India's third-largest software-services exporter, Wipro reported second-quarter profit that beat analysts' estimates, as the global economic recovery spurred clients to increase orders.

The net income rose 22 per cent in the quarter.

Azim Premji, chairman of Wipro, said, "Business is stabilizing, clients are making decisions, price stability is there and volumes is expected to pick up."

Premji is all smiles and why not, Wipro has beaten the street expectations yet again.

The company’s revenue stood at Rs 6984 crore, up 8 per cent QoQ. The profit was at Rs 1177, up 16 per cent and a margin expansion of 143 basis points at 23.6 per cent.

Suresh Vaswani, joint CEO of Wipro, said, "We have upped our guidance, despite lesser working days this quarter."

However, a galloping rupee is keeping the Wipro management guessing, just like its peers.

No wonder then that the company’s management is still a conservative lot. Unlike Infosys, Wipro is not giving pay hikes to employees across board.

Suresh Senapaty, CFO of Wipro, said, "The rupee is extremely volatile. Oil is on fire and inflation is going up. It will put pressure on rupee. The RBI needs to address the rupee volatility."

Meanwhile, Wipro headquarters is buzzing. The management is confident and optimistic about the business environment, however, low volumes is a clear cause of worry and that’s where smart mergers and acquisitions may come handy.