India-centric IT/BP services major, Wipro, sustained its somewhat muted pace of growth last quarter (to 31st Dec.) with revenues reaching $1,57bn, just under 5% higher yoy and 2.4% higher than the prior quarter, broadly similar to Bangalore-based archrival, Infosys (see Infosys holds its own), though nowhere near the yoy growth experienced by Mumbai-headquartered TCS (see TCS holds on to margin crown) and Chennai-based HCL (see HCL still rolling along).
Wipro’s operating margins were bang in line with the year-ago quarter, at 20.8%, and 10 bps higher than the prior quarter. Profitability is still substantially lower than TCS and Infosys, and there now seems to be a real risk that HCL could soon overtake them too. Management is forecasting another muted quarter, which would set their FY growth (to 31st March) around 5%, a little less than Infosys is forecasting (TCS and HCL do not give ‘guidance’).
Both Wipro and Infosys are still afflicted by the ‘Bangalore Blues’ and are trying desperately to recast their businesses to restart growth (and see Wipro: Is differentiation the key to growth?). If Teaneck, New Jersey-headquartered Cognizant makes the numbers, they will end the year 20% up. When they report (usually Feb) they will also be the first of the India-centric players to give a growth forecast for 2013 – should they be so brave!
As ever, eligible TechMarketView subscription service clients will be able to read our usual end-of-year round-up of the UK performance of all the India-centric ‘majors’ in the next edition of OffshoreViews.