Wipro grew as much as 29.5%, to $ 2.6 billion. In constant currency, it was 28.8%. But part of that growth came from its acquisitions of UK-based Capco and Australia-based Ampion earlier this calendar year. Wipro’s stake in the NYSE was up almost 8%. Infosys was up 3.4%. Both companies outperformed TCS, which grew 16.8% in dollars and 15.5% in constant currency. But TCS, which announced results last week, is also a much larger company.
Indian IT service companies are benefiting from the growing demand for digital transformation from businesses globally. Organizations around the world see digitization as key to sustainability, a trend that the pandemic accelerated dramatically.
Infosys’ strong performance and future visibility around its order book encouraged the company to raise its revenue guidance for the second consecutive quarter. For the full year, he now expects revenue to grow between 16.5% and 17.5%. Three months ago, it had forecast 14-16%, and at the beginning of the financial year, it had targeted 12-14%, indicating that the business outlook has improved dramatically.
Salil Parekh, CEO of Infosys, said the company has increased its market share and demonstrated increasing trust with its customers.
CEO of Wipro Thierry Delaporte He said that the demand environment is very strong “and the portfolio, which is the highest in recent quarters, is a reflection of that.” The company has witnessed a smart change since Delaporte’s arrival in the middle of last year.
Sequentially, this quarter’s growth was 8.1%, exceeding its guidance of 5-7%. This has rarely been the case in recent years.
Based on the strong demand, Wipro expects to grow between 2% and 4% sequentially in the third quarter, which translates to 27-30% in constant currency compared to last year. Its annual revenue run rate surpassed the $ 10 billion mark.
Banking, Financial Services and Insurance (BFSI) was the best performing company for both companies. For Wipro, it grew 43% in constant currency, while the consumer business grew 38%.
Wipro’s operating margin fell 100 basis points year-on-year to 17.8%, mainly due to salary increases the company gave in September. It also spent more on hiring outside talent.
Infosys’s operating margin fell 1.6% year-on-year. Infosys CFO Nilanjan Roy said the margin was affected by increased compensation and higher outsourcing expense. “We are working on an aggressive cost optimization program to counter some of the headwinds. We are comfortable with our 22-24% margin guidance, ”he said.
Infosys signed large deals worth $ 2.1 billion in the last quarter. Parekh said it is a reflection of its strategic focus and the strength of its digital offerings. “Our digital business grew 42% and now represents 56% of our total revenues. Within the digital, the cloud is growing very fast, ”he said.