Wipro shares tanked more than 8 per cent in the morning trade today after the company reported a 28 per cent growth in its consolidated net profit for the second quarter ended September 30, 2013.
India’s third largest IT exporter had announced its second quarter results after market hours yesterday.
Wipro posted a net profit from continuing operations at Rs 1,932.1 crore during the second quarter against Rs 1,510.5 crore in the year-ago period.
The stock, however, discounted the second quarter numbers and fell 8.41 per cent on the BSE to Rs 471.55. Similarly, on the NSE, the stock opened weak and slumped 6.33 per cent to Rs 482.20.
Market experts said that the decline in the counter was largely because the company’s second quarter revenue in terms of dollar lagged behind its peer group companies.
In dollar terms, Wipro’s net profit stood at $309 million during the second quarter of this fiscal, while consolidated revenues were at $1.76 billion.
IT services revenue rose 20 per cent to Rs 10,068 crore. In dollar terms, IT revenues rose 5.9 per cent year-on-year to $1.63 billion, whereas sequential growth stood at 2.7 per cent.
Meanwhile, the broader market was also trading in the negative territory with the 30-share benchmark index Sensex trading at 20,736.49 points, down 128.48 points in the morning trade.