Stock Market update: Wipro Ltd shares down by 5.75% post Q3 results

The shares of Wipro fell by 5.75% today in early trade post the announcement of Q3 results.

The share price of Wipro dropped by 5.75% today in early trade. The share price went down to Rs. 651 per equity share and representing a decrease of 5.75% at 11:33 AM IST. On 12 January Wipro announced its financial results report of the quarter ending December 2021 and reported a consolidated net profit of Rs. 2,969 crore.

As compared to the net profit in the previous quarter ending September 2021, which was estimated to be around Rs. 2,930.70 crore. The net profit in the quarter ending December in the previous year was Rs. 2968 crore. Therefore, representing a flat year growth.

However, the total income of Wipro in the quarter ending September 2021 stood at Rs. 20,173.60 crore as compared to Rs. 15,651.40 crore in the previous year in same period. The net revenue of Wipro for year 2021 stood at Rs. 64,325.60 crore as compared to Rs 63,862.60 crore in the year 2020. Therefore, representing a very little growth rate of 0.72%.

Both revenue and EBIT (earnings before interest and taxes) margin slightly below expectation. The revenue growth was led by strong performance in BFSI and consumer verticals. EBIT margin was down on a sequential basis mainly led by higher employee cost (cost of revenue) that grew sequentially. Deal booking remained strong,” said Piyush Pandey, Lead Analyst – Institutional Equities, Yes Securities.

Wipro expects revenue from the IT services business to be in the range of $2,692-$2,745 million in the fourth quarter of the current fiscal, which translates to a sequential growth of 2% to 4%. The company’s board has also declared an interim dividend of ₹1 per equity share.

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