Wipro recorded another quarter of disappointing numbers. In the September quarter, revenue growth for Wipro in dollar terms dropped by 0.7 per cent over the previous quarter despite contributions from the newly acquired company – Appirio.

In constant currency terms, revenue growth in the December quarter was up 0.6 per cent sequentially.

The company’s three large verticals – finance solutions, manufacturing and health care – all saw a subdued growth of around 0.1-0.8 per cent sequentially in constant currency terms.

Among geographies, revenue from the US grew 1 per cent (down from 1.8 per cent growth in the September quarter) and that from Europe by 1.3 per cent. Revenue from India and West Asia dropped 4.2 per cent sequentially as Wipro restructured its business in these regions.

The impact of the measures taken by the company to revive growth including the efforts on client mining, didn’t have any impact.

Revenue from top 10 clients declined to 16.9 per cent, from 17.5 per cent in the September quarter and 19.3 per cent in the same quarter last year.

The only positive thing about the result was the performance at the margin level. Operating profit margin improved to 18.3 per cent, up 50 basis points compared to the previous quarter. This was helped by automation.

The company has guided for a sequential dollar revenue growth of about 1-2 per cent for the March quarter.

Wipro acquired Appirio, a large global independent cloud services brand acquired in October for $500 million and became one of the top few players in the global SaaS (software as a service) market.

However, at the net level, the acquisition is only dilutive of earnings. So, in the near term, there may be some pressure on earnings.

If this new acquisition is integrated successfully, the company may do well, but, the market doesn’t look very convinced about this now.