Wipro share price jumps 13% to 52-week high post Q3 results; Nifty IT up 2.5%

livemint.com:

Wipro surged 13 percent in intra-day deals today to hit a fresh 52-week high of ₹526.45 as the company's December quarter earnings beat estimates even though it reported a decline in its net profit for the December quarter (Q3FY24). This also comes after the company's American Depository Receipts (ADRs) surged almost 18 percent to hit a near-20-month high of $6.35 after the company reported its results on January 12. Wipro's net profit fell 12 percent year-on-year (YoY) and 1.2 percent sequentially to ₹2,694 crore.

The company's profit in Q2FY24 was ₹2,667.3 crore and in Q3FY23 was at ₹3,065 crore. This is the fourth consecutive quarter where Wipro has reported a decline in profits on a YoY basis and market experts expect this underperformance to continue. Its consolidated revenue from operations declined 4.4 percent YoY and 1.4 percent QoQ to ₹22,205.1 crore.

In the same quarter last year, Wipro's revenue was ₹23,229 crore while in Q2FY24, the IT firm's revenue was ₹22,515.9 crore. In constant currency, revenue dropped by 1.7 percent QoQ and 6.9 percent YoY. Meanwhile, it reported a 1.8 percent quarter-on-quarter (QoQ) increase in its net income to ₹2,690 crore ($323.9 million) for the third quarter of the current financial year (Q3FY24).

Wipro expects revenue from its IT services business segment to be in the range of $2,615 million to $2,669 million for Q4FY24. This translates to sequential guidance of -1.5 percent to +0.5 percent in constant currency terms. In Q3 FY24, Wipro's total bookings came in at $3.8 billion in constant currency, marking a slight 0.2 percent QoQ increase but reflecting a notable 13.5 percent YoY decline.