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Wipro declines 4 p.c. after Q1 results

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CIOL Bureau
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BANGALORE, INDIA: Shares of Wipro Ltd, the country's third largest software exporter, slipped by over 4 per cent on the bourses on Wednesday after the company posted a marginal rise in its quarterly net profit and a muted guidance for the second quarter.

At 12.20 p.m. IST, Wipro shares were down by 4.25 per cent, at Rs. 397.35, losing Rs. 17.65 a share.

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After announcing the results the software exporter projected an average revenue of $1.5 billion for the July-September quarter and it expects the revenue from its global IT services would be in the range of 1,436 million to $1,464 million, which is more or less the same as Q1.

The IT major to day said that its net profit for the fiscal first-quarter was Rs. 1335 crore ($299 million) under international accounting standards, compared to Rs. 1319 crore a year ago.

Bleak result, says analyst

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Responding to the results, Arup Roy, principal research analyst at Gartner said this is a bleak result.

“I would have expected a much higher sequential growth but as per market expectations they did not stray much. Although a decline in profits is slightly disappointing which they attribute to rise in the wages,” he said.

Though a muted second quarter guidance reflects the cautious buyer sentiments, it is more so because of the fact that Wipro has been undergoing tremendous internal change and restructuring activities, he added.

“A full blown results of this restructuring would be visible only after two quarters,” said Roy.

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