Wipro

If Infosys and TCS disappointed, can Wipro do anything contrary? The Q1FY17 performance of Wipro was indeed a disappointment and the stock price is sure to reflect the same. Lower revenue and operating profit left a telling effect on the consolidated net profit, which fell 8% (QoQ) at Rs.2052 crore. Its revenue was flat, down 0.3% at Rs.13,698 crore. Dollar revenue was up 3% at $1904 million.

The big let down was the drop in EBITDA margins, which slipped to 17.75% from 19.7% (QoQ). Also, like Infosys, the guidance given for Q2FY17 is much below what was expected – it expects revenue from IT services business at $1931 to 1950 million, which represents a growth of less than 1% over current Q1.

In terms of verticals,Hleathcare Life Sciences and Services showed the best sequential growth of 18% while Energy, Natural Resources and Utilities showed a de-growth of -2.7%. In terms of geography, Americas grew 4.5%, APAC and other emerging markets rose 0.7%, Europe was up 1.7% and it was in fact India and the Middle east which showed a de-growth of -2.5%.

Attrition has risen from 14.9% to 17.9%. The head count at the end of Q1FY17 was at 1,73,863 v/s 1,72,912 in Q4FY16 – a few employees less.