Indian IT services provider Wipro has released first quarter sales figures that fall significantly short of the performance of local rivals such as TCS and Infosys.

Global IT services and product sales at the company rose 23 per cent to $732m (£357m), well below TCS sales of £635m and Infosys’ sales of £457m.

But Wipro chairman Azim Premji says the results are satisfying because of volatile conditions such as the appreciating rupee.

‘Our IT services business continued to witness broad-based growth across industries, geographies and service lines,’ he said.

‘We saw strong growth in finance, telecoms, manufacturing, media and transportation.’

Premji says business process outsourcing has grown by more than 40 per cent and the company expects sales for the next quarter to reach £380m.

But the results still trail those of its competitors, which are experiencing similar conditions, says Ovum analyst Samad Masood.

‘Wipro is struggling against the depreciating rupee, which decreases revenue growth, and growing staff costs, which put pressure on margins,’ he said.

‘But so are TCS and Infosys, both of which managed to outperform expectations this quarter.

‘Wipro’s distinct market strategy, which involves acquiring multiple companies in the US and Europe, and a much larger focus on research and development services, will also have had a part to play in this quarter's performance.’

But Masood says Wipro believes these are short term issues, as the supplier is forecasting 32 per cent sales growth for the next quarter.

Wipro will continue to look to Europe for increased sales growth, with revenue rising 40 per cent for the quarter to $257m (£125m).