Wipro does an Infosys after results; stock crashes 10%
Wipro stock crashed 10% after posting tepid Q4FY13 results
Wipro Ltd. is down 10.5% in the morning session trade on the bourses Monday. Stock slipped after the software exported failed to enthuse with its Q4 FY 13 results. The stock closed at Rs 96.25, up around Rs. 2.30 or 2.4% on NSE. The stock is trading at Rs 331.45 at 9:54AM on NSE, trading down by Rs. 37.55 or 10.2%. Total traded volumes at the counter stood at 35.2 lakh as against its five-day average of 19.64 lakh.
Wipro Ltd posted a net profit after taxes, minority interest and share of profit of associates of Rs. 172.8 billion for the quarter ended March 31, 2013 as compared to Rs. 148.09 billion for the quarter ended March 31, 2012.
Total Income has increased from Rs. 875.09 billion for the quarter ended March 31, 2012 to Rs. 992.08 billion for the quarter ended March 31, 2013.
For the consolidated period for the Year ended March 31, 2013, the Group has posted a net profit after taxes, minority interest and share of profit of associates of Rs. 663.59 billion for the year ended March 31, 2013 as compared to Rs. 557.30 billion for the year ended March 31, 2012.
Total Income has increased from Rs. 3310.37 billion for the year ended March 31, 2012 to Rs. 3881.68 billion for the year ended March 31, 2013.
Wipro expect revenues from our IT Services business to be in the range of $15.75 billion to $16.10 billion.
History repeats itself after a decade. IT bellwether Infosys nosedived sharply on Friday post its disappointing quarterly earnings. Though its Q4 FY13 net profit numbers came in marginally ahead of estimates, a hit on the other income front dragged the stock lower.
It registered its biggest fall since April 2003 eroding almost Rs 356 bn in market capitalisation. Its market capitialisation on April 11 April was Rs 1,674 bn as compared to Rs 1,318 bn.
Earlier, the IT bellwether, Infosys registered its biggest intra-day fall of around 27% on account of disappointing FY03 numbers. The company missed its fourth-quarter forecasts due to lower prices and higher marketing expenses. Net income increased 23% at Rs 2.59 bn for the three months ended March 31. Stock prices had then closed at an eight-month low eroding almost Rs 44 bn in market value.
Post that dramatic decline in 2003, Infosys turned out to be a multi-bagger. In a decade, it delivered returns of almost 11 times. The stock sky rocketed from Rs 350 per share in April 2003 to an all-time high of around Rs 3484 per share on January 4, 2011.
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