Wipro m-cap down Rs 6,628 cr as Q1 earnings disappoint

Wipro shares fell nearly 5 per cent after the company's June quarter earnings missed market expectations.

Shares of the IT major settled 4.66 per cent lower at Rs 549.90 on the Bombay Stock Exchange. During the day, it plunged 8.46 per cent to Rs 528. At the National Stock Exchange, the IT firm's scrip tanked 4.41 per cent to Rs 551.40.

Led by the dip in the stock, Wipro's market value dropped Rs 6,628.36 crore to Rs 1,35,681.64 crore.

"Wipro's June 2014 quarter results missed the 'already modest' expectations," said Manik Taneja, Research Analyst at Emkay Global Financial Services.

The IT company had on Thursday reported 29.5 per cent growth in consolidated net profit for April-June period, helped by large deals in application and infrastructure space as well as return of discretionary spending in the North American market.

"The firm had posted a net profit of Rs 1,623.3 crore in the year-ago period," it said in a BSE filing.

Consolidated net sales of the country's third-largest IT services firm rose 15.5 per cent to Rs 11,245.5 crore in April-June quarter this fiscal from Rs 9,733.2 crore in the same quarter of 2013-14.

In US dollars, Wipro reported a net profit of $351 million and revenue of $1.9 billion. Revenue from IT services stood at $1.74 billion, a quarter-on-quarter increase of 1.2 per cent and year-on-year increase of 9.6 per cent.

Wipro had guided this to be in the range of $1.715 billion and $1.755 billion.