Wipro met market expectations with its quarterly results on Friday. Yet, India's third-largest software services firm raised eyebrows with a rather flat revenue outlook for April-June quarter. Suresh Senapaty, executive director and CFO, Wipro, tells HT why this should not be a concern. Excerpts:
Let's first talk about your revenue outlook for April-June quarter, which is flat. Is the company feeling the pinch due to worsening of the macro-economic scenario?
Generally the first quarter (April-June) of a fiscal is weak for us but this time the flat outlook in revenue growth is largely due to some delays in deal signings. So these deals, which we had expected to seal during January-March will now be signed off now and will be reflected on in our second quarter revenues. Hence we gave a flat revenue outlook for the first quarter.
Do you see any improvement in macro-economic environment?
Well if we talk about the US then it is (the economic environment) definitely better when compared with the scenario two quarters back. So while some businesses offer encouraging signs others are relatively weaker. For instance in the US, though IT spends in insurance is strong, investment banking and capital banking continue to be relatively weak. Our deal pipeline continues to be strong.
Is the Cyprus issue creating an impact on Europe business?
Well the issue is reflecting itself in the currency but it has not yet touched decision-making point for businesses in Europe. But yes, the cross currency fluctuations had had an impact on our income.