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Wipro shares jump over 6 pc post Q3 earnings; mcap climbs Rs 15,321 cr

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NewsDrum Desk
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Wipro Company

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New Delhi:  Shares of Wipro on Monday ended more than 6 per cent, adding Rs 15,321.41 crore to its market valuation, after the IT company's December quarter earnings beat estimates.

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The stock jumped 6.25 per cent to settle at Rs 494.55 apiece on the BSE. During the day, it zoomed 13.10 per cent to reach its 52-week high of Rs 526.45.

On the NSE, it climbed 6.37 per cent to Rs 495.10. During the day, it rallied 13.65 per cent to Rs 529 -- its 52-week peak.

It was the biggest gainer among the Sensex and Nifty firms.

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The company's market capitalisation (mcap) jumped Rs 15,321.41 crore to Rs 2,58,370.10 crore.

Other IT stocks -- HCL Technologies, Infosys, Tech Mahindra and Tata Consultancy Services -- also saw frenzied buying.

The BSE Information Technology index ended nearly 2 per cent higher.

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Benchmark equity indices hit record peaks on Monday amid a sharp rally in IT stocks. The 30-share BSE Sensex jumped 759.49 points to settle at a new closing high of 73,327.94, and the Nifty climbed 202.90 points to a record 22,097.45.

On Friday, IT company Wipro posted a nearly 12 per cent decline in consolidated net profit to Rs 2,694.2 crore in the December quarter amid a "cautious" demand environment and clients making conservative investments.

Vikas Jain, Senior Research Analyst at Reliance Securities, viewed the Wipro results as better than expected.

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Wipro's competitor Infosys posted a 7.3 per cent decline in net profit, while Tata Consultancy Services and HCL reported an 8.2 per cent and 6.2 per cent increase, respectively, in consolidated profit in this quarter of the ongoing fiscal.

"Wipro's Q3 FY24 performance suggests inflexion. Revenues (-1.7 pc on constant currency terms, quarter-on-quarter) came towards the upper end of the guided band, a first in the past four quarters," according to a report by JM Financial Institutional Securities Ltd.

Wipro's consolidated revenue from operations fell 4.4 per cent to Rs 22,205.1 crore during the December quarter, as against Rs 23,229 crore a year ago.

This is the fourth straight quarter when Wipro recorded a decline in its IT services revenue.

Wipro said it expects de-growth or almost flat growth in revenue in the next quarter, thereby indicating a lower growth for the company for the fiscal on a year-on-year basis.

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