Wipro's India business declines 3% due to slowdown in domestic market

BANGALORE: India's third-largest information technology company, Wipro said revenues from its India and Middle-East business fell 3.1% in the second quarter, due to a slowdown in the domestic market and delays in government projects.

Wipro Infotech, the business arm that handles Wipro's India and Middle-East business, contributed about 8.6% to revenues in the second quarter, compared with 9.3% a year ago.

The fall in revenues is also because of the instability in Middle East in past few months, leading to delayed decisions by clients.

In India, Wipro Infotech has large clients like HDFC Bank and Aircel. It also handles the automation for India's excise and tax departments as well as a project for ESIC (Employee State Insurance Corporation) that is worth Rs 1,800 crore.

Many IT companies like TCS and HCL Infosystems have complained this year of delays in decision-making and payments by Central and state governments.