After Infosys and TCS, it is Wipro's turn to declare its results for the quarter ended June 30, 2011, and analysts are not expecting too much from the company.

Revamp impact

Mr Sanjeev Hota, Associate Vice-President - Institutional Equities, Sharekhan, said Wipro's revenues from IT services may grow around 3.4 per cent in dollar terms on a quarter-on-quarter basis.

“We think that revenues from IT services may touch $1,447.6 million,” he told Business Line .

“They are going through a restructuring and this will reflect in the next two quarters. Therefore, numbers will be on the lower side of expectations.”

Success in verticals

Mr Amneet Singh, Vice-President - Global Sourcing, Everest Group, shared Mr Hota's thoughts.

“We don't expect Wipro to be very different from the trend shown by TCS and Infosys. I think they will be on the lower end of the group as compared with companies such as Infosys and TCS.”

Healthcare, BFSI

While Mr Singh said that it was unreasonable to expect a quick turnaround after a restructuring, he felt that the company could see some success in key verticals.

“We could see some early success in healthcare and BFSI. I look forward to the management talk about how they are seeing strategy play out in both these verticals.”

Gung-ho on long-term prospects

In spite of the fact that expectations from Wipro are muted in the short term, analysts are gung-ho about the company's capabilities in the long term.

Mr Milan Sheth, Partner, Business Advisory Services, Ernst & Young said, “Wipro has both scale and delivery capabilities. They have got their act right.”

Mr Hota too shares these views.

“Nobody is writing off Wipro. In the long term, they will perform better. We are still optimistic about Wipro.”

BPO business

But this said, analysts feel that Wipro could do better in some areas.

Mr Sheth said, “In the BPO space, they need to acquire a domain company. They have built their operations on a call centre model and need to become high-end players,” he said.

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