Shares of Wipro tumbled nearly 3% to Rs 493.55, falling 5% from its intra-day higher of Rs 519 on the BSE, in Monday’s intra-day trade after it reported a dispiriting margin for March 2022 quarter.

IT Services company Wipro Limited reported a 3.85% year-on-year rise in net profit to Rs 3,087 crore in the March quarter of fiscal 2022. Consolidated revenue from operations for the quarter grew 28% YoY to Rs 20,860 crore from March 2021 quarter’s 16,245 crores. In dollar terms, the IT Services segment revenue was at $2.72 billion, up 3% QoQ and 24.4% YoY.

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“We have had an outstanding year, finishing with $10.4 billion in revenues, and an industry-leading growth of 27% year on year. This is our sixth straight quarter of strong revenue growth at or over 3%, said Thierry Delaporte, CEO and MD of the company.

With all markets, sectors and Global Business Lines now growing in the double-digits year on year, we have a strong foundation for next year’s growth,” he added.

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The company expects revenue growth of 1-3% for the first quarter of fiscal 2023 or to be in the range of $2,748 million to $2,803 million. The management has also said that based on their growth for fiscal 2023, the guidance will be 16-18%. The margins in the medium range are expected to be in the range of 17-17.5%.

For the financial year 2021-22, the company reported revenue of Rs 79,093 crore, up 27.68% year on year.

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Wipro said that it has 243,128 employees as of March 31, 2022. Attrition continues to surge at 23.8%, up from 22.7% in the December quarter of fiscal 2022.

“We see the muted topline growth guidance for 1QFY23 as disappointing since the expectation was that Wipro’s Q1 seasonality is a thing of the past and it should gain from the strong demand for consulting-led IT services,” Motilal Oswal Financial Services said.

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The company’s statement on-demand environment remains strong but it has not signed any major deals in the past few quarters. The brokerage firm has maintained a ‘Neutral’ rating on the stock.

Morgan Stanley maintained an ‘overweight’ rating on Wipro’s stock and slashed the target price from Rs 690 to Rs 640. The company’s March quarter performance was mixed compared to expectations and its guidance for the quarter ending June was weaker than expected, said the brokerage firm.

Shares of Wipro closed 13.30 points or 2.61% down at Rs 295.50.