Wipro shares recover early losses

Shares of IT major Wipro on Thursday reversed its early losses and closed over 1 per cent higher.

The scrip, which had plunged 6 per cent to Rs 175.30 during the day, on the BSE later bounced back and closed at Rs 187.80, up 0.67 per cent.

On the NSE, shares of the company closed at Rs 189, a gain of 1.31 after falling 3.51 per cent to Rs 180 during the day.

Shares of Wipro had fallen in the morning trade after the company posted 6 per cent decline in March quarter net profit that was battered by the fallout of Covid-19.

In the broader market, the equity benchmark Sensex also rose nearly 223 points.

"Wipro's results were weak along expected lines. The company desisted from its usual practice of providing quarterly revenue guidance," Emkay Global Financial Services said in a report.

The IT major did not provide revenue forecast for the current quarter due to business uncertainty caused by the Covid-19 pandemic.

The company, which is the first among its peers to announce financial numbers for the quarter, said it will resume providing revenue guidance after it sees "increased certainty" on demand and supply side factors.

Wipro, which posted a consolidated net profit of Rs 2,345.2 crore for March quarter compared to Rs 2,493.9 crore in the year-ago period, said it expects revenue in June quarter to decline that will put a huge pressure on margins.

The Bengaluru-based company's revenue increased 4.6 per cent to Rs 15,711 crore in January-March as against Rs 15,006.3 crore in the year-ago period.