Wipro Shares Fall 4% As Results Lag Estimates

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Shares in Wipro fell 4.25 per cent, as the quarterly numbers lagged estimates and the commentary company's commentary and guidance remained uninspiring.

Wipro Shares Fall 4% As Results Lag Estimates
The shares of Wipro trading at Rs 526 on the NSE.

Gross Revenues at the company for the quarter ending June 30, 2016 were placed at Rs 136.0 billion ($2.0 billion) an increase of 11% YoY.

Net Income was Rs 20.5 billion ($304 million), a decrease of 6 per cent YoY. The IT Services Margins was 17.8 per cent for the quarter, as compared to 19.7 per cent for the quarter ended March 31, 2016.

The hit was largely on account of an increase in employee costs, including salaries for the said period.

Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board, said, "We have delivered Revenues in line with our guidance. Our early investments in areas such as our Digital practice and cognitive intelligence, notably Wipro HOLMES is positioning as the partner of choice for customers in the CHANGE side of their business.

We expect the trajectory of growth to build gradually over the course of the year as we drive execution on our strategic themes and make progress towards achieving a sustainable growth trajectory"

Jatin Dalal, Chief Financial Officer, said, "IT Services margins reflect the investments in rewarding our employees as well as the impact of consolidation of our acquisitions for the full quarter. We continue to expand the reach of our automation programs to harness efficiency gains."

GoodReturns.in

Read more about: wipro
Story first published: Wednesday, July 20, 2016, 11:20 [IST]
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