Wipro remains the top loser on the BSE since morning. It is currently down 5.5% at Rs.545.50, with an intra day low at Rs.528, the rate at which it opened today and later recouped. Volumes are up almost 3 times.

The stock has tanked after the company posted disappointing numbers for Q1FY15. It posted a consolidated net profit at Rs.2118 crore, down over 5% (QoQ) and revenue also declined 4% at Rs.11,246 crore. The market had expected a fall but it was more spooked by the fall in the margins – operating margin fell from 24.5% to 22.8% (QoQ) and this can be blamed fully on the wage hike given to its 1.47 lakh employees. In dollar terms, its IT service revenue rose 1.2% at $1740 million.

The company, for Q2 ended 30th Sept 2014 has given a guidance - expects IT services revenues to be around $1,770 million to $1,810 million, which is a growth of 1.7 to 4% on a sequential basis. Many analysts have stated this growth of 4% is aspirational and have serious doubts, at the moment, about the company being able to achieve it.

The company’s optimism probably stems from the three big ticket wins it had during current Q1 – a $1.2 billion contract from Atco and it also won the Canadian IT subsidiary for Rs.1175 crore. The company is expecting revenues from these to start accruing from current Q2.