Wipro tumbles after Q1 results

Wipro fell 5.09% to Rs 268.65 at 9:18 IST on BSE after consolidated net profit rose 16.27% to Rs 2093.80 crore on 1.52% increase in net sales to Rs 13977.70 crore in Q1 June 2018 over Q4 March 2018.

The result was announced after market hours on Friday, 20 July 2018.

Meanwhile, the S&P BSE Sensex was up 80.90 points, or 0.22% to 36,577.27.

On the BSE, 48,000 shares were traded in the counter so far compared with average daily volumes of 2.87 lakh shares in the past two weeks. The stock had hit a high of Rs 288 and a low of Rs 263.90 so far during the day. The stock hit a 52-week high of Rs 334.75 on 16 January 2018. The stock hit a 52-week low of Rs 253.50 on 6 June 2018.

Wipro said its IT services segment revenue rose 2.2% to Rs 13700 crore in Q1 June 2018 over Q4 March 2018. Wipro expects revenue from its IT services business to be in the range of $2,009 million to $2,049 million. This translates to a sequential growth of 0.3% to 2.3%, excluding the impact of the divestment of its hosted data center services business which concluded in the quarter ended 30 June 2018.

Abidali Z. Neemuchwala, CEO and Member of the Board said that the company has seen pickup in spending in the developed markets, particularly in North America and BFSI. Wipro's investments in Digital continue to help it build differentiation in key industry segments, which is resulting in a consistent improvement in its client metrics. The company has had a good quarter of order bookings and the firm is moving in the right direction.

Jatin Dalal, Chief Financial Officer said that the company successfully concluded the sale of its hosted data center business in the quarter. The company continues to improve its operating metrics and generated strong operating cash flows at 136% of its net Income during the quarter.

Wipro is a leading global information technology, consulting and business process services company.

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