Wipro falls 8% post Q2 nos, revenue growth concerns

Moneycontrol Bureau

Shares of Wipro fell 8 percent intraday on Wednesday after reporting a dollar revenue growth in-line with estimates and beating margin forecast. However, the stock has seen a good rally in last few days on rupee depreciation and in anticipation of strong results.

Ankita Somani, Analyst at Angel Broking points out Wipro has been a laggard in terms of revenue growth among the top four IT companies.

Harit Shah, Senior Research Analyst, Nirmal Bang Institutional Equities feel Wipro's third quarter may be pressurised. "Our third quarter strictly tends to be a bit lower and given the furloughs and shutdowns that they tend to see towards the year end, so in that respect you may see it at best being at current levels or maybe slightly lower. I do not think there is any significant scope for expansion from current levels," he said in an interview to CNBC-TV18.

Wipro's consolidated net profit grew 28 percent year-on-year to Rs 1,932 crore and revenues jumped 19 percent on yearly basis to Rs 10,992 crore for the quarter ended September 2013. It crossed revenues Rs 10,000 crore for the first time in a quarter.

Revenues from its IT services increased 12.67 percent sequentially (20 percent year-on-year) to Rs 10,068 crore in the quarter ended September 2013.

Dollar revenues rose 2.7 percent quarter-on-quarter (5.9 percent on yearly basis) to USD 1631.1 million during second quarter, which was within its guidance of USD 1,620-1,650 million.

At 10:28 hrs, the stock was quoting at Rs 487.00, down Rs 27.90, or 5.42 percent on the BSE.

(Posted by Nasrin Sultana)