India's Wipro shares slump 11% on weak forecast

Apr 22, 2013

Shares of Wipro, India's third-largest software firm, slumped as much as 11 percent intraday Monday after it projected weak revenue growth last week owing to global uncertainty.

The Bangalore-based firm's shares fell 11.02 percent to a low of 328.0 rupees, a near nine-month-low, on the .

The stock, which did not trade on Friday due to a public holiday, closed down 7.95 percent at 339.35 rupees.

Wipro on Friday reported a 16.7 percent year-on-year rise in consolidated to 17.29 billion rupees ($318 million) in the January to March quarter.

It also forecast revenue of $1.57 billion to $1.61 billion from IT services in the next quarter ending June, which suggested relatively flat growth amid tough business conditions.

"The has disappointed the markets. The stock is also being re-rated as a standalone IT firm, after the demerger of its businesses," Jagannadham Thunuguntla, SMC Global Securities chief strategist, told AFP.

Wipro this month demerged its non-technology operations—including consumer care, lighting, furniture, infrastructure and medical businesses—into a separate, unlisted firm called Wipro Enterprises.

Wipro's future earnings data, starting the April-June quarter, will be as a standalone IT firm.

Earlier in the month, rival Infosys also projected below-expected revenues, citing "global challenges".

TCS, Infosys and Wipro lead India's flagship IT outsourcing industry, which carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing and software development.

Explore further: China's Xiaomi raises more than $1 bn in funding

add to favorites email to friend print save as pdf

Related Stories

India's Wipro shares dive after business split

Apr 09, 2013

Shares in India's third-biggest software firm Wipro tumbled more than 11 percent on Tuesday, its first day of trading as a standalone IT company since it hived off other businesses into a separate unit.

India's Wipro Q1 net profit up 18%, sees weak outlook

Jul 24, 2012

India's third-largest software firm Wipro on Tuesday said net profit climbed 18 percent in the fiscal first quarter but said the global outlook remained uncertain after it gave a muted revenue outlook.

India's Wipro Q4 profit up 7.7% but forecast muted

Apr 25, 2012

India's third-largest software company Wipro on Wednesday posted a 7.7 percent year-on-year rise in net profit for the January-March period, but gave a muted forecast that sent its shares tumbling.

India's Wipro positive despite global uncertainty

Oct 31, 2011

Indian IT outsourcing giant Wipro on Monday projected a positive outlook for the industry, despite gathering clouds over the global economy, as it announced a rise in quarterly profits.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

17 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.