Shares of Wipro slipped as much as 3.2 per cent as the country’s third largest IT services provider posted an 8.4 per cent decline in net profit for the third quarter year-on-year due to higher costs.
After opening the session on a weak note at Rs 319.50, the stock fell further 3.3 per cent to an intra-day low of Rs 317.70 on the BSE. On the NSE, the stock opened at Rs 327.00, then lost further ground to touch a low of Rs 320.50, down 1.49 per cent over the previous closing price.
The stock was the second highest loser in percentage terms among Sensex scrips.
The company’s consolidated net profit came in at ₹1,931.3 crore, a decline of 8.4 per cent when compared to ₹2,109.6 crore in the same period last year. On a sequential basis, there was a dip of 11.6 per cent. Revenue from IT services came in at ₹13,669 crore, which was higher by nearly 2 per cent year on year.
Wipro said it expected revenue from the IT services’ business to be in the range of $2.03-2.07 billion (in constant currency) or 1-3 per cent for the quarter ending March 31, disappointing some analysts who expected a slightly higher range while Urmil Shah, analyst with IDBI Capital, said the guidance is in line with their expectations.