India’s Wipro profits up by 24 per cent, beating forecasts
BANGALORE: India’s third-largest software firm Wipro said on Friday that their second quarter net profit rose 24 per cent, beating forecasts, thanks to the outsourcing orders the firm secured despite global uncertainty.
Net profit for the three months to September rose to 16.11 billion rupees ($301 million) from 13.01 billion rupees a year earlier, based on international accounting norms.
Analysts had forecast net profit of 15.23 billion rupees, according to consensus poll by Dow Jones Newswires.
Total revenue for the quarter rose 17 per cent to 106.20 billion, Wipro said in a statement to the Bombay Stock Exchange.
The Bangalore-based company announced on Thursday that its non-technology operations would be separated into a new firm, allowing it to focus on its core business.
Last month, India’s biggest outsourcing firm TCS posted a 44 per cent rise in quarterly profit, beating estimates, while earnings of Infosys disappointed investors with lower-than-projected revenue, even though profits increased.
TCS and Infosys lead India’s flagship IT outsourcing industry, which carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and software development.
India, with its large English-speaking workforce, accounts for at least 50 per cent of the global outsourcing market.
Most of India’s IT outsourcing firms say the outlook for the industry remains challenging because of uncertainty in their key US and European markets.