Telecom Lead India: IT major Wipro has posted revenues of
Rs 106.53 billion ($1.92 billion) for Q1 FY13, up 24 percent , as compared to
Rs 84.64 billion for the same quarter a year earlier.
Net income increased 18 percent y-o-y to reach at Rs
15.80 billion ($284 million). Income was Rs 15.74 billion ($283 million1), an
increase of 19 percent Y-o-Y.
The company’s IT services revenues stood at $1.51 billion
for Q1 FY13, down 1.4 percent sequentially, against $1.51 billion for Q4 FY12.
IT Services stood for 78 percent of total revenue and 93
percent of Operating Income for the quarter ended June 30, 2012)
Global Media and Telecom vertical fetched 14.9 percent of
total revenue in Q1 FY13, down 4.9 percent from 16.8 percent of total revenue
in Q1 FY12.
Region-wise, America fetched 51.6 percent of total
revenue in Q1 FY13, down from 53 percent of total revenue in Q1 FY12. Europe
totaled for 28.1 percent in Q1 FY13, down marginally from 28.6 percent in Q1
FY12.
India and Middle East business totaled for 8.8 percent of
the total revenue in Q1 FY13, down from 9 percent in Q1 FY12.
APAC and other emerging countries fetched 10.2 percent of
total revenue, increased from 8.3 percent in Q1 FY12. Japan increased
marginally to 1.3 percent in Q1 FY13 from 1.1 percent in Q1 FY12.
Revenues from the existing customers totaled for 99.3
percent of total revenue.
In today’s complex business environment, global
corporations are increasingly investing in transformational technology
initiatives to improve competitiveness. We see this shift as an opportunity for
us to lead this change and help customers differentiate in this fast evolving
market,” said Azim Premji, chairman of Wipro.
The company expects revenues from IT Services business to
be in the range of $1,520 million to $1,550 million.
We have delivered revenues in line with our guidance in
a volatile environment. We will continue to build differentiation and invest in
technology driven business transformations for our customers as well as
rewarding our talent,” said T K Kurien, executive director & chief
executive officer, IT Business.
During the quarter, Wipro won a multi-year contract to
implement MPLS Network for Powergrid, India’s Central Transmission Utility (CTU),
which is responsible for the complete inter-State power transmission system.
Wipro’s results were below expectations. The volume
growth of about 0.8 percent came in line with the guidance but was lower than
peers. EBIDTA margins also disappointed. The guidance for 2Q also reflects the
macro uncertainty and the limited revenue visibility for the company.
Wipro has been restructuring its business and this, along with the
uncertain demand scenario, has impacted revenue growth. The performance will
improve in line with the improvement in the macro scene,” said Dipen Shah, head
of Private Client Group Research, Kotak Securities.
editor@telecomlead.com