Wipro To Provide IT Services To Corning Incorporated

Wipro, the third largest Indian IT company, today announced that it has been selected by Corning Incorporated, a world leader in specialty glass and ceramics, to provide a multi-year information technology infrastructure program.

The deal will boost the revenue share of manufacturing and hi-tech segment of Wipro which accounts for18.6 % (USD 1.18 billion) of the company's total revenues. Manufacturing and hi-tech segment recorded marginal growth of 1.3% year-on-year during FY2013-14.

Speaking about the deal Mr N. S. Bala, Chief Executive, Manufacturing & Hi-Tech Industry SBU, Wipro, said,“We are delighted to be chosen as the strategic IT provider for Corning Incorporated and to enable it to deliver advanced IT capabilities. The relationship between Corning and Wipro is anchored by the synergy of our core corporate values and we look forward to fostering an environment to support Corning in achieving its growth objectives"

Yesterday (19 May, 2014), the company has won an over USD 400 million (Rs 2,400 crore) deal from Takeda Pharma under which the former will develop and support IT requirements of the largest Japanese pharmaceutical company. The deal would contribute to Wipro's Healthcare and Life Sciences unit which accounts for 10.3% of the company's revenues from IT services.

After the announcement of the said deal, the stock of company went up 3.1% to Rs 496 per share over its previous closing price of Rs. 481.5. Currently, the stock is trading at 14.5x of its trailing 12-months earning.