Wipro hits a new low

Wipro has been battered down today because its Q2FY23 earnings came in much below estimates of various fund houses. The analysts remain concerned about the company’s growth guidance and margin pressure.

Its revenue rose 5% (QoQ) to Rs.22,540 crore while net profit was up 4% at Rs.2659 crore. Dollar revenues for the IT Services came at $2,797.70 million, up 2.3%.  The company said that it has started to see a slowdown in the Consulting business though this was partially compensated by cross-selling in Services.

The company’s EBIT was up 2% at Rs.3145 crore while margins fell 38 bps to 13.95%.

Its top 5 clients grew 19% (YoY), and the top 10 clients expanded 17% (YoY) in constant currency terms. Its large deal bookings rose 42% in H1'23 while overall order book in Total Contract Value (TCV) terms grew 24%.

The company expects revenue from its IT services business to be in the range of $2,811-2,853 million, up by a mere 0.5 to 2% sequentially.

The stock is currently top loser on the BSE; from its close of Rs.407.75, the stock hit a new 52-week low today at Rs.378.30.