"Wipro’s results and 3Q guidance were almost in line with our estimates, though margins in 2Q did better than our estimates. The focus on non-linear initiatives has yielded results for the company in 2Q with average realisations rising by >1ppt QoQ in CC terms. We believe that, most IT companies will focus more and more on non-linear initiatives to restrict impact on margins and that will have a bearing on margins going forward. Wipro has given a slightly optimistic outlook as far as decision making by client is concerned. We expect growth rates to trend higher over the next few quarters as the developed economies stabilize or atleast, there are no major catastrophic events like defaults / bankruptcies."
