Wipro stock plummets, sinks to two-year low

It was a familiar scene in the markets on Thursday, April 17. Close on the heels of the Infosys drubbing, software major Wipro too was hammered by the market following the announcement of results and lower than expected earnings guidance. Wipro crashed to Rs 825 before recovering lost ground and ending the day at Rs 884.50, down 8.25 percent.

The BSE Sensex ended below the 3000 mark at 2984 points. The company’s net profit for FY03 took a hit of 6 percent to Rs 813.2 crore compared to Rs 866.1 crore in the year ended March 31, 2002. The company has given a June quarter guidance of $172 million and $16 million for Wipro Technologies and Wipro Spectramind, respectively. Vivek Paul, vice chairman, Wipro said that the company saw sustained revenue growth in each of its IT, R&D and BPO businesses. Margins expanded in the BPO business, but came under pressure in IT services as it absorbed acquisition costs and pricing pressures, along with a rising rupee.