NEW DELHI: Shares of IT bellwether Wipro tumbled 7 per cent in early trade on Wednesday, a day after it posted weaker-than-expected earnings for June quarter.
India’s fourth largest IT firm by sales reported an 8.31 per cent fall in consolidated net profit at Rs 2,052 crore for the June quarter. This was against a Rs 2,238 crore profit that the company reported for the March quarter.
Consolidated revenue for the quarter stood at Rs 13,697.60 crore, down 0.3 per cent QoQ against Rs 13,741.70 crore in the March quarter.
Following the development, the stock fell 7 per cent to hit a low of Rs 511 on BSE. At 9:25 am, the scrip was trading at Rs 524.45 per share, down 4.54 per cent.
Motilal Oswal Securities in a note said, “Wipro’s Q2 guidance of 0-1 per cent sequentially on constant currency terms was a dampener. The Q1FY17 CC revenue growth of 2 per cent was in line with estimate.”
“We maintain that Wipro will remain a laggard on the growth front in the largecap space. However, valuation comforts limit downside. We maintain a buy rating with revised target price of Rs 630 (earlier Rs 650),” Edelweiss Securities said in a report.