Wipro slumps over 11%; m-cap dips Rs 7,712 cr post earnings
Shares of IT major Wipro Ltd today slumped over 11 per cent, wiping off Rs 7,712 crore from its market cap after lower-than-expected results on revenue as well as on margin front.
After making a weak opening, shares of the company further lost 11 per cent to Rs 328 on the BSE, in an overall strong stock market.
The stock was the top loser among the 30-Sensex components in the morning trade.
At NSE, the scrip tanked 11.25 per cent to Rs 327.50.
Led by the steep loss in the share price, Wipro's market value tumbled Rs 7,712 crore to Rs 83,084 crore.
"For 4Q FY13, Wipro came out with lower-than-expected set of results on revenue as well on margin front. For Q1 FY14, the management's USD revenue guidance is also below our and street expectations as Q1 traditionally is a strong quarter for IT companies," Angel Broking said in a report.
Wipro had on Friday reported 16.73 per cent increase in net profit to Rs 1,728.7 crore for the fourth quarter ended March 31, 2013.
The country's third largest software services firm's net profit stood at Rs 1,480.9 crore in the year-ago period.
The consolidated total income of the company rose by 13 per cent to Rs 9,613.1 crore for the January-March quarter in 2013-13 fiscal against Rs 8,506.1 crore in the same period of 2011-12 fiscal.
The company has said it expects revenues from its IT services business to be in the range of USD 1.575-1.610 billion for the first quarter (April-June) of the current fiscal.
In the broader market, the BSE benchmark Sensex was trading at 19,106.97, up 90.51 points at 1130 hrs