Wipro shares fell 6.79% to Rs 380.05 and hit a new 52-week low on Thursday after the company reported a 9.27% year-on-year (YoY) drop in net profit for the quarter ended September 2022. Wipro shares have lost 48.62% from their 52-week high of Rs 739.80 in comparison to today’s market price.

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Wipro’s market capitalization has dropped to Rs 2.11 lakh crore. On the BSE, 4.21 lakh shares of the company changed hands, resulting in a turnover of Rs 16.27 crore. The stock has dropped 43% in a year and lost 46% in 2022.

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Wipro’s net profit declined to Rs 2,659 crore in the September quarter, compared to Rs 2,930.70 crore in the previous year’s corresponding quarter.

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Revenues, on the other hand, increased 14.60% year on year to Rs 22,539.70 crore, up from Rs 19,667.40 crore in the same period the previous year. IT Services revenue was $2,797.70 million, a 2.3% increase sequentially. Revenue growth in constant currency (CC) terms stood at 4.1% sequentially. 

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Wipro’s top five clients increased 19% year on year in the September quarter, while the top ten clients grew 17% year on year.

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“We achieved margins of 15.1% in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our operating cash flows were robust and at 181% of our Net Income for the year,” Wipro CFO Jatin Dalal said.

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The IT behemoth said that large deal bookings increased 42% year on year in H1’23. In terms of Total Contract Value (TCV), the whole order book increased by 24% year on year in Q2.

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“We lower our FY23/FY24 EPS estimate by 6%/2% to factor in a miss on growth and elevated risk. We maintain our Neutral stance as we view the current valuation as fair,” said domestic brokerage and research firm Motilal Oswal in a note.

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The brokerage maintained its Neutral rating on Wipro shares, with a target price of Rs 380, as it waits for additional confirmation of Wipro’s updated strategy’s execution and successful recovery from the company’s growth challenges over the previous decade before becoming more bullish on the IT stock.