Wipro Q4 net profit up 7.7%, scrip dives 7.3% on muted revenue guidance
The guidance, which came with the announcement of a 7.7% rise in net profit in the March quarter, disappointed markets and left analysts wondering about the Azim Premji-led company’s near-term prospects. Wipro was the biggest loser in BSE’s IT index, which shed 1.48%.
The company attributed the muted guidance of -1% to 1% revenue growth to weaknesses in its India business and challenges in the telecom vertical. For the first quarter, Wipro expects $1,520-$1,550 million revenues from the IT services business, almost the same as $1536 million clocked in the fourth quarter.
Net profit for the January-March quarter touched R1,481 crore, while consolidated revenues of Wipro for the fourth quarter stood at R9,869 crore with an annual growth of 19%. Its mainstay IT services business reported a 21% growth to touch Rs 7,590 crore.
Wipro chairman Azim Premji said: “Overall macro environment continues to remain volatile while we have seen some signs of positivity in the last three months of the financial year. Customers, however, remain cautious.”
T K Kurien, CEO of the company’s IT business, said he is not too bothered about the environment and added that Wipro will meet Nasscom’s growth projections of 11-14%. “One cannot do much about the environment. What we can control is customer
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