Wipro has lately seen its technology revenues increase by seven per cent and profits by three per cent QoQ. While operating margins during the quarter were maintained, analysts are predicting an impact of salary hikes during Q2.

Some observers expect Wirpo to register a 30 per cent-plus CAGR in both technology revenues and profits during the 2006-08 period, leading to EPS of Rs 19 and Rs 25 during fiscal 2007 and fiscal 2008 respectively.

However, it seems this performance did not pep up investors' sentiment at the bourses as they expect salary increase to employees might add pressure to the company.

The Rs 2-face valued large-cap stock, a constituent of the main indices, closed at Rs 469.95 on the NSE, up 2.5 per cent in line with general market conditions. This incidentally is a fair bit of come down from its 52-week peak of Rs 749. It lost 4.5 per cent on Wednesday.

Nilanjan Dey

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