Wipro’s business outlook unchanged despite slowdown

BANGALORE: India's second largest software exporter Wipro Ltd's business

outlook remains unchanged despite the US slowdown, a senior official said on

Friday.

A warning by software services and education firm NIIT on Wednesday of lower

US software revenue growth has dampened sentiment for the Indian software sector

on the bourses.

"There is no change in our stand from what we had communicated to

investors last time," Suresh Senapaty, corporate executive vice-president

of Wipro, told Reuters when asked about its prospects in the light of NIIT's

warning.

Wipro told analysts after the October-December results in January that it was

optimistic about growth prospects because its revenue streams had a defensive

profile.

For one, its offshore development work contributed 59 per cent and was a

stable business that would see continuing demand. Secondly, its top five

customers accounted for less of its total revenue than before and thirdly

business from Europe and Japan was growing.

Wipro’s top five clients account for 29 per cent of its revenue now and

Europe and Japan contribute 36 per cent.

Wipro's October-December net profit rose more than three-fold and revenue

increased 39 per cent.

"We are concentrating on the fundamentals," vice-chairman Vivek

Paul told analysts then.

"We're saying what's our business profile, how do we drive it and we

continue to think that the opportunity for Indian companies is very

robust," he had said.

NIIT's chairman Rajendra Pawar told Reuters on Friday that its January-March

revenue would be $7 million less than previously forecast because two of its

long-time clients were merging and had put off projects, and some new orders

were being delayed.

Infosys Technologies, India's third largest software exporter, said on

Thursday its business prospects were intact.

Wipro's shares ended 12.82 per cent lower at Rs 1,935, Infosys 5.79 per cent

down at Rs 4,817.50 and NIIT 16 per cent down at Rs 842.90 on Friday, while the

Bombay Stock Exchange dropped 4.31 per cent.

(C) Reuters Limited 2001.