Wipro share price plunges 7% as Q3 earnings and weak guidance for Q4 sour investor sentiment

Wipro reported weak bottom-line growth on account of higher provisioning for labor costs due to the new labor code. The company’s net profit fell 7% YoY to ₹3119 crore. The company’s revenue for the quarter advanced 5.5% annually to ₹23,556 crore in the October-December period from ₹22,319 crore in the year-ago period.

On the operating front, the company’s operating margin expanded by 0.9% QoQ to 17.6%, but remained under pressure.

However, the deal wins remained the lowest among the six quarters. The company reported deal booking at $3.3 billion as compared to $4.6 billion in the same quarter last year and $3.5 billion in the previous quarter.

Additionally, the company revised its revenue guidance to up to 2% for the upcoming quarter. The press release read, “We expect revenue from our IT Services business segment to be in the range of $2,635 million to $2,688 million*. This translates to sequential guidance of 0% to 2.0% in constant currency terms.”

The company also annouced an interim dividend of ₹6 per share for which the record date is set on January 27.