Momentum good despite margin pressure: Wipro

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the December quarter, including a large European bank and a U.S.-based retail firm.

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Wipro, which provides IT solutions and services such as system integration, software application development and maintenance and research services, said March quarter operating margins were likely to take a hit of 1 per cent from higher wages.

"Our objective is to mitigate (that) as much as possible, but we think the operating margin will be in a narrow range," Senapaty said.

Wipro and bigger rivals Tata Consultancy Services and Infosys Technologies, which both beat expectations and forecast strong growth earlier this month, are rapidly expanding into Europe, Asia Pacific and Latin America.

That will help reduce their dependence on the US market, where Wipro earned more than 62 per cent of its revenue in the December quarter.

A strong rupee, which rose 12 per cent against the dollar last year, poses a risk to software services firms that get over three-quarters of their revenue from overseas.

Sector leader Tata Consultancy beat forecasts on Wednesday with a 20.5 per cent rise in quarterly profit and Infosys last week posted a 25 per cent rise and raised its full-year guidance.