Wipro shares up 3% on Q2 results

IT major Wipro's scrip rose over 3 per cent today after the company reported 23.8 per cent jump in consolidated net profit for the second quarter ended September 30 and its move to demerge the non-IT business into a separate company.

Following the robust earnings, Wipro share gained 3.19 per cent to Rs 372.95 on the BSE.
At NSE, the scrip moved up by 3.23 per cent to Rs 372.95.

"Results were in-line with street expectations, but the stock is moving up on the back of demerger of its non-IT businesses," CNI Research CMD Kishor Ostwal said.

The country's third largest software firm said yesterday that it will demerge non-IT businesses like Consumer Care & Lighting into a new company, a move which will allow it to focus exclusively on information technology.

This morning, Wipro reported a jump of 23.8 per cent in consolidated net profit to Rs 1,610.6 crore for the second quarter, July-September, of the current fiscal.
Last year, the software major had posted a net profit of Rs 1,300.9 crore in the second quarter, as per international accounting standards.

"We expect revenues from our IT Services business to be in the range of USD 1,560-USD 1,590 million for the quarter ending December 31, 2012," Wipro said.

"Wipro's 2Q FY13 results are largely in-line with estimates. Wipro's guidance for IT services for 3Q FY13 looks decent after continuous disappointments since last couple of quarters in terms of guidance," Angel Broking said in a report.

Total income from operations during the reporting quarter was Rs 10,620.3 crore, against Rs 9,064.5 crore in the July-September period of last fiscal -- up 17.16 per cent.

In the broader market, the BSE benchmark Sensex was trading at 18,726.47, up 164.77 points at 1045 hrs.

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