Wipro hit a new 52-week high today at Rs.589 but from that level, profit booking pushed the stock down to Rs.568.25 and is now trading in the red at Rs.573 levels.

The company’s Q1FY22 consolidated net profit rose 9% (QoQ) to Rs.3243 crore while YoY, it was up 36%. The market reacted with a high as in the ensuing Conference Call with analysts, the management said that this was the best ever quarterly results as the company reported and Q1 saw Wipro report the highest organic sequential growth in 38 quarters, surpassing its revenue guidance.

Consolidated EBIT margin was at 17.2%, down 330 bps sequentially and this was due to integration of low margin Capco business and several senior leadership hires during the quarter.

The company's management guided IT services revenue to be in the range of $2,535-2,583 million in Q2FY22, a 5-7% sequential growth. It also maintained its EBIT margin guidance of 17-17.5%.

Following these numbers, after the initial euphoria settled, profit booking came in as analysts put out reports cautioning reading too much into these earnings as they do not see these numbers being as broad based as TCS and Infosys.