Shares of Wipro tanked nearly three per cent to hit an over-nine-month low today,wiping out Rs 915 crore from its market capitalisation,after the firm announced muted IT service revenue guidance for the second quarter of this fiscal.
Shares of the company slumped more than 4 per cent on the BSE and touched an intra-day low of Rs 341. At the end of today’s trading session,the company stock was quoted at Rs 346,down 2.93 per cent from yesterday’s close.
This is the lowest level since October 11,2011,when the stock had closed at Rs 341.45 on the BSE.
In the process,the market capitalisation of the company eroded by Rs 915 crore to Rs 85,115 crore from Rs 86,030 crore yesterday.
Wipro today reported 18.37 per cent increase in consolidated net profit at Rs 1,580.2 crore for the first quarter,but maintained that its revenue outlook for the
July-September quarter to be in the same range as that of the quarter ended June 30 of the current financial year.
Explaining the fall in the counter,Angel Broking Research Analyst (IT) Ankita Somani said,”Though the operating margins as well as profitability was inline with our estimates,Wipro’s IT services revenue growth disappointed”.
The company had targeted its IT services revenues to be in the range of USD 1,520 million to USD 1,550 million for the April-June 2012 quarter.
Wipro’s results were below expectations. EBIDTA margins also disappointed. The guidance for 2Q also reflects the macro uncertainty and the limited revenue visibility for the company,” said Dipen Shah,Head of PCG (Private Client Group)
Research,Kotak Securities. Wipro has been restructuring its business and this,along with the uncertain demand scenario,has impacted revenue growth. The performance will improve in line with the improvement in the macro scene,Shah added.
Amid perceptions of ‘policy paralysis’,top industry leaders,including co-founder of home-grown global IT giant Infosys,N R Narayana Murthy and Premji,had in June expressed concerns over the current state of affairs in the economy,saying India’s image seems to have taken a hit.
Premji had then said,We are working without a leader as a country. If we do not change,we would be down for years