After a five year struggle since the economic slow-down in 2008, Wipro’s reports of 2.5 percent profit rise yesterday shows bright future for the end of this fiscal quarter.
According to Reuters, the Bangalore, Indian company plans to enhance its business conditions and outsourcing services.
While one United States dollar is equal to 59 rupees in India, profit climbed to about 2.6 percent to 16.23 billion rupees, which matched the median of the estimates of 38 analysts, according to Bloomberg.
For the first fiscal quarter, revenue increased 5.2 percent to 97.3 billion rupees, two billion short of analyst estimates.
“The guidance is a significant jump over this quarter’s expectations,” Amar Mourya, analyst from Mumbai, said.
The revenue of the actual growth last quarter of 0.2 percent was slower than the estimated revenue growth.
Wipro said revenue should increase from 2 percent to 3.9 percent or from $1.62 billion to $1.65 billion through September.
According to the Wall Street Journal, India’s outsourcing companies get over half of their revenue from the U.S. They look forward to an increase in spending in the U.S. and Europe.
Even though India accounts for 10 percent of the company’s revenue, “The results for the fiscal quarter were weighed down by a slowdown in the company’s business in India,” chief financial officer, Suresh Senapaty, said.
The company said it expected growth through March of 2014, opening a connection to potential contracts, according to WSJ.
Chief executive of Wipro, T.K. Kurien, said that the development of contracts is slow but the closure rate of contract has improved. Reuters said Wipro added 28 new clients this year.
“We’re seeing higher confidence among our clients on the backdrop of positive macroeconomic developments particularly in the U.S.,” chairman of Wipro, Azim Premji, said in a news release last Friday.
While exports rose 13 percent and stocks grew 8.6 percent this year, the company saw an increase in IT revenue. Bloomberg said that based on 57.24 to one U.S. dollar, revenue from IT services increased to $1.59 billion in the second quarter that ended on June 30.
Wipro’s expectations were up from $1.575 billion to $1.61 billion. Shares also rose 1.5 percent to 381.95 rupees.
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