It was hard to match the words with the music for Wipro’s Q1 FY12 results. Chairman Azim Premji’s pronouncement that they are seeing “early signs of positive momentum after the re-organization” was simply not reflected in the numbers.
IT services revenues were essentially flat qoq at $1,408m, about 17% higher yoy. This is in stark contrast with both TCS (+6.3% qoq, 31% yoy) and even ‘muted’ growth at Infosys (+4.3% qoq, 23% yoy). Operating margins held steady-ish qoq (actually 10bps light) at 22.0%, though 270bps lower yoy, fully 4 points behind its larger peers.
Describing the trends they are seeing in the marketplace, ‘new’ CEO, TK Kurien explained that “Enterprises are variabalizing their IT to position themselves better for winning in the world of constraints”. I think that means customers are still cutting IT spend. Clearly so for Wipro.
I will be tuning in to the concall later this morning and hope to bring you more later – but you’ll have to be a TechMarketView Foundation Service client to see it!