[wealthdesk shortname="Wipro" isinid="INE075A01022" bseid="507685" nseid="WIPRO" sector="Computers - Software" exchange="nse"]

Shares of <a href="https://www.cnbctv18.com/tags/wipro.htm">Wipro Ltd</a> fell close to 3 percent on Monday after attrition, higher-than-usual salary raises, and an increase in travel and other discretionary costs led analysts to cut the company's earnings forecast.

At 10 am, shares of the IT company were trading at Rs 494.40, down 14.60 points, or 2.87 percent lower on the BSE.
<img class="alignnone size-full wp-image-13352122" src="https://images.cnbctv18.com/wp-content/uploads/2022/05/wiprostock.png" alt="" width="672" height="415" />

The stock has been losing for the last two days and has fallen 3.49 percent in the period. Wipro is trading lower than its 5, 20, 50, 100 and 200-day moving averages.

Also Read: <a href="https://www.cnbctv18.com/earnings/wipro-q4-results-revenue-meets-estimates-attrition-rises-13329272.htm">Wipro Q4 results: Revenue meets estimates, attrition rises</a>

The IT company on Friday reported a 3.8 percent year-on-year (YoY) rise in net profit at Rs 3,087 crore for the fourth quarter ended March 31, 2022.

Its revenue from IT services jumped 3.1 percent. But the company's margin contracted 130 basis points.

<img class="alignnone size-full wp-image-13352072" src="https://images.cnbctv18.com/wp-content/uploads/2022/05/WiproEarnings.jpg" alt="" width="1604" height="897" />

The company's annual revenue crossed the $10 billion mark for the first time.

"Crossing $10 billion in revenue is a significant landmark for us. So we are now aiming higher. Revenue growth has been our fastest ever. In absolute terms, we have added one-fourth of our total revenue just this year," Wipro CEO and managing director Thierry Delaporte said.

Also Read: <a href="https://www.cnbctv18.com/business/companies/wipro-will-always-stand-by-principle-of-democracy-justice-equality-ceo-amid-ukraine-crisis-13334152.htm">Wipro will always stand by principle of democracy, justice, equality: CEO amid Ukraine crisis</a>

Wipro expects revenue for the first quarter ending 30 June to be $2.74 billion to $2.80 billion.

"We have guided for revenue growth of 1-3 percent, which will translate to a growth of 16-18 percent on a year-on-year basis in constant currency terms. However, for the next two to three quarters, we will see slightly lower margins. This is because of the investments we have made," Delaporte said.

The company added 45,416 new employees in FY22, which is the highest ever.

Morgan Stanley maintained an 'overweight' rating on Wipro's stock and reduced its target price from Rs 690 to Rs 640. The brokerage said the company's March-quarter performance was mixed compared to expectations, adding that its guidance for the quarter ending June was weaker than expected.

<img class="alignnone size-full wp-image-13352062" src="https://images.cnbctv18.com/wp-content/uploads/2022/05/MSonWipro.jpg" alt="" width="1480" height="820" />

Jefferies maintained a "hold" on Wipro's shares with a target price of Rs 545. The brokerage said that acquisitions are helping boost the company's growth, but they are also driving the margin down.

<img class="alignnone size-full wp-image-13352052" src="https://images.cnbctv18.com/wp-content/uploads/2022/05/JefferiesonWipro.jpg" alt="" width="1480" height="832" />

Nomura maintained a 'buy' on Wipro's stock and cut its target price from Rs 730 to Rs 690. The brokerage said that the company's revenue growth guidance for the quarter ending June is below their expectation of 2-4 percent.

<a href="https://www.cnbctv18.com/market/stocks/stock-market-news-live-updates-sgx-nifty50-bse-sensex-hdfc-britannia-wipro-brent-crude-bitcoin-gold-rate-vix-13350852.htm">Catch all our live market updates with CNBC-TV18's blog </a>

Home

Live TV

CNBC-TV18 Specials

Sections

Terms and Conditions

Wipro shares fall 3% owing to margin woes led by attrition and rising travel costs

By CNBCTV18.com May 2, 2022 11:12:25 AM IST (Published)

Live Tv

Market Movers