IT Staffing Report: Oct. 24, 2013


Revenue up at Wipro, Tata, Infosys and iGate

Large information technology service providers reporting increases in revenue include Wipro Ltd. (NYSE: WIT), Tata Consultancy Services, Infosys Ltd. (NYSE: INFY), iGate Corp. (NASD: IGTE).

Wipro reported revenue from continuing operations rose 19 percent year-over-year to 109.92 billion Indian rupees (US$1.76 billion) in its second quarter ended Sept. 30.

Net income from continuing operations at Wipro rose 28 percent to 19.32 billion Indian rupees (US$309 million).

“There are positive indicators on the global economy,” said Wipro Chairman Azim Premji. “Client confidence is on the uptick and wee it reflected in our results.”

 IT services revenue rose 20 percent to 100.68 billion rupees (US$1.61 million).

Tata Consultancy Services reported revenue rose 17 percent in U.S. dollars to US$3.34 billion in its fiscal second quarter ended Sept. 30. The company cited growth across industries and geographies with industry growth led by life science, media, energy and utilities, and the banking and financial services industry. Europe and North America led growth among geographies.

Tata’s Operating profit rose 31.9 percent year-over-year in the second quarter. Net income rose 16.4 percent to $748 million.

The company reported it added a net 7,664 employees globally in the second quarter.

Infosys Ltd. reported revenue rose 15.0 percent year over year to $2.07 billion in its fiscal second quarter ended Sept. 30. However, gross margin fell to 21.8 percent from 26.3 percent in the same quarter last year.

Infosys net profit was $383 million, down 11.1 percent year over year from the same period last year. CEO and Managing Director S.D. Shibulal said in a conference call with analysts that Infosys set aside a reserve of $35 million based on the status of ongoing discussions with the U.S. Attorney's office and other government departments regarding a resolution of the government’s investigation into the company’s compliance with I-9 requirements and past B-1 usage.

IGate reported revenue rose 8.2 percent to $293.4 million in its third quarter ended Sept. 30,  from $271.1 million in the third quarter of last year. Gross margin at the Fremont, Calif.-based information technology services firm increased to 41.4 percent from 39.8 percent in third quarter 2012.

IGate’s net income for the quarter rose 12.7 percent to $31.9 million.

“Overall it has been a very good quarter for iGate,” said CFO Sujit Sircar. “Our operational efficiencies coupled with a positive gain out of the Indian Rupee depreciating against the U.S. Dollar resulted in an expansion of our margins and earnings.”

iGate last month named Ashok Vemuri as president and CEO.


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