Wipro Is Looking Good

By Eliza on July 24th, 2010

Wipro management said that the company saw volume growth of5% . There were better realizations from foreign exchange cover. Net expansion in the margins were of 30 bps. Cross guidance given by the company is in constant currency.

Suresh Senapathy, CFO of Wipro said that Wipro has delivered ahead of the top end of its guidance in constant currency with a sequential growth of 5% and saw yet another quarter of margin expansion with a 30 bps increase despite the headwinds of wage increase and a decline in price realization.

The management gave strong guidance of 4-6 % for Q2FY11. The guidance represents demand growth. Company’s 5 growth is over & above strong performance in previous quarters. Offshore realizations were flat in constant currency while on site realizations were down due to start of new on site projects. It said that the Wipro has managed selective price hikes. Pricing environment remains stable and the pricing is up in select cases.

Management said that the growth is board-based; Financial Services, Media all performed well. The company has managed to pass on the cost increases to some clients. Volume growth was strongest in the company’s history. Project starts led to front loaded investments. Net addition over the last 3 quarters has been robust. Wipro added 15,000 employees in the last 3 quarters. The company has taken steps to control attrition, has issued R.S.Us, and has given promotions.