Infosys, Wipro post stellar growth

BENGALURU: Robust demand from enterprise clients for cloud, data analytics and cyber security has resulted in optimism in the IT sector with major players like Infosys and Wipro upping margins and revenue guidance. Infosys has revised its revenue growth guidance for FY21 in the range of 4.5-5 per cent in constant currency terms and operating margin at 24-24.5 per cent, while Wipro has forecast a sequential 
hike in revenue in the range of 1.5-3.5 per cent for Q4FY21.

Both the firms have reported some of the largest deal wins in their history during October-December quarter and cut in discretionary spendings which led to expansion in the operating margins. While Infosys outperformed its peers with a huge $7.13 billion large deal wins, rival Wipro said that it is on its path to growth trajectory. Infosys CEO  Salil Parekh has attributed the deal wins across verticals like manufacturing, financial services and communication to the IT services provider’s investments in digital capabilities before Covid-19.

The Bengaluru-headquartered firm, he said, has been able to achieve its target of clocking more than 50 per cent revenues from digital, which will continue to increase in the upcoming quarters. “With intense focus on client needs and comprehensive foundation built on differentiated capabilities, I remain confident about the future,” he added. Infosys’ Q3 net profit grew by 16.6 per cent to Rs 5,197 crore over the previous year. The sequential revenue hike was 8-year high at 5.3 per cent at Rs 25,927 crore. 

Meanwhile, Wipro has been focusing on linear structure to drive growth. The management rejig at Wipro has paid off with the company announcing major deal clinches in Q3 FY21, which resulted in the net profit rising by 21 per cent to Rs 2,968 crore whereas the gross revenues for the quarter grew by 3.7 per cent sequentially at Rs 15,670 crore. “We are aware that we have grown less than others, but we have restored growth in Q2 and are accelerating in next quarters. We’ll continue to make investments to grow faster,” Wipro CEO Thierry Delaporte said.