Wipro has managed to meet street expectations for Q1 2013, with net profit of Rs 1580 crores, and revenues totalling Rs 10,653 crores. Markets are unlikely to be too disappointed with the results, except for the muted revenue guidance for Q2.
The company has added 37 new customers during the quarter. The Non-GAAP constant currency IT Services Revenue in dollar terms was $1,540 million, within the company's guidance range of $1,520 million to $1,550 million.
Azim Premji, Chairman of Wipro, commenting on the results said, "In today's complex business environment, global corporations are increasingly investing in transformational technology initiatives to improve competitiveness. We see this shift as an opportunity for us to lead this change and help customers differentiate in this fast evolving market."
However, what is likely to disappoint the street is the muted revenue guidance of -1.3% to 0.7%. The company expects revenues from its IT Services business to be in the range of $1,520 million to $1,550 million for Q2.
Earlier this month India's second largest software developer, Infosys had also projected muted revenue guidance for Q2. In terms of new orders, Wipro has won a large multi-year contract from Royal Philips Electronics and also from a leading Retail Bank and Insurance Provider in the UK, apart from other contracts. Wipro has also won a multi-year engagement with Al Hammadi Hospital in the Kingdom of Saudi Arabia for implementing a highly contemporary technology platform for their upcoming 350 bed hospital in Riyadh.
The transformational program will enable the upcoming hospital to provide intuitive and consistent user experience across multiple channels. Besides this program, Al Hammadi Hospital has also chosen Wipro as their strategic partner for their core Hospital Information System Application. Wipro won a multi-year contract to implement MPLS Network for Powergrid, India's Central Transmission utility (CTU), which is responsible for the complete inter-State power transmission system.