What’s in store for Wipro after Q3 results? Gaurang Shah answers

What is your first reaction to the Wipro numbers?

I think they are in line with expectations. Other than a very-very marginal miss on some fronts, which will not reflect on the stock when we get back to trade tomorrow morning.

As you said that there is a marginal miss, but with the sort of expectation that was elevated, how do you think a marginal miss will be taken forward by the markets?

I think that will depend on the commentary of the management for the quarters to come by and the outlook for the next financial year. This kind of a marginal miss, won’t be punished by the market.

Enough has been said about the new CEO who has been trying to turn the company around, now we talk about Wipro becoming one of the preferred counters when it comes to the large caps in the IT space as well. Look at the order book – seven new customers in the 100 million plus deal size range. If you look at the EBIT margin also, it all seems to be looking good?

Yes, I think after a long period of underperformance, Wipro over the last couple of quarters has delivered better numbers and that has also been reflected in the share prices and the market’s positive outlook with the company. I guess the new brains at the top level definitely brings in turnaround and many more opportunities as we go forward from there on. And overall we believe that from a long term point of view in the portfolio, IT definitely has to have some amount of allocation and space for long term investors given the growth outlook that lies ahead.