Why Wipro Shares are Falling:
After Reporting Lower Q2 Profit
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.
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.
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
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
This translates to a sequential growth of
0.5% to 2%.
We lower our FY23/FY24 EPS estimate by 6%/2% to factor in a miss on growth and elevated risk
We maintain our Neutral stance as we view the current valuation as fair," said domestic brokerage and research firm Motilal Oswal.
The brokerage maintained its Neutral stance on Wipro shares with a target price of ₹380.
Over the last eight quarters, Wipro’s margins have fallen by over 600 bps, primarily due to acquisitions like Capco and Rizing.