Wipro share price slumped over 4 per cent to Rs.477 after India's third biggest outsourcer came out with a soft guidance for the December quarter (Q3). The Bengaluru-based company had announced its earnings on Friday after the market hours. The outsourcer registered in-line earnings for the 3rd quarter but the Dalal Street was disappointed by its guidance for the December quarter.
Wipro gave a dull revenue growth outlook for the present quarter, citing global political uncertainties and seasonal matters such as furloughs and reduction in working days.Wipro said that it expected revenue from its information technology (IT) services business for the quarter ending December 31, 2016 in a range between 1,916 million dollars, roughly flat, and 1,955 million dollars, up 2 per cent over the quarter to September 30, 2016.
Mindtree, another mid-tier outsourcer, which also announced earnings after market hours on Friday, 21st Oct, also reported weak numbers for the September quarter. Its dollar revenue declined 3 per cent sequentially to 193 million dollars in the September quarter. Mindtree share price slumped over 5 per cent to Rs.451.
The BSE sector index for IT stocks, BSE IT, is down over 10 per cent in the past 6 months as compared with 9 per cent gain in broader Nifty50 index. India's 150 billion dollar-plus information technology sector has been hit by delays in technology spending by foreign clients who make up for the bulk of its revenue. Wipro's muted forecast echoes the cautious business outlook given by bigger rivals.
Earlier this month, top software exporter Tata Consultancy Services Limited or TCS reported lacklustre revenue growth, while 2ndlargest rival Infosys cut its annual revenue growth guidance for the 2nd time in 3 months.
Mindtree and Wipro are among the top 500 Shares identified by Dynamic Levels research team for the current quarter out of 1700 Shares listed on the NSE. They have strong fundamentals and are safe to invest in, as per Dynamic Levels analysts.
No comments:
Post a Comment