Wipro Ltd announced its Consolidated Q1 FY2014 results on 26 July 2014. A glimpse of the same is as follows:
While the company’s top line increased 1.2% sequentially to `9,733.2 Crores, its bottom line grew 3.0% q-o-q to `1,631.7 Crores in Q1 FY2014. Growth in the company’s revenues was mainly driven by expansion in IT Services business, which garnered the benefits from depreciation of ` versus $. However, in $ terms the segment’s sequential revenue growth remained at meager 0.2%. As expected, Wipro remained a laggard in the industry based on its Q1 FY2014 performance. Both of its larger peers INFY and TCS have reported significantly higher growth in top line during the quarter. The company also provided a muted $ revenue guidance of $1,620 to $1,650 Mn for Q2 FY2014, which remains a seasonally strong quarter for the IT firms. With this, we expect Wipro to remain a laggard in the upcoming quarters as well. As a result, we continue to prefer TCS and HCL Tech in the sector and suggest an avoid for Wipro at current juncture.
Regards,
Team Microsec Research
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