 "Wipro dips on disappointing Q1 earnings")
Wipro has dipped 7% to Rs 511 on the BSE in early morning trade after the company’s IT services margin narrowed to 17.8% in the June quarter compared with 19.7% in the quarter ended March 2016.
The company expects revenues from our IT Services business to be in the range of $ 1,931 million to $ 1,950 million in July-September quarter (Q2FY17).
“Wipro’s Q2FY17 IT services revenue growth guidance of flat-to-1% growth is a disappointment. Wipro attributed this to weakness in the Energy vertical, traditional services (due to automation) and restructuring of the India & Middle East business,” analyst at IDBI Capital said in a results update.
Analyst at Antique Stock Broking believe portfolio challenges in terms of higher exposure to energy, weakness in top clients and softness in India and Middle East (IME) segment is weighing on the revenue trajectory.
“We believe, Wipro's portfolio related issues coupled with uncertainty around Brexit impact will delay the turnaround to play out, hence we cut our target P/E multiple to 14x from 15x. We maintain our Hold recommendation with a revised target price of Rs 540 (Rs 610 earlier),” the brokerage firm said in a Q1FY17 results preview.
Meanwhile, the Wipro reported 8.3% quarter-on-quarter drop in its consolidated net profit at Rs 2,052 crore for the quarter ended June 30, 2016 (Q1FY17). The company had profit of Rs 2,238 crore in March 2016 quarter and Rs 2,192 crore in June 2015 quarter.
Income from operations remained flat at Rs 13,698 crore in June quarter against Rs 13,742 crore in previous quarter.
At 09:44 AM, the stock was down 4.6% at Rs 524 on the BSE, as compared to 0.3% rise in the S&P BSE Sensex. The stock is currently trading near to its 52-week low of Rs 509 touched on BSE on February 29, 2016 during intra-day trade. A combined 2.5 million shares changed hands on the counter on the BSE and NSE so far.
The company expects revenues from our IT Services business to be in the range of $ 1,931 million to $ 1,950 million in July-September quarter (Q2FY17).
“Wipro’s Q2FY17 IT services revenue growth guidance of flat-to-1% growth is a disappointment. Wipro attributed this to weakness in the Energy vertical, traditional services (due to automation) and restructuring of the India & Middle East business,” analyst at IDBI Capital said in a results update.
Analyst at Antique Stock Broking believe portfolio challenges in terms of higher exposure to energy, weakness in top clients and softness in India and Middle East (IME) segment is weighing on the revenue trajectory.
“We believe, Wipro's portfolio related issues coupled with uncertainty around Brexit impact will delay the turnaround to play out, hence we cut our target P/E multiple to 14x from 15x. We maintain our Hold recommendation with a revised target price of Rs 540 (Rs 610 earlier),” the brokerage firm said in a Q1FY17 results preview.
Meanwhile, the Wipro reported 8.3% quarter-on-quarter drop in its consolidated net profit at Rs 2,052 crore for the quarter ended June 30, 2016 (Q1FY17). The company had profit of Rs 2,238 crore in March 2016 quarter and Rs 2,192 crore in June 2015 quarter.
Income from operations remained flat at Rs 13,698 crore in June quarter against Rs 13,742 crore in previous quarter.
At 09:44 AM, the stock was down 4.6% at Rs 524 on the BSE, as compared to 0.3% rise in the S&P BSE Sensex. The stock is currently trading near to its 52-week low of Rs 509 touched on BSE on February 29, 2016 during intra-day trade. A combined 2.5 million shares changed hands on the counter on the BSE and NSE so far.