit year-on-year revenue growth this year, its declined revenues in the first quarter will be a major roadblock to overcome.
Dipen Shah, head of private client group research, Kotak Securities, said, “Wipro’s revenue growth of 0.2pc in constant currency terms was slightly lower than estimates. Growth was largely impacted by continuing softness in the Energy vertical. However, the 2Q guidance of 1.5pc - 3.5pc in slightly ahead of expectations.”
Wipro continued its investments in start-ups and has taken minority stakes in two US-based technology firms — Talena and Vicarious. The comapany has also been investing in its digital space and acquired Designit earlier in July and also won deals from Allied Irish Bank and the Lawn Tennis Association of the UK. Overall, the company added 36 new customers during the quarter. The company expects to grow its revenue next quarter with these deals.
Thomas George, head, CMR, said, "From geography perspective Europe has been down by 5pc QoQ in constant currency term. Acquisition of Designit is likely to contribute in the next quarter and will closely contribute to 0.3pc to the company's growth."