Shares of WiproBSE -3.60 % plunged over 4 per cent as the market opened for Samvat 2071 muhurat trading as the Street was disappointed with its second quarter results.
The company reported a consolidated net profit of Rs 2,085 crore during July-September quarter, down 0.9 per cent, against Rs 2,103.2 crore in previous quarter.
Sales in during the quarter increased to Rs 11,816 crore, up 12.4 per cent, from Rs 10,508.3 crore, QoQ.
The company sees Q3 IT services revenues at $1,808-1,842 million. Q2 EBIT margins stood at 22 per cent vs 22.8 per cent, QoQ.
“Wipro reported weaker than expected performance for Q2FY15, with revenue and margin missing the expectation. Moreover, the guidance was softer than PLe/Consensus expectation. Management is still confident of improving growth momentum in H2FY15 on the back of large deal wins. Moreover, return of discretionary spend in the US and Outsourcing penetration in Continental Europe makes demand outlook healthier,” said Prabhudas Lilladher report.
The brokerage has revised its target price to Rs 650.
“We see improvement in the win rate to drive revenue momentum in CY15, along with available margin levers that would accelerate earnings momentum. However, we see near term weakness in stock due to weaker than expected guidance,” the report added.
At 06:30 p.m.; the stock was at Rs 557.60, down 4.14 per cent, on the BSE. It fell 4.7 per cent intraday to touch a low of Rs 554.30.