Wipro's 2Q 10 performance surpassed rival companies Infosys Technologies (Infosys) and Tata Consultancy Services (TCS). The company reported sequential revenue growth of 10.3% compared to Infosys' 2.1% and TCS' 3.2%, although it can be argued that the company's diversified business lines, apart from IT Services and Products make direct comparison difficult. The robust growth witnessed is testament to improving business conditions in the Information…

Wipro did a commendable job on managing costs during 1Q 10 and expanding margins despite pricing headwinds, mainly through tighter control over travel expenses, prudent and efficient use of communication methods, lower raw material charges related to its Products business, favorable shift in revenue mix and improved utilization, all of which translated into improved margins across segments. Management commentary on the sustainability of these efforts to further…

Wipro Ltd.'s (Wipro) common stock price has appreciated 20.5% since our previous changed in rating, supported by a broader market recovery. Although we expect demand for IT and BPO services to stabilize towards the end of 2009, we remain concerned regarding the near term impact of declining demand for IT services from the US and European clients, who collectively account for more than 80% of Wipro's revenues. Based on the…