* Q3 profit 20.15 bln rupees vs 19.95 billion rupees
* Sees Q4 revenue growing 2-4 pct including acquisition
* Exec says eyeing acquisitions in financial services sector
By Lehar Maan
BANGALORE, Jan 17 Wipro Ltd is eyeing
more lucrative financial industry contracts from Europe and the
United States to catch up with its bigger rivals, as India's No.
3 outsourcing services provider looks to grow its sales by up to
4 percent in this quarter.
Like its rivals Infosys Ltd and Tata Consultancy
Services Ltd, Wipro is banking on a revival in demand
for IT services from the industry's biggest markets as the
economies of the United States and Europe improve.
"As the global economy is progressing towards stability, we
see optimism amongst clients, especially in the West," Chairman
Azim Premji said, after Wipro reported a slightly
higher-than-expected net profit for the December quarter.
India's $108 billion outsourcing sector generates more than
90 percent of its sales from providing services, including
setting up IT networks and developing software applications, for
Banks and insurers like Citigroup, Bank of America
Corp and British insurance group Aviva are among
the biggest spenders on technology services, ranking among the
top clients for Indian IT oursourcing firms.
The company, owned by billionaire Premji, generated about 26
percent of its sales from its financial clients in the December
quarter, lagging the nearly 34 percent notched by Infosys and 43
percent at Tata Consultancy.
Wipro, which has been trying to grow its share of revenues
from financial clients, said sales at its financial solutions
business grew about 3 percent over the previous quarter, faster
than 0.5 percent rise at TCS and a 2 percent growth at Infosys.
Last month, Wipro agreed to buy a U.S.-based mortgage
services provider to boost its offerings for financial services
Wipro expects to add new clients and is looking for
acquisition opportunities in the financial sector to boost
growth, its Chief Executive T.K. Kurien told reporters.
"BFSI (Banking, financial services and insurance) is a large
piece for everybody and that's where the bulk of the IT services
spends are and you need that to really drive growth and meet
industry growth. So they are in the right direction," said Nitin
Padmanabhan, an analyst with Espirito Santo brokerage.
NEW CLIENTS BOOST SALES
Wipro said revenue in its main IT services business in the
three months to March 31 will be in a range of $1.71 billion to
$1.75 billion, a rise of 2-4 percent from the previous quarter,
matching analyst estimates. The outlook included revenue from
its acquisition of the mortgage services provider.
"From an organic perspective, (the outlook) is possibly a
little disappointing. But, otherwise commentary is pretty solid
and possibly growth should improve as it goes through the year,"
The company's consolidated net profit from continuing
operations for the three months ended Dec. 31 rose to 20.15
billion rupees ($327 million)from 15.9 billion rupees a year
earlier, Wipro said in a statement on Friday.
That compares with the 19.95 billion rupee mean estimate of
analysts surveyed by Thomson Reuters I/B/E/S.
Revenue at the company's IT business rose 6.4 percent to
$1.68 billion in the quarter, as the company added 42 new
Tata Consultancy and Infosys also beat net profit estimates
for the December quarter.