PINC Research has reiterated its hold rating on Wipro with a price target of Rs 225 in its April 23, 2009 research report.
“Wipro reported Q4FY09 results in-line with the expectation and guidance. The pricing grew by 3% YoY, better than its peers, resulting in IT services revenue of USD 1,046 million (USD 1,058 million @cc, against guidance of USD 1,045 million). Wipro reported flat Q4FY09 with consolidated revenue of Rs 65.5 billion (touch above the consensus estimate of Rs 65.3 billion). Operating margin improved by 24bps QoQ to 16.6%.”
“The onsite realization rate declined by 0.1% QoQ whereas offshore realization improved by 0.8% QoQ. The clients are demanding a pricing cut of 0-5% and 0-10% IT budget cut. The management commented that shift towards fixed price is not going to improve pricing. The management was cautiously optimistic on demand environment. We reiterate our ‘HOLD’ rating with a price target of Rs 225,” says PINC’s research report.
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