Wipro share fell over 5% in early trade after Q3 earnings of the IT firm failed to meet market expectations. Wipro stock touched an intraday low of Rs 653.4, falling 5.49% against the previous close of Rs 691.35 on BSE. The large cap share, which was the top Sensex loser, opened with a loss of 4.23% at Rs 662.10 today.
Wipro share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
The IT share has gained 43% in one year and lost 8.28% since the beginning of this year. Total 7.19 lakh shares of the firm changed hands amounting to a turnover of Rs 50.71 crore on BSE. Market cap of Wipro fell to Rs 3.59 lakh crore.
Wipro’s net profit came at Rs 2,969 crore in Q3 against Rs 2,968 crore in the corresponding period of the previous year. On a sequential basis, the net profit was up 1.3 per cent. For the March 2022 quarter, the company expects revenue from the IT services business to be in the range of $2,692 million to $2,745 million, translating into a sequential growth of 2-4 per cent.
Wipro Q3 results: Net profit at Rs 2,969 cr, board approves interim dividend of Re 1
The revenue from operations grew 29.6 per cent to Rs 20,313.6 crore from Rs 15,670 crore in the quarter ended December 2020. Revenue rose 3.2 per cent on a sequential basis.
Motilal Oswal has maintained its neutral call for the Wipro share post Q3 earnings.
“Wipro reported 3QFY22 IT Services revenue of $2.64b (3.0% QoQ CC), missing our estimate by 70 bps. The performance of verticals in 3Q was mixed, with strong QoQ growth in BFS and Consumer, while ENU and Tech were weak.
We lower our FY22-24E EPS estimate by 1% to factor in the miss on the growth front. We maintain our neutral stance as we view the current valuation as fair. Our target price implies 26x FY24E EPS,” the financial services firm said.
Piyush Pandey, Lead Analyst – Institutional Equities, YES Securities said, “Both revenue and EBIT margin came slightly below expectations. The firm reported a revenue of Rs 203.1 bn( up 3.3% QoQ in INR terms- below expectations). IT services revenue grew 2.3% QoQ in dollar terms to $2.64bn. The revenue growth was led by strong performance in BFSI snd consumer verticals.
EBIT margin was down 37 bos QoQ to 16.9%, mainly led by higher employee cost (cost of revenue) that grew 4.2% sequentially. We currently have ADD rating on the stock.”