Shares of the IT major Wipro (NS:WIPR) tumbled on Thursday and hit a 52-week low after the company released its Sept quarter’s earnings results. At the time of writing, they were trading 7% lower at Rs 379.45 apiece and the stock was the worst performer on Nifty50.
The IT heavyweight missed multiple Street estimates, posting a 9.27% YoY fall in net profit for the September ending quarter, partially due to rising staff expenses. Its revenue from operations came at par with the estimates, rising 14.6% YoY to Rs 22,539.7 crore.
Wipro’s revenue growth guidance for the December 2022 quarter at 0.5-2% was much lower than the Street’s estimate of 1-3%. The IT major expects the revenue from the IT services business to range from $2,811-$2,853 million in the ongoing quarter.
The company’s margin for Q2 FY23 rose 16 basis points sequentially to 15.1% after absorbing the impact of salary increases and promotions, stated Jatin Dalal, CFO.
“Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our operating cash flows were robust and at 181% of our net income for the year,” he added.
Domestic brokerage Motilal Oswal (NS:MOFS) lowered its FY23/FY24 EPS estimate by 6%/2%, factoring in a growth miss and elevated risk.
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October 14, 2022
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