Wipro shares slide after disappointing Q1 result

Wipro is a global IT services, BPO and Product Engineering companies. It has also entered the consumer product and lighting solutions market. The company provides its services to many industries namely aerospace, automotive, banking, healthcare, telecommunication, consumer electronics, retail, media, manufacturing, public infrastructure, utilities and many more.

Wipro, India's third largest outsourcing firm reported its First quarter FY16 result on Thursday. The total revenue rose by 1.64 per cent to Rs 12370.6 crore in Q1FY16 as against Rs 12171.4 crore in the Q4FY15. Revenue from IT services grew by 3 percent quarter-on-quarter to Rs 11,577 crore and dollar revenue increased by 1.1 percent to USD 17.9 crore. The Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 0.2 per cent sequentially.

The total expenses of the company rose by 2.6 per cent to Rs 9968.4 crore in Q1 FY16 as compared to Rs 9715.8 crore in Q4FY15 due to increases in employee cost, depreciation and other expenses by 3.84 per cent, 3.06 per cent and 2.91 per cent respectively. The EBITDA decreased by 1.56 per cent to Rs 2738.9 crore, EBITDA margin decreased by 72 basis points to 22.14 per cent.

The Company's other income declined by 4.27 per cent, finance cost increased by 41 per cent and net profit dropped down by 3.7 per cent to Rs 2187.7 crore in Q1FY16 as against Rs 2272 crore in Q4FY15. The company added 36 new customers in Q1 for IT services, taking the total to 1,071 customers. It had a headcount of 1,61,789 employees at the end of June 2015.

TK Kurien, Chief Executive Officer, Wipro said, "On the run side, deals are getting increasingly competitive and we are focused on increasing the levels of automation." "On the change side, new stakeholders are influencing buying decisions in the digital space,"

After the disappointing and below expected result declaration, today the company's shares are trading at Rs 569, which is around 4 per cent lower.