See broadbased growth for Wipro going forward: Experts

In an interview to CNBC-TV18 Sarabjit Kour Nangra Angel Broking and Dipesh Mehta, IT Analyst, SBICAP Securities shared their views on the better than expected third quarter performance of Wipro.Nangra expects Wipro to perform better after the market opening on back of better than expected third quarter numbers. "The numbers were good, reaching towards the higher end of the guidance, profitability also broadly inline, so a very good set of numbers," she adds.

Wipro 's third quarter profit (from IT services and products business) jumped 5 percent sequentially to Rs 2,203.1 crore. "We saw all round growth led by growth in healthcare & life sciences business and global infrastructure services," said Suresh Senapaty, executive director & chief financial officer.The software services exporter expects IT services dollar revenue in the range of USD 1.81-1.85 billion for the March quarter of current financial year 2014-15, implying 1-3 percent growth over third quarter.Dipesh Mehta, IT Analyst, SBICAP Securities says the numbers give confidence of future growth prospects because it was reasonably broad based. All the verticals and geographies contributed towards growth, which is very comforting, he adds.The stock is sure to do well going forward, says Mehta. The guidance given by the company too is in line with expectations, he adds.Below is the transcript of Sarabjit Kour Nangra and Dipesh Mehta’s interview with Reema Tendulkar and Kritika Saxena on CNBC-TV18.Reema: Your initial reactions to the numbers?A: As you pointed out Q3 normally is better for Wipro unlike other IT companies with exception of Infosys this time around.  The numbers were good, reaching towards the higher end of the guidance, profitability also broadly inline so a very good set of numbers. Reema : The company is come out with the guidance of USD 1,814 to 1,850 million so that turns out to be about 1 to 3 percent. How would you read the guidance?A: The guidance is good enough for the next quarter of this year. Reema: How do you expect this stock to do tomorrow?A: Stock is expected to be better when it opens because firstly, it has beaten the expectations and secondly unlike other IT companies this stock is still struggling with kind of unclarity in terms of how this performance or the company can sustain performance over the long period of time. A bit like Infosys had the last couple of quarters back so Wipro continues to do so well, even last quarter they had a decent performance, this quarter also leading towards the higher end of the guidance and a decent guidance going forward, so I think it should move towards the higher side only.Reema: Your take on Wipro Q3 numbers?Mehta: It gives confidence because growth seems to be reasonably broad based. All verticals and geographies have contributed to the growth which gives good comfort.Reema: How much higher do you expect the stock to go on or at least move up in Monday’s trade and thereafter in the next one month do you think that considering that it is outperformed even Infosys as well as TCS in the quarter, in the next three months Wipro could actually be the big outperformer from three-month point of view?Mehta: I would not take hazard of guessing one day movement kind of think but Wipro’s performance gives confidence about the recovery in their growth momentum and from a stock perspective likely to do well.Kritika: A word on the guidance?Mehta: Guidance is broadly inline. 1-3 percent is what they guided for the next quarter that is broadly the expected range what they are expected to guide.