There are some clear positives in Wipro’s performance this quarter:

• Revenue just topped prior guidance ($1,620-$1,630m), and the constant currency growth of 7.9% was the highest for five quarters
• This is the first quarter since Q3 FY 2012 when Wipro has reported revenue growth across all its vertical units, with even media and telecoms achieving low single digit growth
• Operating margin is the strongest it has been since FY 2011, albeit boosted by currency benefits
• Utilization has picked up after being below 72% for three quarters - though it remains significantly below that of Wipro's peers
• Revenue growth in the top 10 clients continues to outstrip overall growth.

The Americas (essentially the U.S.) continue to be the weakest region at Wipro in terms of overall topline growth. Elsewhere, Wipro continues to see double digit growth in APAC and other emerging markets, which together crossed the $200m revenue mark this quarter and accounted (by NelsonHall’s estimate) for ~35% of the overall y/y revenue growth, with EMEA accounting for another 40%.

In terms of service line, Technology Infrastructure Services and Business Application Services continue to be the growth engines for Wipro, although the rate of growth in the former is slowing slightly. Encouragingly, two weak areas, ADM and R&D services (the latter exposed to softness in the telecoms market) are showing signs of stabilization.

The revenue guidance for next quarter indicates we should expect to see similar, or slightly stronger growth next quarter.