Wipro has dipped 5% at Rs 356, extending its Wednesday’s 2% fall, on reports that General Motors, the world’s second largest auto maker, which outsources 90% of its IT requirement, is planning to slash this to merely 10% over the next three years.
Meanwhile, the country’s third-largest IT exporter will announce results for the first quarter ended June 30, 2012 on Tuesday, July 24, 2012.
According to Edelweiss Research, Wipro will post flat revenue growth (in USD), in line with guidance of -1 to 1%, as cross currency impacts growth. In rupee terms, the company will post single digit quarter-on-quarter growth in revenues and net profit.
The profit margins to improve due to sharp fall in Indian Rupee and limited impact of wage hike (just 1 month) in the current quarter. Q2FY13 revenue guidance expected to be at 3-5%, the report suggests.
The stock opened at Rs 368, is currently trading at day’s low level on the National Stock Exchange. A combined 2.03 million shares have changed hands on the counter till early noon deals on both the exchanges.
