Indian major IT player, Wipro, witnessed a deep plunge in the stock market on Monday. The stocks of the company tanked more than 8 per cent in the session as the markets reacted to the poor performance the IT firm clocked in its financial results for the first quarter of the 2024-25 fiscal year (FY25).
As of 10:25 AM, the shares of the firm traded at Rs 511.05 apiece, slipping 8.29 per cent in the session. This decline in the company’s stock was a reaction to the weak Q1 results reported on Friday.
Wipro shared an official exchange filing and informed that its consolidated revenue contracted by 3.7 per cent to Rs 21,963.8 crore in the April-June quarter in the current financial year, against Rs 22,831 crore logged in the corresponding period in the preceding 2023-24 fiscal year (FY24).
This stood in contrast to the consolidated net profit of the company which increased by 5.21 per cent in the quarter. The firm clocked a profit of Rs 3,036.6 crore in the June quarter in FY25, against Rs 2,886 crore reported in the preceding Q1FY24.
The company suffered a reduction of 5.5 per cent in its revenue for the IT services segment in the quarter under review on a year-on-year (YoY) basis. The fall in the revenue in the segment was 1.2 per cent sequentially.
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Sharing details about the performance, Srini Pallia, CEO and MD, Wipro, noted that the company recorded large deal bookings of more than $1 billion in the quarter, which was a peak high figure for the firm. “Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and preparing our workforce for an AI-first future.” Pallia added.