Shares of Wipro slipped by more than 4 per cent on the bourses today after the company posted a .1.23 per cent rise in first quarter net profit.
The country's third largest software exporter Wipro today reported a growth of 1.23 per cent in consolidated net profit for the quarter ended June 30, 2011, to Rs 1,334.9 crore.
Last year, the company had posted a net profit of Rs 1,318.6 crore for the first quarter, as per international accounting standards.
Shares of the company opened on a bullish note but soon lost ground and slipped into negative territory. They were trading at Rs 397.45 apiece, down 4.23%, at 11:56 hours on the Bombay Stock Exchange.
Marketmen said even though Wipro's Q1 numbers beat market estimates, the stock slipped because of profit booking.
Net income from sales during the reporting quarter stood at Rs 8,564 crore, as against Rs 7,236.4 crore in Q1, FY'11, up 18.34 per cent.
"We are seeing early signs of positive momentum after the re-organisation. Clients continue to focus on optimising operations, creating new products and getting access to newer markets. We will continue to make investments that bring superior value to our clients as they try to win in this market," Wipro Chairman Azim Premji said in a statement.
IT services, which contributed 75 per cent to the company's revenues in Q1, FY'12, stood at $1,408 million, a sequential increase of 0.5 per cent and a year-on-year increase of 16.9 per cent.
The company said it expects its revenues from the IT services business to be in the range of $1,436 million to $1,464 million for the second quarter ending September 30, 2011.
Wipro Ltd , sees headwinds to its profit margins in its fiscal second quarter due to wage hikes and a $150 million acquisition it did in April, its chief financial officer said on Wednesday.
Wipro raised salaries by 12 per cent to 15 per cent for its mostly India-based staff from June, and Suresh Senapaty said this would impact operating margins in the September quarter as well.
Wipro had said on April 1 it would acquire SAIC's global oil and gas technology services business for $150 million.
Senapaty said since the SAIC business unit had lower margins, it would also weigh on the Indian software firm's overall margins in the quarter.
Chief Executive T.K. Kurien said the company was focusing on boosting its growth in "few quarters" ahead as part of its management restructuring rather than in the near term.
The IT services division hired 4,105 new people this quarter, taking its total headcount to 1,26,490 employees as of June 30, 2011. It added 49 new customers during the reporting quarter.
The country's third largest software exporter Wipro today reported a growth of 1.23 per cent in consolidated net profit for the quarter ended June 30, 2011, to Rs 1,334.9 crore.
Last year, the company had posted a net profit of Rs 1,318.6 crore for the first quarter, as per international accounting standards.
Shares of the company opened on a bullish note but soon lost ground and slipped into negative territory. They were trading at Rs 397.45 apiece, down 4.23%, at 11:56 hours on the Bombay Stock Exchange.
Marketmen said even though Wipro's Q1 numbers beat market estimates, the stock slipped because of profit booking.
Net income from sales during the reporting quarter stood at Rs 8,564 crore, as against Rs 7,236.4 crore in Q1, FY'11, up 18.34 per cent.
"We are seeing early signs of positive momentum after the re-organisation. Clients continue to focus on optimising operations, creating new products and getting access to newer markets. We will continue to make investments that bring superior value to our clients as they try to win in this market," Wipro Chairman Azim Premji said in a statement.
IT services, which contributed 75 per cent to the company's revenues in Q1, FY'12, stood at $1,408 million, a sequential increase of 0.5 per cent and a year-on-year increase of 16.9 per cent.
The company said it expects its revenues from the IT services business to be in the range of $1,436 million to $1,464 million for the second quarter ending September 30, 2011.
Wipro Ltd , sees headwinds to its profit margins in its fiscal second quarter due to wage hikes and a $150 million acquisition it did in April, its chief financial officer said on Wednesday.
Wipro raised salaries by 12 per cent to 15 per cent for its mostly India-based staff from June, and Suresh Senapaty said this would impact operating margins in the September quarter as well.
Wipro had said on April 1 it would acquire SAIC's global oil and gas technology services business for $150 million.
Senapaty said since the SAIC business unit had lower margins, it would also weigh on the Indian software firm's overall margins in the quarter.
Chief Executive T.K. Kurien said the company was focusing on boosting its growth in "few quarters" ahead as part of its management restructuring rather than in the near term.
The IT services division hired 4,105 new people this quarter, taking its total headcount to 1,26,490 employees as of June 30, 2011. It added 49 new customers during the reporting quarter.
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