Wipro stock tanks 4% after tepid September quarter earnings

Shares of Wipro tanked over 4 per cent after the IT major posted a 7.6 per cent drop in its second-quarter net profit and said it expects revenues in the ongoing quarter to be impacted by a "mixed demand environment".

Reacting to the quarterly earnings, the stock of the company fell as much as 4.22 per cent on the BSE and was the top loser on both the benchmark indices Sensex and Nifty.

However, brokerage Angel Broking maintained 'buy' rating on the stock.

Mirroring impact of Brexit and global economic slowdown have had on Indian IT firms, the country's third largest software services firm said it expects its IT service revenue for the October-December quarter of 2016-17 to be in the range of USD 1,916 million to USD 1,955 million.

With IT services revenue at USD 1,916 million in the September quarter, this would translate into a 0-2 per cent sequential growth.

The company also missed its own guidance of USD 1,931 million to USD 1,950 million for the July-September period, given at the beginning of the quarter.

The company's net profit (after tax, minority interest and share of profit of associates) stood at Rs 2,070.4 crore in the quarter under review, down from Rs 2,241 crore in the year-ago period.