Shares in Wipro slump 5 per cent as guidance fails to impress

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 Shares in Wipro slump 5 per cent as guidance fails to impress
Wipro: Quotes, News
BSE 472.40BSE Quote8.85 (1.87%)
NSE 471.55NSE Quote9.85 (2.09%)
Shares in Wipro fell 5 per cent after the company's guidance failed to impress the markets. Wipro said that it expects June-quarter IT services revenues to be in the range of $1.72 billion to $1.76 billion.

The company said that it expected first-quarter revenues to grow in the -0.3 to 2 per cent range largely on account of seasonal weakness in its India business and retail vertical.

Analysts said Wipro's Q1 guidance was "disappointing" as some of its rivals like Tata Consultancy Services and HCL Technologies expect higher sales growth in the first quarter.

Analysts were also worried that its margins could take a hit after plans to give 6-8 per cent wage hikes to employees in off site work locations and two-three per cent wage hike to on site employees. The stock was last trading at Rs 555, down 5.14 per cent on the National Stock Exchange. Other IT stocks were little unchanged over last Thursday's close.

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