Wipro dips on lower than expected Q4 results

The stock dipped 5.5% to Rs 568 on the BSE in early morning trade.

Wipro has dipped 5.5% to Rs 568 on the BSE in early morning trade after the company reported a flat consolidated net profit at Rs 2,235 crore against average analyst’s estimate of Rs 2,354 crore for the quarter ended March 2016 (Q4FY16). Consolidated revenues grew 6% at Rs 13,742 crore on sequential basis.

The company’s IT services posted revenues of US$ 1,882 million, a sequential increase of 2.4%. On Constant Currency (CC) terms the company posted a QoQ growth of 2.7% at US$ 1887.6 million. This was against the guidance of US$ 1,875 million to US$ 1,912 million for Q4FY2016.

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For guidance in Q1FY2017 (April-June), the company is expected to have IT services revenues in the range of US$ 1,901 million- US$ 1,939 million, posting a QoQ growth of 1.0-3.0%.

The board also approved a buyback proposal for purchase by the company of up to 40 million shares at a price of Rs 625 per equity share aggregating up to Rs 2,500 crore.

At 09:33 am, the stock was down 5% at Rs 571 on the BSE as compared to 0.78% rise in S&P BSE Sensex. A combined 1.38 million shares changed hands on the counter on the BSE and NSE so far.