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Robust deal wins are yet to translate into higher revenues for Wipro. Though the company has been winning several new deals every quarter, its revenue growth in the September quarter disappointed the Street. The company’s dollar revenues from IT (information technology) services grew 1.8 per cent sequentially to $1.77 billion, below analysts’ estimates. Analysts claim if growth does not revive in the second half of the year, then Wipro’s revenues would grow in single digits, well below the industry’s double-digit growth.
The company, however, believes its growth strategy is in place and that execution will be key from here on. Without giving the details on revenue growth for the full financial year (2014-15), T K Kurien, executive director and chief executive of Wipro, maintained growth in the second half of FY15 would be better than the first. The company expects revenues from its IT services business to be between $1,808 million and $1,842 million, which implies a sequential growth range of two to four per cent.
From an operational point of view, the firm added 50 new clients during the quarter. The revenue from existing clients in the September quarter has declined to 98.6 per cent from 99.6 per cent in the June quarter. The share of top 10 customers has also declined during the September quarter to 21.5 per cent from 21.8 per cent a quarter ago and 22.8 per cent a year ago.
From a service line perspective, the share of global infrastructure services has grown to 26.8 per cent from 25.3 per cent in the June quarter. Advanced technology solutions, too, has grown marginally on a sequential basis. The share of ADM (application, development and maintenance) has declined to 16.4 per cent from 18 per cent in the June quarter. Other than health care and energy, all other verticals have also dropped sequentially.
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