Wipro gains after upbeat Q2 revenue guidance

Wipro rose 3.23% to Rs 395.15 at 9:16 IST on BSE after the company said it expects 1.99% to 3.88% growth in revenue from IT services business at between $1.62 billion to $1.65 billion in Q2 September 2013 over Q1 June 2013.

Meanwhile, the S&P BSE Sensex was down 25.44 points, or 0.13%, to 19,722.75.

On BSE, 26,000 shares were traded in the counter as against an average daily volume of 1.70 lakh shares in the past one quarter.

The stock hit a high of Rs 405 and a low of Rs 395 so far during the day. The stock had hit a 52-week high of Rs 418.25 on 9 April 2013. The stock had hit a 52-week low of Rs 290.11 on 30 July 12.

The stock had outperformed the market over the past one month till 26 July 2013, rising 10.14% compared with the Sensex's 6.45% rise. The scrip had outperformed the market in past one quarter, gaining 15.96% as against Sensex's 2.39% rise.

The large-cap company has an equity capital of Rs 492.87 crore. Face value per share is Rs 2.

Wipro's consolidated net profit rose 3% to Rs 1623.30 crore on 1% growth in revenue to Rs 9734.60 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards. The results are after adjusting for the spinoff of its non-technology businesses, completed in April.

IT services revenue rose 0.2% to $1.58 billion in Q1 June 2013 over Q4 March 2013. Non-GAAP constant currency IT services revenue in dollar terms was $1.60 billion, which was within the company's guidance range of $1.575 billion to $1.61 billion.

Wipro said that the pricing environment was largely stable during the quarter, and the growth was largely volume led. Effective from 1 June 2013, Wipro gave annual wage hike of between 6-8% for offshore employees and 2-3% for onsite employees.

Wipro added 28 new customers in Q1 June 2013.

Commenting on the first quarter results, Wipro Chairman Azim Premji said: "We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US."

T K Kurien, Executive Director & Chief Executive Officer of Wipro said: "We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organizational agility."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said: "Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter."

Wipro provides comprehensive IT solutions and services, including systems integration, information systems outsourcing, IT enabled services, package implementation, software application development and maintenance, and research and development services to corporations globally.

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