Why Wipro Shares are Falling: Falls 6% After Reporting Lower Q2 Profit

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Shares of Wipro Ltd plunged more than 6% to hit a 52-week low of ₹383 apiece on the BSE in Thursday's early trading session.

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After the IT services major reported an over 9% drop in its September quarter net profit to ₹2,659 crore, weighed down by rising staff expenses and lower non-US earnings.

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The Bengaluru-based company's revenue from operations stood at ₹22,539 crore, up 14.6% growth over ₹19,667 crore in the previous year

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Wipro in its outlook for the December quarter said it expects revenue from our IT services business to be in the range of $2,811 million to $2,853 million

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This translates to a sequential growth of 0.5% to 2%.

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We lower our FY23/FY24 EPS estimate by 6%/2% to factor in a miss on growth and elevated risk

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We maintain our Neutral stance as we view the current valuation as fair," said domestic brokerage and research firm Motilal Oswal.

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The brokerage maintained its Neutral stance on Wipro shares with a target price of ₹380.

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Over the last eight quarters, Wipro’s margins have fallen by over 600 bps, primarily due to acquisitions like Capco and Rizing.

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