Indian software consulting firm Wipro
Fiscal fourth-quarter revenues surged 42% to $1 billion. Wipro added 44 new customers, including 10 contracts of $50 million or more apiece. The company's strongest demand came from retail, manufacturing, and transportation-industry segments.
Wipro faces an uphill fight against wage inflation, a strong rupee, and employee turnover. It's no easy task, but the company has a history of improving efficiency. Wipro has also increased prices for its contracts, and it's starting to generate profits from the acquisitions it's made over the past few years. Thanks to all of these factors, Wipro increased Q4 net income by 44%, to $200 million.
"Over the past few years, Wipro has acquired a variety of companies, and the investments are beginning to pay off," said Michael Guilbault, a senior analyst at Technology Business Research. "The company has learned from the extensive review of past acquisitions, [and] taken best practices from acquisition-heavy partners like Cisco Systems
On Wipro's conference call, the company's message resembled those from competitors Satyam Computer Services
We're likely to see Wipro's dealmaking continue -- in fact, the firm may even target U.S. operators. That's a unique approach among the Indian giants, and it should help fuel Wipro's growth over the long haul.
We're wired for further Foolishness:
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