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If trade tariff and Brexit eases, growth will be faster, says Wipro's Abidali Neemuchwala

Updated : July 17, 2019 11:07 PM IST

Wipro, India's fourth-largest software company, on Wednesday said that if macro environment with respect to trade tariff and Brexit eases, growth will be faster.

In an interview to CNBC-TV18, Abidali Neemuchwala, chief executive officer, said, "From a macro perspective, we did see a little bit of slowdown especially in a couple of our growth areas. One of them was the banking and financial services where we saw a little bit of stress in capital markets as well as in the European banking space."

"In the consumer business, a couple of projects that had got over in Q4 and we were expecting newer projects to start in Q1 have taken a little longer to get started. Although both of these verticals have grown at about 11 percent year-on-year for BFSI and a little under 8 percent year-on-year on the consumer," Neemuchwala said.

"We have a very strong pipeline and as some of the deferrals start to get executed within the quarter, I hope that Q2 will gain momentum and then that momentum will carry through the year," he added.

Bhanumurthy BM, chief operating officer, said, "If you look at our BFSI (banks, financial services, and insurance) segment, year-on-year has done very well and it is in double-digit growth. The consumer segment and communications have done well. On the health side, we do see a certain amount of softness in the market because of the macro uncertainties that we see."

Wipro posted a 12.5 percent rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter, and guided for up to 2 per cent sequential revenue growth for the July-September period.

Its revenue increased by about 5.3 percent to Rs 14,716.1 crore during the reported quarter, compared to Rs 13,977.7 crore in the year-ago period. The Bengaluru-based company's consolidated income rose by about 5 percent to Rs 15,566.6 crore during the reported quarter.

Wipro's mainstay IT services revenue was $2,038.8 million, up 4.3 percent year-on-year. The company, which competes with rivals like Tata Consultancy Services and Infosys, had earlier said it's IT services revenues in June 2019 quarter are likely to be in the range of $2,046 million to $2,087 million, excluding the impact of the divestment of its Workday and Cornerstone On Demand business.
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