Wipro shares surge nearly 8% on better-than-expected Q2 earnings

Wipro on Wednesday posted a 17 per cent jump in consolidated net profit to 2,930.6 crore for the quarter ended September 30, 2021. The company posted a net profit of 2,484.4 crore in the same period a year ago.

Wipro shares rose nearly 8 per cent on Thursday, a day after it posted a 17 per cent jump in consolidated net profit for the second quarter. Wipro shares jumped 7.59 per cent to their 52-week high of 723.65 on BSE and gained 7.62 per cent to their 52-week high of 723.90 on the National Stock Exchange (NCB).

The IT services company on Wednesday posted a 17 per cent jump in consolidated net profit to 2,930.6 crore for the quarter ended September 30, 2021. The company posted a net profit of 2,484.4 crore in the same period a year ago. Wipro said that it has surpassed the $10 billion (around 75,300 crore) annualised revenue run rate and is in a position to hire 25,000 people in the next financial year.

The consolidated revenue of Wipro increased by about 30 per cent to 19,667.4 crore during the quarter compared to 15,114.5 crore it registered in the corresponding quarter of 2020-21. “The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5 per cent organic sequential growth for a second quarter in a row, resulting in a 28 per cent YoY growth in the first half of this financial year,” Wipro CEO and MD Thierry Delaporte said.

The company also forecast revenue growth in the December quarter to be in the range of 2 per cent to 4 per cent on improving demand for digital transformation-related services. Wipro said it expects an increase in digital-oriented and other strategic deals. Its IT services revenue rose to 193.80 billion compared with 147.68 billion a year earlier.

“Wipro has registered healthy growth in revenues on an organic basis. The company, under the new CEO, is on the verge of a turnaround,” analysts at IDBI Capital wrote in a note, according to Reuters.

Motilal Oswal analysts said they see Wipro’s guidance as positive and that the management’s growth strategy, continued investment in talent and simplified operational model have started to benefit the company.

(With agency reports)

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