Wipro shares rose over 13% to a 52-week high of Rs 529 in early trading. That was despite disappointing Q3 results.
Wipro shares soared nearly 13% in early trade on Monday, reaching a 52-week high of Rs 529, despite weaker-than-expected third-quarter results.
The gain in Wipro’s shares is due to a 17% increase in its American Depository Receipts.
The higher end of Wipro’s planned range saw revenue decline in Q3, a turning point. Analysts consider this a major change following three quarters of lower bands.
IT revenue fell 1% to Rs 22,151 crore. The IT business’s EBIT margin was 16%, down from 16.1% in the previous quarter.
CAPCO, Wipro’s consultancy division, posted double-digit booking growth, boosting optimism. This is a quantifiable evidence of a discretionary expenditure resurgence, which has impacted Wipro’s performance.
Wipro’s strategies for partner ecosystem growth and operational improvements are receiving notice. After three quarters of 6% quarterly revenue decline, the company’s trajectory is rebounding.
Despite optimistic comments about its consulting business, Wipro nevertheless confronts deal market-share losses to peers and vertical declines. Despite these obstacles, Wipro’s Q3 performance above street forecasts, lifting its stock.
Wipro shares rose 6.50% to Rs 495.70 at 11:04 am.
Conclusion
Despite disappointing Q3 results, Wipro shares soared 13% to a 52-week high of Rs 529 in early trading. American Depository Receipts rose 17%. The higher end of Wipro’s planned range saw revenue degrowth in Q3, a turning point. CAPCO’s consultancy sector saw double-digit booking growth, suggesting discretionary spending may recover.
Despite deal market-share losses and vertical decrease, Wipro’s Q3 performance beat forecasts, lifting its stock.Despite disappointing Q3 results, Wipro shares soared 13% to a 52-week high of Rs 529 in early trading. American Depository Receipts rose 17%. The higher end of Wipro’s planned range saw revenue degrowth in Q3, a turning point. CAPCO’s consultancy sector saw double-digit booking growth, suggesting discretionary spending may recover. Despite deal market-share losses and vertical decrease, Wipro’s Q3 performance beat forecasts, lifting its stock.
