Two days following the announcement of its Q3 results, global IT company Wipro witnessed a significant increase in its share prices, targeting a rise of about 14 percent.
IT and tech businesses are gaining ground on the stock market as the quarterly results season approaches, with multinational corporation Wipro being the top gainer on Monday. On January 15, just two days after the company’s Q3 earnings were released, Wipro shares increased by 14%.
Wipro’s share prices increased by 14% on Monday, the first trading day following the release of the IT company’s quarterly results. As a result of the stock market boom, the company’s total market capitalization increased by more than ₹2.61 lakh crore.
Wipro released its Q3 earnings on Friday, revealing a nearly 12% drop in consolidated net profit to ₹2,694.2 crore in the December quarter due to a “cautious” market climate and cautious investment decisions from clients.
Wipro saw its market cap leap up by ₹18,168 crore on Monday, increasing to ₹2,61,217.37 during the early trade hours. Today, the stock on the NSE and BSE reached its 52-week high, rising 13.65 percent and 13.10 percent, respectively.
Out of all the companies, Wipro emerged as the largest gainer on the NSE Nifty and BSE Sensex, with Tech Mahindra, Infosys, HCL Technologies, and Tata Consultancy Services lagging marginally behind.
This occurs after Nifty was recorded above 22,000 points today, while Sensex crossed the 73,000 point threshold for the first time in its history on January 15. The rapid increase in the stock prices of IT businesses caused a rally in the Indian stock market.
Highlights of the Wipro Q3 results
On Friday, January 12, Wipro released its earnings for the December quarter, revealing a 12% decline in net profit year over year (YoY) to ₹2,694 crore. Notably, this is the fourth straight quarter that Wipro has reported a decline of profits.
The company’s total revenue was reported at ₹22,205 crore, a decrease of approximately 4.4% year over year. On Friday, the Bengaluru-based company also revised its sales increase for the previous quarter.
Wipro currently has a targeted revenue growth of -1.5 percent to 0.5 percent for the fourth quarter of the financial year, ending in March 2024. Additionally, for the December quarter, the topline decreased by 1.4 percent on a sequential basis.
