Revenue for the quarter was $461m (exp: $462m), growth of 7.5% qoq. Net profit came in at Rs3.11 b (exp: Rs3.08 b), an increase of 9.6% qoq. On margins, HCL Tech did well to absorb the negative impact of the customer summit related costs and bonus amendment adjustment.
IT Services did well again with a growth of 8.4% qoq. Volumes increased ~7.4% qoq while pricing was up ~2% sequentially. EBIT margins improved slightly qoq to ~18.1%. HCL Tech’s US revenues increased 9% qoq while BFSI revenues were up 9.3% qoq.
Wipro reported revenues of Rs.56.4b (our exp: Rs.56.6b), up ~11% QoQ and net profit of Rs.8.3b (our exp: Rs.8.4b), up ~2% QoQ. Global IT Services reported revenues of $910m, up 14% QoQ with a ~150bp EBIT margin decline (primarily due to Infocrossing integration).
Organic growth of 7.4% in Global IT – Organic revenues rose 7.4% QoQ; volumes increased 6.5% while pricing was up 0.5%. Onsite realizations were up 1.3% QoQ while offshore realizations remained stable in the quarter. Better pricing realization and employee mix resulted in stable margins for organic business – despite wage hikes and rupee appreciation.
Guidance of 5% revenue growth – Wipro Global IT Services revenue guidance for 4QFY08 is $955m, an increase of ~5% – is in line with the Infosys guidance for the quarter.