Wipro, India's third largest software exporter, reported a rise of 41.38% on consolidated basis to Rs 22.39 billion for the quarter ended Mar. 31, 2014. On sequential basis, Wipro reported a rise of 10.51% in quarterly profit.
Consolidated revenues for the quarter ended Mar. 31, 2014 went up by 21.75% y-o-y to Rs 117.03 billion.
IT services revenues in Rupee terms was Rs 106.2 billion (USD 1.8 billion), an increase of 24% YoY.
Commenting on the results, Dipen Shah, head of private client group research, Kotak Securities said, ''Wipro's margins were better than estimates though revenues came in slightly lower than estimates. The 1QFY15 guidance was slightly disappointing and reflects the challenges faced by a few verticals as well as the seasonality with the Indian business. The company's revenue growth trajectory has improved in the past few quarters. Consistent high revenue growth will lead to a re-rating of the stock.''
Meanwhile, Ankita Somani, research analyst, IT, Angel Broking, said, ''Wipro may face some bit of selling pressure post results in the near term. Wipro has recovered strongly from lower levels after posting better than expected results in the last two quarters but we believe it will still lag other larger peers such as TCS and HCL Tech in terms of revenue growth rates in FY2015. We currently maintain our Neutral view on the stock and wait for management commentary on discretionary spending and large deal wins.''
Manik Taneja, research analyst, Emkay Global Financial Services, said, ''Improvement in client metrics with decent growth in both US and Europe. Amongst verticals, BFSI, Telecom and Energy and Utilities grow higher than company average. June'14 quarter revenue guidance a tad light on expectations at 0-2% QoQ growth driven by seasonal weakness and drag from Retail segment. FY15/16E EPS remain unchanged at Rs 38/41 as higher margin assumptions negate a slight cut in USD revenue estimates. Stock could reverse recent out performance near term , however positive thesis on Wipro remains unchanged.''
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