 "Wipro hits over two-year low")
Shares of Wipro have fallen to over two-year low at Rs 493, down 2.4% on the BSE. The stock of IT consulting & software major is currently quoting at its lowest level since June 5, 2014.
It has underperformed the market by falling 13.6% from its recent high of Rs 574 touched on July 13, 2016, as compared to a marginal 0.07% rise in the S&P BSE Sensex.
Post April-June (Q1FY17) quarter results, on July 19, the stock is down 10% against 0.17% rise in the benchmark index.
Wipro’s IT services margin narrowed to 17.8% in the June quarter compared with 19.7% in the quarter ended March 2016.
It has underperformed the market by falling 13.6% from its recent high of Rs 574 touched on July 13, 2016, as compared to a marginal 0.07% rise in the S&P BSE Sensex.
Post April-June (Q1FY17) quarter results, on July 19, the stock is down 10% against 0.17% rise in the benchmark index.
Wipro’s IT services margin narrowed to 17.8% in the June quarter compared with 19.7% in the quarter ended March 2016.
Management guided for 0-1% quarter-on-quarter (qoq) growth for IT Services in Q2FY17, and a change of -1.2% to 0% qoq on June 30, 2016 exchange rates.
According to analysts at Motilal Oswal Securities, portfolio issues and lack of growth among top clients has been leading to subpar organic growth for Wipro.
“Although Digital has been picking up for the company, restructuring of the India & Middle East (ME) business will affect near-term growth, and mining efforts too may take some time before yielding results,” the brokerage firm said in result update.
“The guidance for Q2 indicates softest guidance ever. The soft guidance was attributed to restructuring in India & ME, uncertainty due to Brexit, and slow ramp-up. We believe continued patchy performance in terms of client mining, with sustained weakness in energy verticals, and challenges in BFS (especially in Europe) would drag the performance in FY17,” analysts at IDFC Securities said in recent report.
According to analysts at Motilal Oswal Securities, portfolio issues and lack of growth among top clients has been leading to subpar organic growth for Wipro.
“Although Digital has been picking up for the company, restructuring of the India & Middle East (ME) business will affect near-term growth, and mining efforts too may take some time before yielding results,” the brokerage firm said in result update.
“The guidance for Q2 indicates softest guidance ever. The soft guidance was attributed to restructuring in India & ME, uncertainty due to Brexit, and slow ramp-up. We believe continued patchy performance in terms of client mining, with sustained weakness in energy verticals, and challenges in BFS (especially in Europe) would drag the performance in FY17,” analysts at IDFC Securities said in recent report.