Wipro Shares Decline Over 4% Post Q2 Earnings

Shares of IT services company Wipro on Thursday declined more than 4 per cent after the firm's September quarter earnings failed to meet market expectations.

The stock fell 4.24 per cent to Rs 390.10 apiece on the BSE.

On the NSE, it declined 4.25 per cent to Rs 390.10 per piece.

The stock was the biggest laggard among both the BSE Sensex and NSE Nifty firms during the morning trade.

The company's quarterly earnings came in after market hours on Wednesday.

IT services company Wipro on Wednesday reported an almost flat consolidated net profit at Rs 2,667.3 crore for the September quarter, trailing street expectations, and projected up to 3.5 per cent fall in revenue in the current quarter on weak global economic outlook and uncertain business environment.

The company had posted a profit after tax of Rs 2,649.1 crore a year ago.

The IT services business revenue is expected to contract 3.5 per cent to 1.5 per cent in constant currency terms, the company said, outlining its sequential guidance as Wipro CEO Thierry Delaporte flagged the prevailing uncertainty in business environment, lower discretionary spends, and acknowledged that conversion of order books has indeed become slower.

The consolidated revenue from operations declined marginally to Rs 22,515.9 crore during the reported quarter from Rs 22,539.7 crore in the year-ago period.

"Wipro reported broadly weak financial performance for the quarter. Both, the revenue growth and EBIT margin were below expectation," according to a report by YES Securities.