Wipro Q1 Results Declared for FY12 Net Profit Down by 2.9%, Sell Wipro Stock

India’s third largest software exporter, Wipro Ltd. has declared its first quarter Q1 results today, with a decline of 2.9% in its net profit to Rs.1,335 crore versus Rs.1,375 crore in the previous quarter (QoQ basis). It was also found that EBIT margins for the company were at 21.96% for the first quarter.

Consolidated revenues jumped by 3% to Rs.8,564 crore from Rs.8,302.4 crore for the previous quarter. Its global IT services revenues surged 1.8% to Rs.6,405 crore in the first quarter from Rs.6,289 crore in the last quarter (QoQ basis).

Revenues from Indian operation jumped by over 30.6% to Rs.1,920 crore versus Rs.1,470 crore on QoQ basis (quarter-on-quarter). Also the revenues from United States (US) region increased over 7% to Rs.3,122 crore from Rs.2,914 crore. From Europe region, revenues jumped surprisingly by 34.3% to Rs.1,880 crore from Rs.1,400 crore as compared to previous quarter.

Trading views on Wipro Stock: Looking the charts of WIPRO stock we see that the stock is under pressure as it is trading below the 100 EMA on the weekly chart so we are cautious for near term as stock can decline significantly from the current levels. So we would advice traders to trade short in wipro below 435 level for target as 407 and 385 level, it is also advisable to place the stop loss order near 445 level on closing basis. Investors should stay away from wipro for now and can give exposure to companies like TCS for long term.