* Q1 net profit 21.03 bln rupees vs 21.24 bln forecast
* Sees Q2 IT services revenue up 1.7-4 pct from June quarter
* CEO expects second half of fiscal year to be better than
(Adds management, analyst comments)
By Lehar Maan and Sruthi Ramakrishnan
BANGALORE, July 24 Wipro Ltd, India's
third-biggest software services exporter, forecast strong
revenue growth on the back of higher outsourcing spending by
overseas clients and said it was focussing on winning more deals
Bangalore-based Wipro, which inked a 10-year deal to manage
IT outsourcing for Canadian energy and utilities firm Atco on
Friday, said it expected IT services sales in this quarter to
grow between 1.7 and 4 percent from the quarter ended June.
IT services revenue in Wipro's fiscal first quarter that
ended on June 30 rose 1.2 percent from the previous quarter to
$1.7 billion, as it added 35 new clients.
Consolidated net profit for the quarter grew 29.6 percent
from a year earlier to 21.03 billion rupees ($349.9 million),
slightly below consensus estimates of 21.24 billion rupees.
Total revenue rose 14 percent from a year earlier to 111.4
Wipro is part of the $108 billion-a-year Indian outsourcing
sector that generates about 90 percent of its revenue from
providing services such as IT network installation and the
development of software applications for overseas clients that
are looking to raise spending on technology.
Wipro, whose chairman is billionaire Azim Premji, got nearly
half of its IT services revenue in the June quarter from the
Americas, its biggest export market, and about 30 percent from
"Europe market is hot, so we are focussed on making sure we
have our fair share of wins there," Chief Executive Officer T.K.
Kurien told reporters at a news conference after the results.
"All we can say (is the) second half of the year will
hopefully be better for us than the first half of the year," he
said about overall growth in the fiscal year that started on
Sarabjit Kour Nangra, a sector analyst at Mumbai brokerage
Angel Broking, said Wipro's revenue guidance was "pretty
"It's an indication that the momentum is building and
subsequent quarters will be better," Nangra said.
Wipro's bigger Indian rivals Tata Consultancy Services Ltd
and Infosys Ltd said this month they are
boosting investment in new technologies.
Wipro shares ended up 1 percent at 576.85 rupees ahead of
the announcement, while the main Mumbai market index
closed 0.5 percent higher. The stock is up 3.2 percent so far
this year, lagging a 24 percent rise in the broader market.
($1 = 60.1100 Indian Rupees)
(Additional reporting by Nivedita Bhattacharjee in MUMBAI;
Writing by Devidutta Tripathy; Editing by Miral Fahmy and David