IndiaCatalog.com
India News
Search Web Directory
News Home
Wipro trades flat on muted June quarter revenue guidance
Posted on 18th April 2019
Wipro shares slumped 3 per cent from its early morning high to trade at Rs 282 after the firm gave a tepid outlook for the first quarter of FY20, citing delays in starting new projects. The stock had opened 3 per cent higher at Rs 289 on the BSE on Thursday. In comparison, the benchmark S&P BSE Sensex was up 0.29 per cent at 39,392 points at 09:20 am.

The country's third-largest IT services company said it expects revenue from IT services business to be in the range of $2,046 million to $2,087 million for the quarter ending June 30, 2019 (Q1FY20). This translates to a sequential growth of -1.0 per cent to 1.0 per cent excluding the impact of the divestment of its Workday and Cornerstone on demand business which was concluded in the quarter ended March 31, 2019, it said.

Management indicated that the growth momentum in FY20 would be better than last year on the back of close to double-digit growth in deal wins and a strong pipeline. Growth should be visible from Q2 onwards as Q1 tends to be a seasonally weak quarter.

Meanwhile, Wipro’s board approved proposal to buy back up to 323.1 million equity shares for an aggregate amount not exceeding Rs 10,500 crore, i.e. 5.35 per cent of total paid-up equity share capital, at Rs 325 per share. The buyback price is at around 16 per cent premium to Tuesday’s closing price of Rs 281 per share. The buyback is proposed to be made from shareholders on a proportionate basis under the tender offer.

“We found quarter on quarter (QoQ) guidance is disappointing. But we believe this is due to transient client issues rather than structural portfolio as Wipro’s new service lines of digital operations & platforms and data, analytics & AI have grown at 25.3 per cent year on year (YoY) and 13.2 per cent YoY in constant currency (CC) terms, respectively,” analysts at Elara Capital said in quarterly update.

According to analysts at Reliance Securities, a negative aspect was poor Q1FY20 revenue growth guidance, at a time when both TCS and Infosys have given positive outlook. Even considering Q1 is seasonally weak for Wipro, this seems to be lackluster. While providing guidance for Q1FY20, Wipro has factored in some project completions without any backfill, and delays in order execution. The IT major expects revenue momentum to improve from Q2FY20 onwards, it said.

Wipro’s guidance indicates a weak start to FY20E; revenue growth guidance for Q1FY20E (-1 per cent-+1 per cent) is much lower than our expectations of 0.5-2.5 per cent. Guidance was softer than expected due to delay in ramp-ups, analysts at Prabhudas Lilladher said in result update.

The brokerage firm expects participation from promoters’ group, which will have around 5 per cent acceptance ratio for minority shareholders. Wipro has cash of Rs 32,900 crore as on FY19. The buyback will provide a cushion to stock price in near term however due to muted revenue growth as compared to peers, Wipro will remain an underperformer, it added.
Related Companies: Wipro Technologies (Wipro Ltd)   Bombay Stock Exchange - BSE   

Other Latest News
EC rejects Opposition's demands concerning EVMs
Posted on 22nd May 2019
New Delhi: The Election Commission of India (EC) has rejected the demands of the opposition regarding Voter Verifiable Paper Audit Trail (VVPAT) on Wednesday.

The issue to change the protocol for counting was discussed by the Chief Election Commissioner Sunil Arora at his meeting with election commissioners Ashok Lavasa and Sushil Chandra.


Big PSU bank merger on cards if Modi wins 2019 election; PNB may merge these banks with itself
Posted on 22nd May 2019
The government is planning to merge state-run Punjab National Bank with two other PSU banks — Oriental Bank of Commerce, Andhra Bank and Allahabad Bank after the new administration is in place following the 2019 Lok Sabha elections, Reuters reported citing unidentified sources. This is in a bid to keep 5-6 larger banks in the country, which the ruling Narendra Modi-government has been advocating for some time.

YES Bank begins provisioning for exposure to ADAG, Essel group firms
Posted on 22nd May 2019
YES Bank, which has exposures to Anil Ambani's Reliance group and Essel group companies, has started making provisions for loans given to both entities. The provisioning began after rating agencies downgraded debt instruments of both groups.

YES Bank has an exposure of Rs 13,000 crore to Reliance group entities and another Rs 3,300 crore to Essel group companies, according to analysts.


Reliance tops IOC in sales
Posted on 22nd May 2019
Reliance Industries has toppled state-owned Indian Oil Corporation (IOC) to become the country’s biggest company by revenue.

In 2018-19, Reliance has reported a turnover of Rs 6.23 lakh crore. In comparison, IOC posted a turnover of Rs 6.17 lakh crore for the fiscal, according to regulatory filings by the two companies.


Sensex rises over 150 points; Nifty tests 11,700
Posted on 22nd May 2019
The benchmark BSE Sensex jumped over 150 points in early trade on Wednesday, led by gains in oil and gas, banking and IT stocks, ahead of the general election results.

The 30-share index was trading 157.51 points, or 0.40%, higher at 39,127.31. In similar movement, the broader NSE Nifty rose 30.90 points, or 0.26%, to 11,740. In the previous session, the Sensex ended 382.87 points, or 0.97%, lower at 38,969.80, and the Nifty plunged 119.15 points, or 1.01%, to 11,709.10.


» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Cootera.com Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for Wipro trades flat on muted June quarter revenue guidance
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Name*
Comments*
Security Code*
 

Be the first person to write a business review for Wipro trades flat on muted June quarter revenue guidance

Most Read News

Slow income growth impending deposit growth: RBI study

Vodafone Idea to do away with all low Arpu subscribers by May end

Infosys to allocate up to 50 mn shares to incentivise staff

Sensex, Nifty start on a positive note amid firm global cues

ICICI-Videocon loan case: Chanda Kochhar, husband appear before ED again

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
Home
About us
Link to us
Advertise
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019 IndiaCatalog.com
    All Rights Reserved
Privacy Statement