Wipro Shares Dip 1% After Muted Outlook

3 years ago admin Comments Off on Wipro Shares Dip 1% After Muted Outlook

Shares of Wipro ended nearly 1% lower as the company offered a muted outlook while announcing its March quarter earnings.

Read more: Nokia 3310 Selling for Rs 3,899 Online, Shipping Starts Soon

The stock, which opened higher, reversed gains and fell by 0.80% to end at Rs 490.60 on BSE. Intra-day, it had declined 1.12% to Rs 489.

On NSE, shares of the company went down by 0.69% to close at Rs 490.85.

Read more: In Pictures: Apple Dubai Mall With Huge 186-Foot Curved Glass to Open on April 27

Its market valuation fell by Rs 899.73 crore to Rs 1,19,320.27 crore.

On the volume front, 12 lakh shares of the company were traded on BSE and over one crore shares changed hands at NSE during the day.

Read more: Flipkart Apple Days: iPhone 6 for Rs 25,999, iPhone 7 for Rs 47,999 and More

“Wipro’s Q4 performance was encouraging, but subdued guidance for Q1 FY18 was a spoiler,” HDFC securities said in a report.

Wipro has registered a marginal rise in net profit for the March quarter and offered a muted outlook, but sought to cheer investors by announcing a bonus issue and a likely share buyback.

Watch video

India’s third-largest software services firm said it will issue bonus shares within the next two months, a move aimed at encouraging participation of small investors, enhancing liquidity and expanding retail shareholder base.

However, market watchers were disappointed with the outlook of a flat sequential growth for the June quarter.

Wipro registered a negligible rise in the consolidated profit at Rs 2,267 crore for the fourth quarter ended March 2017. The total income rose over 5% to Rs 15,033.8 crore in the said quarter, compared to the year-ago period.

The IT firm attributed the muted guidance to softness in healthcare and retail business. Wipro expects revenues from its IT services — its mainstay — to be in the range of $1,915-1,955 million for the April-June 2017 quarter.

This is almost similar to March quarter IT services revenue that stood at $1,954.6 million. The dollar revenue was 3.9% higher than the year-ago period.