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.
Share price of Wipro surged nearly 10 per cent on Friday after the company posted 27.7 per cent rise in consolidated net profit for quarter ended on March 31, 2021.
On the BSE, the company’s stock was trading 9.22 per cent higher at Rs 470.75, while on the NSE it was at Rs 470.75, up by 9.30 per cent.
Wipro on Thursday posted its consolidated net profit at Rs 2,972 crore for the March 2021 quarter, as compared to Rs 2,326.1 crore in the year-ago period.
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Company’s revenue from operations rose by 3.4 per cent to Rs 16,245.4 crore in the reported quarter, from Rs 15,711 crore in the same period last fiscal.
Wipro, which gets a bulk of its topline from IT services, said it expects revenues from that unit to be in the range of $2,195 to $2,238 million in the June 2021 quarter. This translates into a sequential growth of 2-4 per cent.
Wipro’s IT services segment revenue was at $2,152.4 million in the March quarter, a sequential growth of 3.9 per cent.
“Our Q4 performance was built on top of our momentum that we saw in the last quarter. We have reported a solid growth in revenue, healthy order booking and great execution, resulting in robust margins.
“This truly sets the stage for the next quarter and the next financial year,” Wipro CEO and Managing Director Thierry Delaporte told reporters. He added that revenue of 3.9 per cent in reported terms and 3 per cent in constant currency terms is at the top quartile of its guidance range.
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