Wipro Stock Plunges After Weak Q1 Earnings Result
Earnings Decline Hits Wipro's Market Value
Shares of IT giant Wipro experienced a significant downturn on Monday, July 22nd, following the release of the company's Q1 earnings report. The stock fell by 8 percent in early trading on the BSE, with a closing price of Rs 513.35. This decline wiped out Rs 26.9 lakh crore from Wipro's market capitalization.
Financial Performance Update
Wipro's Q1 earnings came in below market expectations, with a 5.21% year-over-year rise in net profit to Rs 3036.60 crore. However, this increase was overshadowed by a 1.1% decline in revenue to Rs 192,496 crore.
The company attributed the disappointing results to various challenges, including supply chain disruptions and wage hikes. Wipro also projected a drop in IT services revenue for the current quarter, ranging from a 1% to a 3% decline.
Impact on Share Price
The weak financial performance and muted outlook caused investors to dump Wipro shares, leading to a sharp sell-off. Intraday trading saw the stock fall as low as Rs 508.25 per share, a drop of 8.79%. This decline brought the stock to its lowest level since August 2022.
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