Wipro - Q2 FY2014 Results - First Cut - Microsec

Wipro Ltd (Wipro) announced its Q2 FY2014 results on 22 October 2013. The company's results came above Bloomberg Consensus Estimates.

While Wipro's top line increased 12.9% sequentially to Rs. 10,990.7 Crores, its bottom line expanded 19.0% q-o-q to Rs. 1,932.1 Crores in Q2 FY2014. As expected, the growth in top line was mainly fueled by depreciation of Rs. versus $. In addition, the company reported 2.7% sequential increase in $, terms, IT Services Revenues to $1,631.1 Mn. On operational front, Wipro added 45 new clients and won several large deals in Q2 FY2014.

Depreciation of local currency also helped the company to report healthy 252 basis points (bps) q-o-q increase in its operating margins of IT services business. While the growth in Wipro's top line remained below its peers, its guidance for Q3 FY2014E remains encouraging. The company expects the IT Services Revenues to remain in range of $1,660 Mn to $1,690 Mn implying a q-o-q increase of ~2-4%. However, considering the company's relative performance vis-à-vis its peers, we remain neutral on the stock at current juncture.

Source : Equity Bulls

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