Technology major Wipro on Tuesday said it has increased market visibility and expects more stability in business volumes and pricing in  the coming quarters. During Q2, Wipro posted consolidated total income of Rs 7057.4 crore and net profit of Rs 1,162 crore, a year on year growth of 6% and 19% respectively. The company’s IT services brought in revenues of Rs 4,996 crore, a growth of 5%.

Addressing a media conference to announce the company’s second quarter results, Wipro chairman Azim Premji said there was a certain amount of optimism and positive news in the market, though the macro picture remained fragile and clients continued to focus on cost cuts and capital conservation.

‘‘In my talks with CEOs of Fortune 1000 companies, I find the sentiment more upbeat than before,” he said. Infosys and TCS, which announced their Q2 results earlier this month, had also signalled the beginnings of a recovery from the downturn the tech sector suffered following the crisis in the financial sector that hit many of their core clients.

During the quarter ended September 30, Wipro has seen strong growth across energy & utilities, healthcare, manufacturing, retail and services domains. Banking and finance, the worst hit by the recession, too has shown acceleration in volumes.

‘‘Our pipeline is the highest that we have seen and order booking is strong. We continue our momentum of winning larger, more complex, end-to-end integrated deals,” said Premji. Wipro CFO Suresh Senapaty said the company’s commitment to operational improvements continued to pay dividends. Margins for the IT services business stood at 23.8%, an expansion of 1.43% sequentially and 2.79% year-on-year. “Increased price realisation - onsite and offsore, increased utlization and forex realization have driven margins,” he said.

The BPO business reported a 7% sequential growth, while consulting grew at 16% and application development and maintenance grew at 5%. Verticals like energy & utilities grew at 11.5% sequentially, while telecom and media grew at 11%.

Wipro acquired 37 new clients during the period. Big deals included a multi-year one with a large pharma firm to provide turn-key infrastructure services across 38 countries; a large contract with an Australian brewery to provide IT infrastructure, business application, data centre and disaster recovery services support; the recent multi-year total outsourcing deal to provide world class IT infrastructure for Indira Gandhi International Airport in New Delhi. Source

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