Shares of Wipro were trading over 3 per cent higher during Thursday's session after the IT firm posted a 12.5 per cent rise in consolidated net profit at Rs 2,387.6 crore for the April-June quarter.

Wipro guided for up to 2 per cent sequential revenue growth for the July-September period. The scrip was trading 3.14 per cent up at Rs 267.85 at around 10 am (IST), while BSE Sensex was trading 60 points, or 0.15 per cent, down at 39,155 at around the same time.

Revenue of the company increased by 5.3 per cent to Rs 14,716.1 crore during the reported quarter, compared with Rs 13,977.7 crore in the year-ago period.

The Bengaluru-based company's consolidated income rose by about 5 per cent to Rs 15,566.6 crore during the said quarter. Brokerage firm Sharekhan said that Wipro delivered lower-than-expected revenue performance for Q1FY2020.

However, adjusted EBIT IT margin remained a tad ahead of estimates.

Management highlighted that the capital return policy would be maintained at 40-50 per cent of net profit despite change in taxation policy, as free cash flow to net profit remains strong at 98 per cent. “We maintain 'Hold' with a revised price target of Rs 285,” Sharekhan said. However, global financial firm Credit Suisse maintained ‘Under-perform’ rating on Wipro with a target price of Rs 240.

On the other hand, Macquarie retained ‘Neutral’ stance on the company with a target price of Rs 270.

Macquarie sees lower PAT growth for FY20-21E by 1.6-4.3 per cent and believes revenue growth to remain sub-par to industry.