Wipro declares unexpected quarterly results

Wipro declares unexpected quarterly results

Wipro was expected to do well in the third quarters but its failure to reach the expectations put Prabhudas Lilladher at worry.

He said that in the anticipation of strong results the stock outperformed Sensex by approximately 11% since November-11 and now there is a need to revise the ratings.

In terms of revenue Wipro grew by 0.6% whereas IT services grew by 5.6%.

All the IT companies including Wipro have to follow new low pricing norms. Some of the increase in the pricing is seen due to business exchange and because of the cross-currency movement.

Last 2-3 quarters does not prove fortunate for Wipro in terms of volumes. Wipro has higher exposure to high tech and telecom sectors and telecom sectors have lower growth rate as compared to other companies.

And hence Wipro is lagging behind in terms of volume growth. HCL also manages to won 17 multi-year transformational deals most of which were from existing customers, in the third quarter, including fresh ones like Bank of Ireland and a commercial airline in North America.

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