Wipro shares tank 7% on disappointing earnings

Shares of Wipro tumbled almost 7 per cent today after the company missed street expectations with over 6 per cent fall in net profit for the first quarter ended June and forecast that IT services sales would grow less than 1 per cent in July-September.
The stock after a weak opening further lost 6.98 per cent to Rs 511 on BSE.
At NSE, it went down by 5.68 per cent to Rs 518.
The stock was the worst performer among the bluechips on both Sensex and Nifty during the morning trade.
"For 1Q FY17 the company posted results below expectations on the net profit front," said Sarabjit Kour Nangra, VP Research IT, Angel Broking.

The company, which announced the disappointing set of numbers after markets hours yesterday, expects revenue from IT services to be USD 1,931-1,950 million for the September quarter, that is flat to 1 per cent sequential growth.
IT services revenues, which account for a dominant chunk of Wipro's business, grew 2.6 per cent sequentially to about USD 1,931 million for the June quarter, meeting the guidance of USD 1,901-1,939 million.
For the quarter ended June 2016, net profit stood at Rs 2,052 crore as against Rs 2,192 crore in the year-ago period. Its total income from operations rose almost 11 per cent to Rs 13,697.6 crore from Rs 12,370.6 crore in the previous year. Its IT services segment had a headcount of 1.73 lakh. Revenue from IT products stood at Rs 590 crore.