IT firm Wipro, which reported sustained earnings in the second quarter.. Profits increased 1% to $265 million compared to the same period last year. That’s on a revenue gain of 18% from IT services. Wipro said it expected revenue in the next quarter to hover around $1.50-1.53 billion On the other hand, wage hikes have eaten into the company’s profits. The operating margin went down to 20% in the second quarter compared to 22% in the first. Shares of the firm dropped 1.7% on the BSE to 366.45 on a day the Sensex lost 0.56%.
Another big earnings announcement on Monday came from country’s biggest private lender. ICICI Bank posted robust results that were supported by growing demand. Consolidated net profit rose 43% to Rs1,992 crore. That came along with a loan book that expanded 20% to Rs2.33 trillion. CEO Chanda Kochar said loans from the companies grew during the second quarter. But she admitted growth in retail loans had slowed down. ICICI Bank also benefited from a surge in profits from its life insurance business to Rs 350 crore. But investors weren’t too enthused by the bank’s performance. Its shares declined 0.26% on the BSE to 930.50.
Indian markets rallied in early trade on Monday only to fall back and snap a four day winning streak. The Sensex declined 0.56% to 17705. And the Nifty went down 0.64% to 5327.
News of Wipro’s robust earnings fueled gains in some other stocks in the IT sector. Infosys closed 0.5% higher on the BSE at 2875.70 but Tata Consultancy Services went the other way, dropping 0.49% to 1114.20.
Meanwhile shares across other sectors declined on Monday. India’s biggest company RIL dropped 2.26% to 877.75 And Tata Motors fell 3.76% to end at 198.45