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Shares of software services exporter, Wipro, fell as much as 6.94 per cent to Rs 263.35, their biggest intraday percentage drop since November 9, 2016, on disappointing Q1 results.
The company had on Friday reported a net profit of Rs 2,093.6 crore, up 0.53 per cent, when compared to 2,082.4 crore net profit posted last year. Revenues came in at Rs 13,977.7 crore, a 2.58 per cent jump, when compared to Rs 13,626.1 crore it posted in the year-ago period.
Jefferies has raised the price target to Rs 250 from Rs 240 and retained “underperform” rating. Consolidated EBIT/EBIT margin disappointed partly on account of unusually high provisions in IT products but also miss in IT services, which the management attributed to lower profitability in healthplan services, India & West Asia, it says.
“Don't see any meaningful uplift to FY19 revenue expectations on the back of weak commentary of revenue headwinds from utilities, communications, healthcare and India business,’’ says Investec Securities.
About six of the 43 analysts covering the stock have 'buy' or higher rating, 21 have 'hold' and 16 have 'sell' or lower; their median price target is Rs 286.50. Over 5.5 million shares changed hands in the first hour of trade, more than the 30-day average of 3.5 million shares.
Wipro stock had fallen 9.94 per cent this year as of last close, underperforming Nifty IT index's 26 per cent gain.
(With inputs from Reuters)
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