India's third largest software services exporter, Wirpo Ltd, on Wednesday reported a 1.2% year-on-year growth in profit for the April-June period in line with what the market was expecting. It benefited from clients in developed markets especially Europe increasing their reliance on outsourcing to cut costs and boost efficiency.
The consolidated net profit rose to Rs 1,334.9 crore during the quarter from R1318.6 crore a year ago, while its revenues grew by 18.3% to Rs 8,564 crore.
"We are seeing early signs of positive momentum after the re-organisation," said Azim Premji, chairman, Wipro Ltd.
For the current quarter, Wipro maintained a cautious outlook with a guidance of $1.4-1.5 billion (Rs 6,480-6,570 crore) as revenue from its IT services business, a 2.1-3.5% growth over the April-June quarter.
"The wage revision of around 10-12% last month and 3.1% higher effective tax rate had a sequantial impact on the results," said Suresh Senapaty, chief financial officer, Wipro.