This financial year, Wipro is expected to report the fastest annual revenue growth among India’s top five software services companies.
Wipro’s growth performance will be the first for the company in the last 30 years history of the Indian outsourcing industry, where the company competes with TCS, Infosys, Cognizant, and HCL Technologies.
An industry-leading 12.2 percent sequential revenue growth in the first quarter of the current fiscal year has set up Wipro, initiated by CEO Thierry Delaporte, firmly on course for the rest of the year.
However, Wipro has not declared a full-year forecast; instead, it has predicted sequential revenue growth of 5 to 7 percent in CC (constant currency) terms this quarter.
Assuming Wipro does not report any sequential revenue growth in the third and the fourth quarters, the company still ends FY22 with a revenue of 10.01 billion USD, a 23.1 percent growth. Last year, the company reported revenue at 8.13 billion USD.
In a post-earnings call, Delaporte said, “We have guided for revenue growth of 5 to 7 percent. Even at the lower side of this guidance, the company will achieve 10 billion USD annual revenue.”
Double digital organic growth is essential as Wipro has struggled to keep pace with its peers in the last decade.
Wipro shares have rallied in the past 14 months, which also reflects its improved financial performance. The company’s shares have given returns of over 108 percent in the last year. Additionally, Delaporte’s appointment has also boosted the shares prices of Wipro.
An aggressive acquisition strategy, along with setting in place a simplified organization structure, assembling a new team, including hiring senior executives, and a slew of other initiatives such as empowering client account partners, has helped Delaporte achieve Wipro’s growth well.
But, both analysts and company executives state that it will be early to say if Wipro has indeed turned the corner.