Wipro fell 4.17% to Rs 554.65 at 11:08 IST on BSE after three foreign brokerages reportedly slashed the target price of the company perturbed by marginal rise in its Q4 net profit and low guidance.
Meanwhile, the S&P BSE Sensex was up 96.30 points or 0.35% at 27,772.34.
On BSE, so far 1.75 lakh shares were traded in the counter as against average daily volume of 1.18 lakh shares in the past one quarter.
The stock hit a high of Rs 563 and a low of Rs 552.65 so far during the day. The stock had hit a 52-week low of Rs 475.35 on 19 May 2014. The stock had hit a 52-week high of Rs 676.90 on 11 March 2015.
The stock had underperformed the market over the past one month till 21 April 2015, declining 11.21% compared with the Sensex's 2.07% fall. The scrip had, however, outperformed the market in past one quarter, sliding 1.49% as against Sensex's 4.2% fall.
The large-cap company has equity capital of Rs 493.81 crore. Face value per share is Rs 2.
Wipro's consolidated net profit rose 2% to Rs 2270 crore on 4% growth in total revenue to Rs 12140 crore in Q4 March 2015 over Q4 March 2014. The result hit the market after market hours yesterday, 21 April 2015. The results are as per International Financial Reporting Standards (IFRS).
According to reports, a foreign brokerage has cut its target price for Wipro, maintaining an underperform rating. The brokerage said that persistent poor top 10 account mining, headwinds in energy, telecom and BFS verticals are likely to keep earnings growth prospects uninspiring.
Another foreign brokerage has also reduced the target price for Wipro on growth concerns.
Meanwhile, another prominent brokerage has maintained a sell rating on Wipro citing concerns about weakness in application, development and maintenance (ADM) verticals and declining contribution from top 10 clients are yet to be addressed.
Wipro's IT Services segment revenue in rupee terms rose 6% to Rs 11240 crore in Q4 March 2015 over Q4 March 2014.
IT Services revenue rose 3.2% to $1.774 billion in Q4 March 2015 over Q4 March 2014. Non-GAAP constant currency IT Services revenue in dollar terms rose 1.2% to $1.817 billion, within the company's earlier guidance range of $1.814 billion to $1.850 billion.
Wipro expects its revenue from IT services business at between $1.765 billion to $1.793 billion in Q1 June 2015.
Commenting on the company's financial performance, Wipro's Chief Executive Officer and member of Wipro's board T K Kurien said that the company continues to execute on its strategy and have achieved improved customer satisfaction through better articulated solutions and improved delivery. The company is well-positioned to take advantage of the opportunities in the market, while tackling headwinds in certain areas, Kurien said. Wipro sees digital, open source and artificial intelligence as key levers for driving business change and reshaping the delivery model for the future, Kurien added.
Jatin Dalal, Chief Financial Officer of Wipro said that the company continues to maintain its focus on operational improvements and productiviy enhancements. This has resulted in margin expansion despite adverse cross-currency movements, Dalal said.
Meanwhile, Wipro yesterday, 21 April 2015 announced the appointment of Rishad Premji to its board of directors effective 1 May 2015. Rishad Premji joined Wipro in 2007 and has played a critical role in defining the company's strategy and driving its mergers and acquisitions function, Wipro said in a statement. Rishad will continue to run strategy and mergers & acquisitions in addition to his new responsibilities overseeing the Technology Office, Investor and Government Relations, and Wipro Ventures, the company said in a statement.
Wipro is a leading information technology, consulting and business process services company that delivers solutions to enable its clients do business better.
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