Wipro shares slide nearly 4% post Q1 earnings

Shares of the country's third-largest software services firm Wipro were down nearly 4 percent Friday after the company's June quarter earnings failed to impress investors.

Mumbai: Shares of the country's third-largest software services firm Wipro were down nearly 4 percent Friday after the company's June quarter earnings failed to impress investors.

After falling 3.97 percent to Rs 565 in intra-day, shares of the company finally ended at Rs 566.45, down 3.73 percent on the BSE.

At the NSE, the stock dipped by 3.78 percent to Rs 566.75.

In line with the weakness on the stock, the company's market valuation tumbled Rs 5,409.61 crore to Rs 1,39,883.39 crore.

Wipro yesterday reported four percent rise in Net profit at Rs 2,187.7 crore for the June quarter of 2015-16 fiscal against Rs 2,103.2 crore during the same period of the previous fiscal.

The firm expects the coming quarters to be better than the quarter under review.

Its total income rose 10.5 percent to Rs 12,894.8 crore for the said quarter from Rs 11,669.4 crore in the year-ago period.

The firm's IT services revenue, which constitutes a major share of its total earnings, saw a sequential growth of 1.1 percent to USD 1.79 billion in the said quarter, meeting its revenue guidance of USD 1,765 million to USD 1,793 million.

Dipen Shah, Head of Private Client Group Research at Kotak Securities, said Wipro's revenue growth of 0.2 percent in constant currency terms was slightly lower-than-estimated.

"Growth was largely impacted by continuing softness in the energy vertical. However, the Q2 guidance of 1.5-3.5 percent is slightly ahead of expectations," he said.

Meanwhile, in the broader market the BSE Sensex ended at 28,112.31, down 258.53 points.

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