Shares of Wipro slipped as much as 4.12 per cent on the National Stock Exchange (NSE) in the morning session of trade on Wednesday after the company reported a 2.17 per cent year-on-year fall in its net profit for the quarter ended December (Q3).
The stock of the information technology (IT) services major cracked 4.12 per cent to Rs 246.60 apiece on the NSE, and by 4.08 per cent to Rs 246.65 per share on the BSE.
So far, over 2.31 lakh shares were traded on the BSE and over 65.68 lakh shares exchanged hands during the intraday trade.
On Tuesday, Wipro reported a net profit of Rs 24,559 million (Rs 2,455.9 crore) for the quarter ended December 31, 2019, down 2.17 per cent from Rs 25,104 million (Rs 2,510.4 crore) during the corresponding period year ago. The net profit was also down 3.79 per cent as compared to Rs 25,527 million (Rs 2,552.7 crore) in the September quarter.
Apart from this, the company’s revenue from operations rose 2.73 per cent on-year to Rs 154,705 million (Rs 15,470.5 crore) during the December quarter from Rs 150,595 million (Rs 15,059.5 crore) last year (as per Ind-AS). The earnings per share (EPS) for the quarter was Rs 4.3 per share, the company said in its exchange filing to the BSE.
Wipro said it expects revenues from IT services to be in the range of $2,095 million to $2,137 million in the quarter ending March, which translates into a sequential growth of flat to two per cent.
Wipro’s IT services segment revenue was at $2,094.8 million in the December quarter, a sequential growth of 2.2 per cent. This is in line with its outlook of $2,065 million to $2,106 million guided earlier.
What brokerages said
“We expect the stock could stay range-bound in the near-term given an in-line 3QFY20 results, modest 4QFY20 revenue guidance + no potential cash distribution in the near-term.” JM Financial said in a report maintaining a “HOLD” on the stock with a target price of Rs 270.
“We largely maintain our FY20/21E revenue/EPS forecast. We forecast IT services revenue (in US$) and EPS CAGR of 4% and 6.8% respectively over FY19-21E,” IDBI Capital said in a report. The brokerage maintains “ACCUMULATE” recommendation with a target price of Rs 269 based on PER of 15x FY21E.
(With PTI inputs)