Wipro Share PerformanceWipro Share Price: Indian stock market has seen a stormy rise on the first trading day of the week. At 11.45 am, Sensex was trading at 73,179.20 with a rise of 0.84 percent or 610.75 points. At the same time, Nifty was also trading at 22,053.05 with a rise of 0.72 percent i.e. 158.50 points. Amidst the boom in the market, Wipro’s shares have also seen a rise. Share prices jumped 13 percent shortly after market opening today and reached a one-year record high. At 9.35 am, it had reached the level of Rs 529. However, a slight decline was seen in the stock at 12 noon. It was trading at Rs 497.30 with a rise of 6.84 percent i.e. Rs 31.85. The results for the quarter September to December 2023 have been released by the company. The company’s net profit has declined by 11.74 percent to Rs 2,694.2 crore during this period. Along with this, the company’s revenue has also declined by 4.4 percent to Rs 22,205.1 crore.
Wipro’s Why did share prices increase despite losses?
Despite the poor results of the third quarter of the financial year 2023-24, Wipro’s shares are seeing a rise. This increase is the result of a strong increase of 17 percent in Wipro’s American Depository Receipt (ADR). Analysts are calling Wipro the leader among IT majors that have disclosed their December quarter results, which point to a positive sign in discretionary spending. The company’s performance in Q3 marks a turning point. Wipro’s consulting business CAPCO contributed to the positive sentiment by registering double-digit booking growth. Which is an indication of a possible surge in spending.
What is the opinion of experts
Wipro’s profit has fallen for the fourth consecutive quarter. In such a situation, analysts of brokerage firm Motilal Oswal consider the results of the third quarter of the financial year 2023-24 as positive for the company. The firm says that with more deals being won in the consulting vertical, the friction in that segment is now reducing. This is likely to improve the growth rate of the company. Wipro won big deals worth $0.9 billion in the quarter ending December 2023. The total deals achieved during this period were worth $3.8 billion. At the same time, IDBI Capital believes that early signs of return of growth in Wipro’s consulting sector are visible. Neutral rating has been given for this. Whereas, its target price is Rs 520.
How much profit did Wipro make in the third quarter?
Information technology (IT) company Wipro’s consolidated net profit in the third quarter of the current financial year (October-December, 2023) declined by 11.74 percent to Rs 2,694.2 crore. The net profit of the company was Rs 3,052.9 crore in the same quarter of the last financial year. Wipro’s consolidated income also declined by 4.4 percent to Rs 22,205.1 crore in the quarter under review, which was Rs 23,229 crore in the same quarter of the last financial year. The company’s IT services segment’s revenue declined by 4.5 percent to Rs 22,150.8 crore in the December 2023 quarter, compared to Rs 23,196 crore in the same quarter of the last financial year. Wipro said it expects revenue from the IT services business segment in the fourth quarter (January-March, 2024) to be between $261.5 million (about Rs 21,845 crore) to $266.9 million (about Rs 22,296 crore).