Wipro Shares Jump Over 6% Post Q3 Earnings; Mcap Climbs Rs 15,321 Crore

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

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

On the NSE, it climbed 6.37% 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.

The company's market capitalisation 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% higher.

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% 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.

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

"Wipro's Q3 FY24 performance suggests inflection. Revenues (-1.7% 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% 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.