Wipro’s numbers broadly as per expectation. Total revenues for the quarter came in Rs 70 Bn while revenues for IT-Services came in at Rs 52.6 Bn.
Wipro, like TCS, sustained its continued performance on margins (in IT-Services), improving margins sequentially by 0.6% to 24.4%, which we believe came in from better offshore leverage (offshore revenues moved up 90bps Q/Q to 50.6% of revenues and offshore volumes went up 4.8% Q/Q). That said, this quarter did not reflect the full impact of wage hikes as revised wages were effective Feb.
Except for CMSP (communication & media service provider) segment, which declined 7% Q/Q, most other major verticals grew at least 4% Q/Q (BFSI – 4.7%, manufacturing 4.3%, Energy 4.6%, technology 6% and telecom 7.5%). Wipro seems to have seen some revival in its traditional tech/telecom business in this quarter. BPO grew 6.4% Q-o-Q, Infra Management grew 5%, testing 5% Q/Q. Performance in ADM was muted at 1.6% growth (in line with that seen at TCS and Infosys) as well.
Wipro’s FY 11 EPS guidance is Rs 35 / share.