After the business released its results for the December quarter, Wipro’s American Depository Receipts (ADRs) saw a nearly 18% increase on January 12, reaching a high of $6.35, which was close to a 20-month high.
As the company’s December quarter earnings beat predictions, Wipro’s shares increased 10% on January 15 to reach a new 52-week high. The company’s American Depository Receipts (ADRs) also saw a nearly 18% increase, reaching a nearly 20-month high of $6.35 following the release of its results on January 12.
Wipro’s consolidated revenue was Rs 22,205 crore, down 4.4 percent year over year, and the company’s net profit dropped 12 percent to Rs 2,694 crore.Nevertheless, Motilal Oswal analysts see Wipro’s Q3 results favorably, as the business has been struggling to meet expectations for the past few quarters due to macroeconomic headwinds.
Wipro has posted lower profits year over year for the fourth quarter in a row. Analysts anticipate Wipro to continue lagging peers, mainly because of the oddly low correlation between its deal wins and top-line growth.
At 9:16 a.m., Wipro shares were up around 10% on the National Stock Exchange (NSE), trading at Rs 511.95.
Because of the US and European holiday seasons, which affect productivity with furloughs and fewer working days, the third quarter is usually a poor one for IT organizations.Wipro’s revenue loss was anticipated, mainly because of the BFSI vertical’s ongoing downturn and the company’s heavy reliance on consulting during a period of sharply declining discretionary expenditure.
Although analysts do see signs of steady improvements, Nuvama Institutional Equities remarked that Wipro’s lackluster performance and Q4 guidance leave much to be desired.
“We continue to anticipate Wipro to underperform peers, primarily due to its low correlation between deal-wins and top-line growth, not helped by the continuous exits,” concluded the report.
