Wipro raises Q1 revenue growth guidance to 8-10% post Capco acquisition


Bengaluru: Post completion of Capco acquisition on 29 April, Wipro Ltd has raised its flagship IT services revenue growth guidance for the June quarter to 8-10% sequentially in the range of $2.32 billion-$2.36 billion. This excludes revenue from the acquisition of Ampion, an Australia-based cyber security and engineering services firm it agreed to buy for $117 million.

During the March quarter earnings, Wipro said it expects revenue from its IT services business for the quarter to grow 2-4% in the range of $2.19 billion to $2.23 billion, backed by a strong demand environment and robust pipeline of digital deals.

In March, Wipro signed an agreement to acquire British management and technology consultancy Capco for $1.45 billion to strengthen its position in the banking, financial services, and insurance (BFSI) sector, which contributes about 30% to the company’s total revenues.

London-headquartered Capco provides digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific. As part of the acquisition, Wipro will also get access to 30 marquee BFSI clients and over 5,000 consultants of Capco.

Post completion of the acquisition, Wipro plans to operate Capco as a separate entity, which is seen as a positive sign by brokerage firms. “Keeping Capco as a separate entity should address branding, go-to-market, and culture conflict issues to an extent,” ICICI Securities said.

News Source:- Moneycontrol

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