Wipro Ltd on Thursday projected a revenue of $777 million (Rs 31.5 billion) from its flagship global IT services and products division for the second quarter (Q2) of the fiscal year 2007-08 under the Indian generally accepted accounting principles (GAAP) and US GAAP.
In a notification to the stock exchanges here on Thursday, India's third largest IT bellwether said the guidance of $777 million was based on the performance of the IT division in Q1 (April-June) of this fiscal year with revenue at $726 million (Rs 29.5 million), which was ahead of the projected figure of $711 million.
"The performance of the global IT division in the first quarter (Q1) is satisfying considering the strong headwinds faced by us in the form of an appreciating rupee.
The division continued to witness broad based growth across verticals, geographies and service lines. Looking ahead, we expect revenue from our global IT services business to be around $777 million," Wipro chairman Azim H Premji said in a statement.
Wipro chief financial officer Suresh Senapaty said that on the margin front, operational improvements helped the company in partially offsetting the pressure on profitability arising out of rupee appreciation.
"Sequentially, the operating margin, however, dropped by 250 basis points from the previous quarter (January-March) of the last fiscal (FY 2007)," Senapaty admitted.
Unlike Infosys and other IT bellwethers, Wipro does not give guidance for the entire fiscal for its IT division or other divisions.