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Rediff News  All News  » Business » US market much better now, says Azim Premji

US market much better now, says Azim Premji

July 26, 2013 08:41 IST

Wipro chairman Azim Premji on Thursday said the US market seemed much better than what it was three to four months ago, reinforcing the positive outlook reported by information technology (IT) companies such as TCS and Infosys in their first quarter results.

“US markets seem to be stabilised and consumer sentiment is picking up. Equity markets are much better now in the US. Europe, however, continues to see flat growth,” Premji said, addressing the 67th annual general meeting of the company.

He, however, said the Indian market continued to be a concern. “Demand for IT services and goods has slowed. The Indian market is not in good shape. Indecision continues and cash flows in major projects are choked,” he said. For the quarter ended June, Wipro had estimated revenue growth of -0.6 to 1.6 per cent.

Still a laggard

“The company is expected to lag and continue its lower trajectory compared to peers; revenue growth is likely to be flat quarter-on-quarter due to weakness in the India business,” said an analyst.

“Wipro continues to be a laggard and is likely to post flat revenues on a sequential basis. The earnings before interest, tax, depreciation and amortisation margin is estimated to dip marginally — by 30 basis points quarter-on-quarter — due to a month’s impact of wage hikes,” an analyst at Edelweiss Securities said in a quarterly results preview.

Investors were likely to keep a tab on the management’s commentary, in terms of the demand outlook for the second quarter and an update on large deal wins and client budget, the preview added.

BS Reporters in Pune/Bangalore