Wipro has surged nearly 5% to Rs 401 in early morning deals on BSE on the management's better-than-expected US dollar revenue guidance of US$ 1,620 million to 1,650 million for the second quarter ending September 30, 2013 (Q2 FY2014).
This guidance given by Wipro is better than the past several quarters, which translates into a qoq growth of 2-4% over June quarter and is above analyst expectations of 1.5-3%.
“This guidance indicates initial signs of stability in the company going ahead. Management indicted about pickup in large deal closures and robust order book which bodes well for growth in coming quarters. We believe that the restructuring initiatives have not yet started showing the expected results and will start reflecting in the financials of the company in due course,” says analyst at Angel Broking in a note.
Meanwhile, in rupee terms, Wipro’s net profit declined sequentially by 6.2% to Rs 1,623 crore for the first quarter ended June 30, 2013 (Q1 FY2014), while its EBITDA margin grew by 32bp qoq to 20.8%.
The stock opened at Rs 401 and hit a high of Rs 405 on BSE. A combined around one million shares changed hands on the counter on NSE and BSE at 0920 hours.
This guidance given by Wipro is better than the past several quarters, which translates into a qoq growth of 2-4% over June quarter and is above analyst expectations of 1.5-3%.
“This guidance indicates initial signs of stability in the company going ahead. Management indicted about pickup in large deal closures and robust order book which bodes well for growth in coming quarters. We believe that the restructuring initiatives have not yet started showing the expected results and will start reflecting in the financials of the company in due course,” says analyst at Angel Broking in a note.
Meanwhile, in rupee terms, Wipro’s net profit declined sequentially by 6.2% to Rs 1,623 crore for the first quarter ended June 30, 2013 (Q1 FY2014), while its EBITDA margin grew by 32bp qoq to 20.8%.
The stock opened at Rs 401 and hit a high of Rs 405 on BSE. A combined around one million shares changed hands on the counter on NSE and BSE at 0920 hours.
