India IT companies show strong financials

Source: Technology Digital

Date :6/5/2007 2:48:41 PM

India’s top three IT companies have seen significant growth over the past year as Europe, North America and other global locales continue to outsource jobs to lower cost regions.

Wipro Limited, of Bangalore, India, reported an increase of its net income of 44 percent over the same period last year. The company’s fourth quarter closed on March 31, 2007.

“All our business segments contributed to the strong growth in revenues and profits during FY 2006/2007,” says Azim Premji, chairman of Wipro. “During the year, we completed strategic acquisitions, expanded local sales foot-print, built deeper domain skills and sharpened our account management focus.”

Premji adds, “Looking ahead, for the quarter ending June 2007, we expect our revenue from our global IT services business to be approximately $711 million.”

During the year the company filed 13 patents and more than 15 invention disclosures on behalf of its clients in the area of R&D services.

Tata Consulting Services, of Mumbai, India, filed equally as strong financial results for its fourth quarter, which also ended March 31, 2007.

According to a press release from the company, it had revenues of $4.3 billion for the year equaling an increase of approximately 44 percent.

“TCS’ robust business model using our full-services play and global network delivery model has given us the pole position to capitalize from the strong demand environment that exists globally,” says S. Ramadorai, CEO and MD of Tata.

S. Mahalingham, CFO of Tata, adds, “To achieve over $4 billion in revenues in FY07 and over a billion dollars in operating income, we have exercised several levers in terms of pricing, off-shore leverage and cost controls to strengthen profit margins despite a fluctuating Rupee.”

Infosys Technologies ended its fiscal year on March 31, 2007 as well, and posted revenues of $3.1 billion equaling a 44 percent increase over the year before.

The company sites a strong international market for its products and services and the addition of 34 new clients during the final quarter of the year.

“Our revenues grew by around $1 billion this year,” says Nandan M. Nilekani, CEO and managing director of Infosys. “The global IT services industry continues to show strong growth with exciting opportunities and Infosys is well positioned to take advantage of this.”