Wipro Shares Turn Flat After Weak Q1 Show

Shares of Wipro on Thursday turned flat in afternoon deals after sliding more than 2 per cent in early trade after posting weak numbers in the first quarter (ended June 30) of the current financial year 2022-23 (FY23). The IT company fell as much as 2.38 per cent to hit an intraday low of Rs 402.40.

Though, the stock rebounded from day's low and as of 12:15 pm, was up 0.06 per cent at Rs 412.45 against its previous close of Rs 412.20.

Wipro reported a 21 per cent decline in its June quarter net profit as higher employee-related costs pushed up the firm's overall expenses.

Consolidated net profit at Rs 2,563.6 crore in April-June was 20.6 per cent, lower than Rs 3,242.6 crore net profit in the same period a year back. Sequentially, the profit fell 16.9 per cent.

Its expenses, which includes employee cost, jumped almost 23 per cent to Rs 18,647.5 crore, with attrition at 23.3 per cent. Among the expenses, employee benefit cost was Rs 12,613.4 crore, up around 23 per cent from last year.

Retaining employees is leading to cost pressure on IT companies, denting their margins.

However, Wipro's revenue for the quarter rose 17.9 per cent year-on-year to Rs 21,528.6 crore.