Wipro shares tank 8%, m-cap slips Rs 8,364 cr after Q3 results

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Wipro's IT business volumes, or the billable hours, fell 1 percent from the previous quarter. (Reuters) Wipro's IT business volumes, or the billable hours, fell 1 percent from the previous quarter. (Reuters)
SummaryWipro today reported 18 per cent rise in its consolidated net profit.

Shares of software services firm Wipro today tanked 8 per cent, eroding Rs 8,364 crore from its market value, even as it reported 18 per cent rise in consolidated net profit for the quarter ended December 31.

Analysts said that despite a spurt in profit, negative volume growth and its guidance disappointed investors.

After falling over 8 per cent during the day, shares of the company finally ended at Rs 397.15, down 7.88 per cent from its previous close on the BSE.

At NSE, the stock lost 8.06 per cent to close at Rs 396.

The scrip was the top loser among the bluechip stocks on both the key market indices - Sensex and Nifty.

In the process, the company's market capitalisation (m-cap) dropped Rs 8,364 crore to Rs 97,796 crore.

"Wipro's Q3 FY13 results were largely in-line with our and street estimates, except dollar revenue. Despite in-line performance, negative volume growth and below expectation guidance remains a concern," Daljeet Kohli, Head Research IndiaNivesh Securities said.

According to Prabhudas Lilladher report: "Wipro reported results soft on revenue but stronger on margin than expectation. Guidance looks softer than what consensus might be expecting."

Country's third largest software services firm Wipro today reported 18 per cent rise in its Q3, FY'13 consolidated net profit to Rs 1,716.4 crore. It had posted net profit of Rs 1,456.4 crore in the year-ago period, the Bangalore-based firm said in a filing to the BSE.

Consolidated total income of the IT major was up by 10 per cent at Rs 10,989.1 crore for the October-December quarter in the current fiscal, against Rs 9,965.1 crore in the same period of 2011-12 fiscal.

Wipro expects its revenues from IT services business to be in the range of USD 1.585 billion to USD 1.625 billion for the quarter ended March 31, 2013.

In the broader market, BSE 30-stock index, Sensex, ended at 20,039.04, up 75.01 points.

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