Wipro: A Flat Line Uninspiring Growth

The country's third largest IT Company, Wipro announced a flat set of quarterly results for the quarter ended December 2013. Wipro’s revenues stood at Rs 11327 crore in the quarter under review, against Rs 10991 crore in Q2FY14, up by just 3.06 per cent. On a YoY basis its revenues were up 18%. Total expenses for the quarter went up by 2.71 per cent and 15.41 per cent on a sequential and yearly basis respectively. It posted a net profit of Rs 2015 crore for Q3FY14, against Rs 1932 crore it had earned in Q2FY14, showing a marginal 4.28 per cent growth on a sequential basis. On a YoY basis its profit was up 17%.

Segment-wise, except Healthcare, all other segments grew between 0.5 to 4.6% sequentially during the said quarter. Its healthcare segment grew by 7.27 per cent sequentially in Q3FY14. The BFSI segment continued to be dominant in Wipro's contributing to 26% of its overall revenues. The second largest contribution to revenues of 19% came from the Manufacturing segment.

Geographically, United States continued to dominate its revenue graph with a 46% coming in from that region. The European markets contributed to 28% of its revenue coming in a close second in its revenue generation. Interestingly, during Q3FY14, revenues from the European market showed a 4.42% growth sequentially and increased its share in overall revenue marginally from 27.48 per cent in Q2FY14.

The stock closed 3.15 per cent down after it announced its results following the flat performance of the company during the quarter under review.