Shares of Wipro Ltd fell over 5 percent during opening trade on Thursday on the BSE after the IT services major posted a consolidated net profit of Rs 2,969 crore for the December 2021 quarter, almost flat compared to the year-ago period.

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At 9:15 am, Wipro shares were trading 4.61 percent down, or 31.90 points lower at Rs 659.45.

In the corresponding quarter last year, the company posted a net profit of Rs 2,968 crore. Its revenue from operations grew nearly 30 percent to Rs 20,313 crore from Rs 15,670 crore in the quarter ended December 2020.

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Bengaluru-based company's earnings before interest and tax (EBIT) is seen at Rs 3,553.5 crore, while EBIT margin stood at 17.6 percent compared to 17.8 percent in the previous quarter.

Thierry Delaporte, CEO, and MD said, "Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 mn revenue league, in the last 12 months."

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Wipro will stay on course with its strategic priorities, Delaporte pointed out while exuding confidence about "sustaining the growth momentum".

According to the company, the demand environment is strong. "Our growth rates, our pipeline, and our order bookings all reflect that. Our pipeline in fact shows a healthy mix of medium and large deals across all our business lines," Delaporte said.

The company continues to see rapid expansion in small- and mid-sized deals, which represents growth in existing accounts, as well as expansion of market portfolios.

Also Read: TCS, Infosys Q3 results beat Street forecasts, Wipro falls short of expectations

“On the revenue guidance and outlook for Q4, Wipro expects revenue from IT segment would sequentially grow of 2% to 4% as expected by street. Order bookings continued to be robust by adding 7 new customers in the more than $100 mn revenue league, in the last 12 months. Based on the results we expect stock would react marginally down from today closing of Rs 691 and give an opportunity to accumulate in the range of Rs 660-675. We are overall optimistic on the stocks with medium to long term horizon,” said Prashanth Tapse, Vice President (Research) at Mehta Equities Ltd.

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First Published:Jan 13, 2022 9:33 AM IST