Shares of Wipro Ltd plunged more than 6% to hit a 52-week low of ₹383 apiece on the BSE in Thursday's early trading session after the IT services major reported an over 9% drop in its September quarter net profit to ₹2,659 crore, weighed down by rising staff expenses and lower non-US earnings.
This translates to a sequential growth of 0.5% to 2%.
We maintain our Neutral stance as we view the current valuation as fair," said domestic brokerage and research firm Motilal Oswal in a note.
Q3 revenue growth guidance was disappointing.
EBIT margins of 15% in H1, with two months of wage hike impact yet to come (in Q3), means the company will not be able to report margins much above its declared floor of 15%," said PhillipCapital Over the last eight quarters, Wipro’s margins have fallen by over 600 bps, primarily due to acquisitions like Capco and Rizing, which have led to a big reset at gross margin levels.

Source - MInt