Wipro shares tank 9% in 3 days following Q2 result announcement

Shares of IT service provider Wipro have dropped as much as 8.7% to Rs 372.40 in the last three trading sessions after the company on Wednesday reported a 9.3% year-on-year (YoY) decline in its profit after tax (PAT) for the second quarter that ended September 30, 2022.

The profit figure was lower than the Rs 2,820 crore anticipated in an ET NOW poll.

Meanwhile, IT major's Q2 revenue rose 14.6% YoY to Rs 22,540 crore.

Anand James, Chief Market Strategist at Geojit Financial Services said, "On the face of it, a fresh break below the recent low, which has held since the latter of June, is a clear red signal (for Wipro shares). But, put in perspective, the stock has fallen almost double as other IT biggies like TCS or Infy, from the 2021 peak. This, along with the current price of Rs 377 being in the proximity of 68% fibo of the 2020-2021 run, there is a case of value buying. However, with price action yet to paint any reversal signs, we may be in for yet another consolidation before the run-up begins. Deeper support is seen at Rs 282.”

The Bengaluru-based company's operating margin in the IT services segment grew 16 basis points quarter-on-quarter (QoQ) to 15.1% in the said quarter. In constant currency terms, the IT services segment revenue increased by 4.1% QoQ and 12.9% YoY.

During the September quarter, Wipro's top 5 clients grew 19% YoY, and the top 10 clients grew 17% YoY in constant currency terms.

Wipro said its large deal bookings grew 42% YoY in H1 2023. The overall order book in TCV terms grew 24% YoY in Q2.

At 12.06 pm, the scrip was trading 0.19% lower at Rs 376.6 over its last day’s trading price of Rs 377.30 apiece. The stock has fallen nearly 30% in the last six months while it has declined 48% year-to-date.

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