Wipro drops on weak Q1 results

Wipro dropped 4.61% to Rs 524.05 at 9:30 IST on BSE after consolidated net profit attributable to equity holders fell 6.38% to Rs 2051.80 crore in Q1 June 2016 over Q1 June 2015.

The company announced the first quarter results after trading hours yesterday, 19 July 2016.

Meanwhile, the S&P BSE Sensex was up 110.80 points or 0.4% at 27,892.65.

On BSE, so far 92,091 shares were traded in the counter as against average daily volume of 2.4 lakh shares in the past one quarter. The stock hit a high of Rs 527.50 and a low of Rs 511 so far during the day.

Wipro's gross revenue rose 11.12% to Rs 13599.20 crore in Q1 June 2016 over Q1 June 2015. The results are as per International Financial Reporting Standards (IFRS). Revenue from IT services business rose 2.6% to $1,930.8 million in Q1 June 2016 over Q4 March 2016. Non-GAAP constant currency IT services segment revenue in dollar terms grew 2% sequentially and 9.5% on year-on-year basis.

Wipro expects a muted 0.01% to 0.99% growth in revenue from IT services business at between $1,931 million to $1,950 million in Q2 September 2016 over Q1 June 2016. Wipro's management expects the trajectory of growth to build gradually over the course of the year based on execution with regard to the company's strategic themes and as the company makes progress towards achieving a sustainable growth trajectory.

Meanwhile, Wipro and Viteos Group have cancelled the definitive agreement signed in December 2015 whereby Wipro had agreed to acquire Viteos Group. Wipro said in a statement that both the parties have decided not to proceed with the deal due to inordinate delays in completion of closing conditions that exceeded the target closing date under the terms of the agreement.

Wipro is one of the leading global information technology, consulting and outsourcing companies

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