Below par results this year and lower than average predictions for next year from Infosys could be a one-off as TCS and Wipro re-injected confidence in the Indian IT services market with strong sales.
Infosys last week reported a 5.8% increase in sales for its latest financial year and predicted between 6% and 10% next year, which is below the expected average for Nasscom companies.
But Wipro reported sales growth of 16% for its latest year and TCS said its sales will be above the Nasscom average. TCS, which has over 250,000 workers worldwide also said it will recruit 45,000 IT professionals over the next year.
Wipro’s total sales for the last 12 months which ended in March 2013 were $7.95bn, which was 16% higher than the previous 12 months. Wipro’s profits increased 19% to $1.22bn in the year.
The IT services operation of Wipro has now split from the company’s other divisions.
“We have completed the demerger of the ‘Diversified Business’, effective March 31, 2013 to make Wipro Limited a pure play IT company," said Azim Premji, chairman of Wipro, commenting on the results. "We are confident that being a technology-focused company will provide a fresh momentum for growth.”