All the key financials travelled in the right direction last quarter for Bangalore-based offshore services firm, Wipro. Headline IT services revenues for the 3 months to 31st Dec. grew by 6.4% to $1.68bn, 2.9% higher (and faster growth) than the prior quarter. Operating margins expanded by over two points yoy to 23.0%, the highest for more than three years. Management expects revenues will grow slightly faster again this – their final – quarter, ending the FY at $6.6bn, 6.6% higher than FY13.
Nonetheless, despite the slightly better trend line than archival Infosys (see Infosys presages final quarter slowdown), Wipro is likely to end the year at around half their FY growth rate, though perhaps at very similar operating margins (who would have believed that even a year ago?).
As usual, we'll have much more to write about the India-centric IT services players – including their UK performance – in the next edition of OffshoreViews.