Ten key takeaways from Wipro Q3 results

BENGALURU: Here are 10 takeaways from the third quarter results of Wipro, which declared its number this after market hours this evening.

Revenue: Wipro reported a revenue growth of 1.3% to $1,795.4 million for the three month period ending December.

Guidance: Wipro’s expects a quarterly growth between $1808-$1842 million for the fourth quarter. The National Association for Software and Services Companies expects the industry to grow 13-15% in FY15.

Attrition: The Bengaluru-based company reported a downtick in attrition rate to 16.5 % as against 16.9% at the end of July-September period.

Hiring: Wipro's headcount as of December 31 totaled 156,866 employees.

Client additions: Wipro added 44 new clients during the period as against 50 clients in the July-September period, thereby taking the total number of Wipro's active clients to 1018.

Geographies: North America grew 2.0% sequentially while Europe saw a 0.6% growth. However, revenues from India and Middle East, jumped 5.7%.

Verticals: Banking financial services and insurance space, which now accounts for 25.7% of Wipro's revenues, grew 0.2% while manufacturing and hi-tech recorded a 1.6% growth. Healthcare recorded a 6.1% growth.

Margins: Wipro’s margin declined by 20 basis points to 21.8% as against 22.0% at the end of second quarter.

Discretionary spending: Wipro sees discretionary spending returning in some of its clients and the company expects this to power revenue growth in its digital business.

Utilisation: Wipro’s gross utilization declined to 68.5 % during the three month period from 70% at the end of July-September period.