Stocks of major information technology firms are likely to see stock-specific movement next week, based on Apr-Jun earnings announced by these companies. HCL Technologies, which posted a robust year-on-year growth for Apr-Jun, rose nearly 8% this week and may continue the trend in the coming week as well. Strong on-year growth of 37.7% in revenues at 59.19 bln rupees coupled with tighter control on costs helped the Delhi-based IT major beat Street expectations of its June quarter earnings by a yawning gap. The company reported a 67.3% on-year jump in quarterly net profit to 8.54 bln rupees. Infosys and Wipro, which disappointed investors with poor earnings for Apr-Jun, are likely to continue seeing lack of investor interest next week. This week, stocks of Infosys and Wipro declined 3% and 8%, respectively.
Tuesday, Wipro posted a lower-than-expected net profit for Apr-Jun, and shared a tepid guidance for Jul-Sep, on the back of delays in decision-making by clients, and order closures. The soaps-to-software major posted a 6.7% sequential growth in consolidated net profit for Apr-Jun at 15.80 bln rupees. Wipro's 2QFY13 (Jul-Sep) US dollar revenue guidance of 0.3-2.3% QoQ (quarter-on-quarter) growth was poor and, in absolute terms, is the third successive quarter that the IT major has given the exact same dollar revenue guidance, implying no growth momentum whatsoever. In our view, this guidance is likely to lead to the stock continuing to get a short shrift from investors.
(www.rupeedesk.in)
