Wipro on Friday revised
upwards its IT services revenue outlook to 8-10 per cent sequential growth in
the June 2021 quarter, following the completion of its $1.45 billion buyout of
Capco.
While
announcing its March quarter results earlier this month, Wipro had said it
expects to log a sequential growth of 2-4 per cent in its IT services revenues
in the June 2021 quarter without including revenue from Capco and Ampion
acquisitions.
In March, Wipro had
announced the acquisition of London-headquartered Capco in a $1.45 billion
(over Rs 10,500 crore) deal - its largest ever till date.
In a regulatory filing
on Friday, Wipro said the acquisition of Capco was completed on April 29, 2021.
Consequent to
completion of the acquisition, the revenue guidance for the current quarter
(April-June 2021) is revised, it added.
"We expect revenue
from our IT services business to be in the range of $2,324 million to $2,367
million. This translates to a sequential growth of 8 per cent to 10 per
cent," it said.
The updated forecast does
not include revenue from Wipro's recently announced acquisition of Ampion, the
filing noted.
Wipro had announced the
acquisition of Ampion, an Australia-based provider of cybersecurity, DevOps and
engineering services, for $117 million earlier this month. This deal is
expected to close this quarter.
Wipro had logged $2,152.4
million in IT services revenue in the March 2021 quarter, a sequential growth
of 3.9 per cent.
The Bengaluru-based company
gets a bulk of its topline from IT services.
Its revenue from operations
rose by 3.4 per cent year-on-year to Rs 16,245.4 crore in the March 2021
quarter.
With the Capco acquisition,
Wipro seeks to become a "bolder and ambitious" company as well as
rake in higher revenues from banking and financial services space.
The transaction, it had
previously stated, will provide it access to 30 new large banking and financial
clients and strengthen its position in the Banking, Financial Services and
Insurance (BFSI) sector.
Wipro chairman Rishad
Premji had said Capco will bring over $700 million in revenue, and over 5,000
consulting and domain specialists based across the globe.
Founded in
1998, Capco works with more than 100 clients and has many long-standing
relationships with the world's leading financial institutions. It has over
5,000 consultants based in more than 30 global locations across 16 countries.
The company's consolidated revenues for the year ended December 2020 was $720 million.