Wipro’s Shares Surge 13 Percent to 52-Week High Despite Profit Decline

Wipro's Shares Surge 13 Percent to 52-Week High Despite Profit Decline

VoM News Desk | January 15, 2024 | 10:36 AM IST | Breaking News | Follow on Google News

Wipro’s Shares Surge 13 Percent to 52-Week High Despite Profit Decline/Mint

Wipro’s Shares Surge 13 Percent to 52-Week High Despite Profit Decline

Wipro experienced a 13% surge in its shares, reaching a fresh 52-week high of ₹526.45, driven by better-than-expected December quarter earnings. Despite a 12% YoY and 1.2% sequential decline in net profit to ₹2,694 crore for Q3FY24, the company’s American Depository Receipts (ADRs) soared nearly 18%, hitting a near-20-month high of $6.35.

Wipro’s consolidated revenue from operations also decreased 4.4% YoY and 1.4% QoQ to ₹22,205.1 crore, with experts predicting a continued underperformance in profits. However, the company reported a 1.8% QoQ increase in net income to ₹2,690 crore for Q3FY24.

Despite the profit decline, Wipro expects revenue from its IT services segment to be in the range of $2,615 million to $2,669 million for Q4FY24, providing a sequential guidance of -1.5% to +0.5% in constant currency terms.

Following Wipro’s surge, the entire Nifty IT index jumped over 2.5%, with other IT peers like Tech Mahindra, HCL Tech, TCS, and Infosys hitting their respective 52-week highs on Monday. Brokerage houses Axis Securities and HDFC Securities retained a ‘sell’ and ‘reduce’ call on Wipro, respectively, citing concerns over growth markers and execution capabilities despite a strong deal pipeline.

Disclaimer: The views and recommendations mentioned are those of individual analysts or broking companies and not of Mint. Investors are advised to consult certified experts before making any investment decisions.

VoM News Desk

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