Wipro shares nosedived over 9 pc after missed earnings expectations
Shares of IT major Wipro nosedived on Monday by nearly 9.3 per cent over missed expectations in its April-June quarter results and a weak guidance for the next quarter.
Software major Wipro on Wednesday posted a 6.3 per cent year-on-year (YOY) fall in net profit at Rs 2,345.20 crore for March quarter. That marked the drop of 5.29 per cent compared to the previous quarter of Rs 2,455.9 crore.
As per an ET report, experts were expecting the total figure to fall around Rs 2,356 crore.
In a regulatory filing, the company had said that its consolidated revenue for the fourth quarter, however, rose 4.2 per cent to Rs 15,711 crore from Rs 15,006 crore in the year-ago quarter.
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Abidali Z. Neemuchwala, CEO and Managing Director said, “In these unprecedented times, I am extremely proud of how the Wipro team has come together and worked 24/7 to ensure the safety and well-being of each other while continuing to serve our clients. We hope that all of us stay safe and strong during these tough times. We are confident that our broad portfolio of services and our ability to execute to our commitments makes us well-positioned to gain market share.”
The IT service revenue generated $2.073.7 million for the quarter, down 1.0 per cent from the preceding quarter, the company said.
For FY20, net profit grew 8 per cent YoY to Rs 9,720 crore and gross revenue up 4.2 per cent to Rs 61,020 crore. IT services revenue grew 1.7 per cent to $8,256 million ($8.3 billion) YoY.
In dollar terms, net income for FY20 was $1,300 million ($1.3 billion) and gross income $8,100 million ($8.1 billion).
The company’s board has not recommended final dividend for FY20. “An interim dividend of 50 per cent or Rs 1 per share of Rs 2 face value, declared on January 14, shall be considered as the final dividend for the fiscal,” the company said in the regulatory filing.
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