Why Indian IT Major Wipro Shares Are Higher Today

Technology services and consulting company Wipro Ltd WIT shares are trading higher after the company reported third-quarter results.

The company reported gross revenue of INR222.1 billion ($2.67 billion), down 1.4% Q/Q, missing the consensus of $2.75 billion. EPS of $0.06 were in line with the consensus.

IT Services revenue declined by 2.1% Q/Q to $2.66 billion. Non-GAAP constant currency IT Services segment revenue decreased by 1.7% Q/Q.

IT Services’ operating margin for the quarter was 16.0%, down 11 bps Q/Q. Net income was INR26.9 billion ($323.9 million), up 1.8%. Operating cash flow was at INR47.9 billion ($575.7 million).

Total bookings stood at $3.8 billion, up 0.2% Q/Q, with large deal bookings worth $0.9 billion in Q3.

WIT declared an interim dividend of INR1 ($0.012) per equity share/ADS.

Q4 Outlook: Wipro sees IT Services business revenue of $2.615 billion – $2.669 billion, (-1.5)% to (+0.5)% Q/Q in constant currency terms. Total revenue consensus was $2.67 billion.

Thierry Delaporte, CEO and Managing Director said, “Under our ai360 strategy, AI is now embedded across most of our existing solutions and client offerings. We’re deploying AI internally across all business and functional areas as well, with the goals of efficiency, productivity, and scale. We are confident that these investments will allow us to capitalize on emerging opportunities, as the macro environment improves.” 

Price Action: WIT shares are up by 17.04% at $6.28 on the last check Friday.