Thursday, July 24, 2014

#Wipro Q1 results and expert views on Wipro results

Views on Wipro results from Dipen Shah, Head- Private Client Group Research, Kotak Securities:

“Wipro’s results were marginally lower than estimates. However, the guidance for 2Q is encouraging.

Wipro has won a relatively higher number of large deals recently, especially in IMS space, which should lead to better revenue growth in the future quarters. We maintain a positive view on Wipro with a long term perspective.”

In a mandatory filing to the Bombay Stock Exchange (BSE) Thursday, Wipro has said its total revenue for the quarter under review increased 14 percent YoY to Rs.11,136 crore.
Under the International Financial Reporting Standard (IFRS), net income rose 30 percent YoY to $351 million and gross revenue to $1.9 billion, up 14 percent YoY.

Highlights of the Results for the Quarter ended June 30, 2014:

Total Revenues were Rupee 111.4 billion ($1.9 billion1), an increase of 14% YoY.

Net Income was Rupee 21.0 billion ($351 million1), an increase of 30% YoY.

IT Services Revenue was $1,740.2 million, a sequential increase of 1.2% and YoY increase of 9.6%.

IT Services Operating Margins was 22.8%.

Azim Premji, Chairman of Wipro, said, "We see a significant rise in business confidence in developed markets as well as India. The new government at the Centre has brought about hope and confidence in the minds of all stakeholders through reform pronouncements with fiscal prudence. We expect greater economic activity including investments in India."

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, "We continue to win large deals particularly in the application and infrastructure space. We recently announced our largest ever total outsourcing deal. These wins demonstrate confidence of clients in our transformational capabilities and re-affirm our faith in our client engagement strategy."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – "We continue to drive operational efficiency and invest in our strategy. Operating margins for the quarter was on expected lines, impacted largely due to wage hikes."

Outlook for the Quarter ending September 30, 2014 We expect Revenues from our IT Services business to be in the range of $1,770 million to $1,810 million*.