Wipro Q4: IT revenues seen up 4.9% QoQ

Wipro is expecting a 4.9% quarter-on-quarter (QoQ) increase in global IT services revenues to $955 million for the fourth quarter ending March 31, 2008 when compared with $910.1 million in Q3FY08.

Giving the outlook in a release issued to the BSE today, Azim Premji, chairman, Wipro, said: "The results for the quarter are satisfying. We continue to see good momentum in all our businesses. Revenues from our global IT services at $910.1 million were ahead of our guidance of $905 million. Our financial services business grew nearly double digit sequentially during the quarter despite this being challenging times for the sector. We had strong growth in our BPO business and testing services. We also had our retail and healthcare verticals growing ahead of our company growth rate. Our top 10 customers grew at a healthy rate during the quarter, and we won a good set of new clients. On the operational front,  we have seen a 200 basis points increase sequentially in the mix of our revenues from fixed price projects. Our price realisation improved during the quarter by about 50 basis points sequentially.

"Our India, Middle East and Asia Pacific IT business won a large total outsourcing deal in the telecom sector, which is representative of the increasing size of deals in the Indian market, and of our abilities to offer transformational solutions to customers. This win clearly indicates the leadership position we enjoy in this segment.

"Looking ahead, for the quarter ending March 2008, we expect our revenue from our global IT services business to be approximately $955 million."

Chief financial officer Suresh Senapaty said: "During the quarter ended December 2007, improved realisations and rationalisation of bulge mix helped us fully mitigate the pressure on profitability on account of foreign exchange impact. The drop in our global IT margins by 100 bps sequentially was primarily on account of our Infocrossing acquisition. We have seen an increase in the number of $50 million clients, and now have our first $100 million client."