Shares of IT major Wipro Ltd today slumped over 11 per cent, wiping off Rs 7,712 crore from its market cap after lower-than-expected results on revenue as well as on margin front.
After making a weak opening, the scrip further lost 11 per cent to Rs 328 on the BSE, in an overall strong stock market. The stock was the top loser among the 30-Sensex components in the morning trade.
On the NSE, the scrip tanked 11.25 per cent to Rs 327.50.
Led by the steep loss in share price, Wipro’s market value tumbled Rs 7,712 crore to Rs 83,084 crore.
“For Q4 FY’13, Wipro came out with lower-than-expected set of results on revenue as well on margin front. For Q1 FY’14, the management’s US dollar revenue guidance is also below ours and street expectations as Q1 traditionally is a strong quarter for IT companies,” Angel Broking said in a report.
Wipro had on Friday reported a 16.73 per cent increase in net profit to Rs 1,728.70 crore for the fourth quarter ended March 31, 2013. The net profit stood at Rs 1,480.90 crore in the year-ago period.
Consolidated total income rose 13 per cent to Rs 9,613.1 crore during the January-March quarter of 2012-13 fiscal against Rs 8,506.10 crore in the same period of 2011-12 fiscal.
The company has said that it expects revenues from its IT services business to be in the range of $1.575-1.610 billion for the first quarter (April-June) of the current fiscal.