Premji sees strong growth for Wipro in 2008

Friday, 20 April 2007, 07:00 Hrs
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Bangalore: Wipro czar Azim H. Premji Friday said his IT bellwether would continue the growth momentum of the last fiscal (FY 2007) in 2007-08 too, despite concerns over slowing down of global economy and volatility in the forex market leading to a steady rupee appreciation.

"Nothing alarming in the US, European or Japanese growth rates to worry about. Economy in Europe and continental Europe is showing strong signs of growth. Though the Indian economy is equally strong, an element of doubt prevails on the high interest rate," Premji told reporters at a news conference on the company's robust financial results for the last fiscal.

On the volatility in the forex market, Premji said the issue was not about the rupee strengthening, but the dollar weakening against Rupee and other currencies. "We will, however continue to expand our operations and invest in people to brace up for such eventualities in future," Premji asserted.

Touching a record nine-year high, the rupee has been hardening over the last two quarters to gain by 350 basis points (3.5 percent) against the greenback. As a result, export-driven IT firms such as Wipro, Infosys and TCS have been taking a beating despite hedging for forward cover.

In line with its revenue guidance for its global IT business, the company has posted net profit of 29.4 billion and gross revenue of 150 billion ($3.47 billion) during the fiscal under review (FY 2007), with its flagship division (global IT services) crossing the $3-billion mark and $1 billion in the fourth quarter (January-March) for FY 2007.

"In view of the challenges and opportunities unfolding, we have drawn an aggressive plan and a focused set of actions to drive profitable growth. We believe we have the right ingredients in place to keep winning," Premji asserted.

The company will continue to invest in non-IT businesses in the form of acquisitions and in product as well as geographic expansion in view of the high growth rates delivered in FY 2007 and which were double the industry rates.

Strategic acquisitions, expanded sales force, domain competency and solution focus have helped the company in delivering good profit growth, winning a number of large deals and expanding its engagements with its customers worldwide.

"The financial performance is a testimony to the fact that investing in the right opportunities will yield good results. We invested early in our differentiated service lines, viz., technology infrastructure services and enterprise application services.

"The BPO business, which went through a planned transformation, has also delivered strong growth during the second half (October-March) of the fiscal and has been consistent in improving profitability," Wipro chief financial officer Suresh Senapthy said.
Source: IANS
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