Wipro results in line with market expectations: analysts
Wipro Ltd on Wednesday posted an “in line with the market expectations” performance clocking a net profit growth of 18.76 per cent at Rs 978 crore for the Q2 September 2008.
By ET Online |
MUMBAI - Wipro Ltd on Wednesday posted an ���in line with the market expectations��� performance clocking a net profit growth of 18.76 per cent at Rs 978 crore for the Q2 September 2008. Revenues grew by 36 per cent at Rs 6664 crore, from Rs 4883 crore in Q2 last year.
While analysts believe that the overall improvement has helped the company post a decent results, concerns remain given the global meltdown.
Senior IT analyst at Khandwala Securities said, ���Product margin of the company has increased from 3.0 per cent to 4.3 per cent; it shows the overall improvement in the company's operations.���
���In overseas market, company posted 3.3 percent growth; it���s a decent number considering the current financial crisis in global markets," he added.
Talking to the media, the Wipro management gave a conservative guidance due uncertainty in the markets and holidays in Q3.
Further, Wipro is looking at automotive, healthcare and industrial automation clients.
���One of the reasons for decent earnings by the company in the quarter lies in company's ability to integrate among various business,��� said Madan Mohan, Managing Partner at Browne and Mohan.
He added that there are indications of maturity visible in the quality consulting sector of the company where it is doing extremely well.
Even as analysts maintain a neutral view on the company, there are some concerns keeping in mind the overall global business environment.
���The BFSI and TMT sectors may seen slowdown which may have an impact on the revenues accruing to Wipro from these sector. Further, one needs to watch the Re-$ exchange rate as well,��� said the IT analyst from Khandwala Securities.
Wipro shares closed at Rs 279.25, down 5.79 per cent from the previous close.
While analysts believe that the overall improvement has helped the company post a decent results, concerns remain given the global meltdown.
Senior IT analyst at Khandwala Securities said, ���Product margin of the company has increased from 3.0 per cent to 4.3 per cent; it shows the overall improvement in the company's operations.���
���In overseas market, company posted 3.3 percent growth; it���s a decent number considering the current financial crisis in global markets," he added.
Talking to the media, the Wipro management gave a conservative guidance due uncertainty in the markets and holidays in Q3.
Further, Wipro is looking at automotive, healthcare and industrial automation clients.
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���One of the reasons for decent earnings by the company in the quarter lies in company's ability to integrate among various business,��� said Madan Mohan, Managing Partner at Browne and Mohan.
He added that there are indications of maturity visible in the quality consulting sector of the company where it is doing extremely well.
Even as analysts maintain a neutral view on the company, there are some concerns keeping in mind the overall global business environment.
���The BFSI and TMT sectors may seen slowdown which may have an impact on the revenues accruing to Wipro from these sector. Further, one needs to watch the Re-$ exchange rate as well,��� said the IT analyst from Khandwala Securities.
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Wipro shares closed at Rs 279.25, down 5.79 per cent from the previous close.
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