The stocks of Wipro fell over 8 per cent in the Monday trading session due to ill-effect of its first quarter result reported on Friday.
IT player Wipro on Friday reported a consolidated net profit of Rs 3,003 crore for the quarter ended 30 June 2024, a 4.6 per cent increase over the Rs 2,870 crore posted in the same period last year.
Despite this positive growth in profit, the company's revenue from operations declined by 4 per cent to Rs 21,964 crore, down from Rs 22,831 crore in the corresponding quarter of the previous financial year.
Wipro stock traded at Rs 510 with 8.44 per cent loss in the morning session on the National Stock Exchange (NSE). Whereas, on the New York Stock Exchange (NYSE), Wipro ADR ended 11.6 per cent lower.
The reported net profit crossed market expectations, which had pegged the figure at Rs 2,993 crore. However, the revenue fell short of the estimated Rs 22,258 crore.
For the upcoming quarter ending 30 September 2024, Wipro provided guidance that its IT services business segment revenue will range between USD 2,600 million and USD 2,652 million, indicating a sequential growth forecast of between -1.0 per cent to +1.0 per cent in constant currency terms.
On a quarter-on-quarter (QoQ) basis, the company's gross revenue saw a slight decline of 1.1 per cent, dropping to Rs 22,208 crore from Rs 22,208 crore in the previous quarter.
The IT services segment reported revenue of USD 2,625.9 million, a decrease of 1.2 per cent compared to the last quarter and a 5.5 per cent decline year-on-year (YoY). In non-GAAP constant currency terms, the IT services revenue fell by 1.1 per cent quarter-on-quarter and 4.9 per cent YoY.
Large deal bookings were recorded at USD 1,154 million. The IT services operating margin for the quarter was 16.5 per cent, showing a slight improvement of 0.1 per cent from the previous quarter and 0.4 per cent YoY.
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