Shares of Wipro Ltd. fell the most in over four years to the lowest in nearly a month on Monday after it provided a bleak earnings outlook for the second quarter.
Wipro expects its revenue to rise either up to 1% or decline 1% in the July–September period due to the weak demand environment, NDTV Profit reported.
In the April–June period, the Bengaluru based IT service providers' revenue fell 1% sequentially to Rs 21,964 crore.
Wipro Q1 FY25 Earnings Highlights (Consolidated, QoQ)
Revenue down 1% to Rs 21,964 crore versus Rs 22,208 crore (Bloomberg estimate: 22,237 crore)
EBIT up 1.8% to Rs 3,625 crore versus Rs 3,560 crore (Estimate: Rs 3,543 crore)
EBIT margin at 16.5% versus 16% (Estimate: 15.94%)
Net profit up 6.3% to Rs 3,037 crore versus Rs 2,858 crore (Estimate: Rs 2,931 crore)
Also Read: Wipro Q1 Results Review - Muted Quarter, But The Uptick In Consulting A Positive: Motilal Oswal
On the NSE, Wipro's stock declined as much as 7.89% to Rs 513.25 apiece, the lowest since June 28. The intraday fall is the most since Feb. 23, 2020. It was trading 7.55% lower at Rs 515.15 per share, compared to a 0.14% decline in the benchmark Nifty at 9:42 a.m.
The share price has gained 26.84% in the last 12 months and 8.57% on a year-to-date basis. The total traded volume so far in the day stood at 1 time its 30-day average. The relative strength index was at 45.13.
Twenty-four out of the 44 analysts tracking the company have a 'sell' rating on the stock, 12 recommend 'hold' and eight suggest 'buy', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 3.8%.
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