BRASÍLIA: Wipro’s third-quarter IT services revenue rose 0.6% sequentially, meeting the lower end of its guidance and the third-largest Indian software services company said it had bought Brazil-based IT services provider InfoSERVER for $8.7 million.
“Two decade old InfoSERVER, which counts some of the biggest Brazilian banks as its clients, will help Wipro in expanding its presence in the country’s highly traditional and competitive banking, financial services & insurance besides adding invaluable domain and process knowledge of the sector,” Wipro said in a statement.
The Indian IT industry has been trying to reduce its dependence on its biggest markets- US and UK, as protectionism and macroeconomic uncertainties like Brexit take a toll on their business in these geographies. Wipro said it has a significant presence in Latin America and the acquisition helps it expand further into the market. Wipro forecast 1-2% growth in the fourth quarter.
For the quarter ending March 31, Wipro said it expects IT services revenue of $1.92-1.94 billion, implying growth of 1-2%.
For the quarter ended December 31, Wipro reported IT services revenue of $1.90 billion, up 0.6% in constant currency terms. It had expected revenue of between $1.92-$1.95 billion implying flat to 2% sequential growth.
Profit at the IT services division stood at $355 million. IT margins rose to 18.3% from 17.8% in the second quarter.
