'TCS beats expectations, Wipro disappoints'

Rajiv Mehta, AVP Research – India Private Clients, IIFL spoke to Puneet Wadhwa on the TCS, Wipro earnings and the outlook for the IT sector.

Are the results of TCS and Wipro in line with your expectations?

The second quarter results of TCS are good and are above market expectations, while Wipro has been below par.

We expected a sequential growth (in dollar terms) of around 7% in revenues for TCS and the company has actually delivered 11%. On the other hand, Wipro reported a sequential growth of 4.8% as against an expectation of 6.5%.

What about the guidance that these companies have put out?

Well, the commentary from TCS post results has been quite encouraging. The robust volume growth is expected to continue going ahead. As regards Wipro, the guidance has more or less been in line, as the third quarter of a fiscal is a seasonally weak quarter.

How do you compare the results of Infosys, TCS and Wipro? Any striking feature you noticed?

The most striking feature is the disparity in numbers. Since the past three quarters, TCS has consistently shown a good performance, and has outperformed Infosys Technologies in the recently concluded quarter. Wipro, on the other hand, has been lagging behind, whereas Infosys has been more or less meeting expectations.

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