Azim Premji-led Wipro on Monday showed a flat 1% year-on-year quarterly profit for the July-September quarter, lagging industry leaders Tata Consultancy Services (TCS) and Infosys. Wipro’s second quarter profit was Rs 1,301 crore against Rs 1,285 crore in the corresponding period last year.
Wipro has been lagging for the last few quarters with its focus on servicing clients in the telecommunications, technology and media sectors, which haven’t really been on the upswing, said brokerage firm Angel Broking.
Market leaders such as Infosys and TCS get a big share of their profits from the BFSI (banking, finance, securities and insurance) sector, where Wipro did not have a presence.
As a part of its restructuring after T Kurien took over as CEO, Wipro rejigged its verticals and also started focussing on areas likes BFSI, energy and utilities. “They reported a 6.9% revenue growth this quarter in BFSI,” an analyst at Angel Broking said.
“Macroeconomic sentiments continue to remain uncertain. We have seen growth momentum build up in our IT business with healthy volume growth. Our focused investment strategy will get the business to a higher growth trajectory,” said Azim Premji, chairman, Wipro.
Wipro showed a big year-on-year jump in revenue of 18% at Rs 9,094 crore for the quarter.