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Wipro tanks 7% on muted revenue guidance

Market-cap dips Rs 7,932 cr due to selling pressure

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Shares of today slumped more than 7%, wiping out Rs 7,932 crore from its market value, following a muted for the first quarter of 2012-13.

After plummeting by over 8% during the day, its shares finally ended at Rs 410.15 on the Bombay Stock Exchange (BSE), down 7.29%. On the National Stock Exchange, it closed down by 6.99% at Rs 411.10.

The scrip was the worst performer among the blue-chips on both and NSE. On volume front, 1.019 million shares of the company changed hands on the BSE, while more than 6 million shares were traded on the NSE.

"Wipro shares saw selling pressure on muted guidance for Q1 FY13. The company said its IT services revenues would be around $1.52-1.55 billion for April-June quarter, which is just 0.6% higher than Q4 FY12," Sharmila Joshi Head Equity Fairwealth Securities said.

Ashika Stock Brokers Research Head Paras Bothra said: "The numbers were not too great and on top of it the company forecast muted revenue growth was below street expectations and this led to heavy selling in the stock."

Wipro reported 7.7% increase in consolidated net profit at Rs 1,480.9 crore for the fourth quarter, 2011-12.

The company had posted a net profit of Rs 1,375.4 crore during the January-March quarter in 2010-11.

It said during the ongoing quarter (Q1, 2012-13), it expects revenues from IT services business to be in the range of $1,520 million to $1,550 million, assuming that exchange rates of the dollar will be at Rs 50.07.

Other frontline IT stocks such as TCS, Tech Mahindra, HCL Tech fell in the range of 0.5-1.9%.

In the broader market, the BSE benchmark Sensex ended at 17,151.29, down 56 points.

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