Shares of Wipro plunged as much as 7 per cent in the early trade on Wednesday after the company reported 8.19 per cent fall in its net profit at Rs 2,059 crore for the quarter ended June 2016 against Rs 2,235 crore in the sequential quarter ended March 31, 2016. The IT major has given a revenue guidance of $1,931 million to $1,950 million for the quarter ending September 30, 2016.

At 9.36 am, shares of Wipro were trading 4.76 per cent down at Rs 523.25. The scrip opened at Rs 511 and has touched a high and low of Rs 527.50 and Rs 511, respectively, in trade so far.

Revenue of Wipro fell marginally by 0.24 per cent to Rs 13,599.20 crore for the quarter under review from Rs 13,632.40 crore in the sequential quarter ended March 31, 2016.

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Sharekhan in a research report said, “Wipro’s performance continues to lag its peers. Given the lower-than-anticipated growth in Q2FY2017, it will be another lackluster year in terms of growth. We continue to remain cautious on Wipro’s growth due to its exposure to certain troubled verticals. Business restructuring could further impact the company’s growth at least in 2016-17. We have revised down our estimates for 2016-17 and 2017-18 by 7.3 per cent and 7 per cent, respectively.” The brokerage house has revised Wipro target price to Rs 590 with ‘Hold’ rating post Q1 results.

Last week, Infosys also lowered its dollar guidance for the ongoing financial year 2016-17 to 10-11.5 per cent from 11.8-13.8 per cent (projected in April) due to currency volatility and headwinds. Infosys shares were trading 0.52 per cent down at Rs 1,080.65 at the same time (9.36 am).

Consolidated net profit of Infosys dipped by 4.48 per cent quarter-on-quarter at Rs 3,436 crore against Rs 3,597 crore in the previous quarter ended March 31, 2016.

After Q1 results of Infosys, Nirmal Bang Institutional Equities said, “We have cut our revenue and earnings per share (EPS) estimates and retained ‘Sell’ rating on Infosys with a March 2017 target price of Rs 988. Our ‘Sell’ rating on the IT company is based on the view that the sector’s revenue growth and P/E multiple are likely to contract in the base case scenario that we have assumed for US economy in 2016 and 2017.”

Another IT major Tata Consultancy Services (TCS) reports 9.44 per cent quarter-on-quarter growth for the quarter ended June 30, 2016 against Rs 5,773 crore in the sequential quarter ended March 31, 2016. Gross sales of TCS grew 14.17 per cent quarter-on-quarter to Rs 29,305 crore in the quarter under review. The share price of the company dipped 2.33 per cent in the past three trading session. The scrip slid to Rs 2,461.55 on July 19 from Rs 2,520.30 on July 14.

According to Prabhudas Lilladher, TCS Q1FY17 revenues stood below expectation, while margins were above expectations. The brokerage firm believes TCS will face more challenges in the short term due to its higher exposure to UK and Europe.

Brokerage firm Religare Institutional Research has ‘Sell’ rating on TCS with March 2017 target price of Rs 2,300.