IT major’s shares surged by 2.9% to reach an intraday high of ₹466 apiece on the BSE after reporting better-than-expected results for the March quarter of FY24. The company’s stock opened lower at ₹452.50 but quickly gained momentum, trading at ₹460.25 by mid-afternoon.
Despite a challenging macroeconomic environment, the company’s consolidated net profit declined by 8% to ₹2,385 crore in the January to March quarter of FY24. However, the operating margin improved to 16.4%, up by 40 basis points quarter-on-quarter.
Wipro’s CEO and Managing Director, Srini Pallia, highlighted the company’s readiness for the technological shift, particularly in artificial intelligence. The company expects revenue from the IT services business segment to be in the range of $2,617 million to $2,670 million for the upcoming period.
Following the Q4 results, brokerage firms have mixed opinions on Wipro’s stock. Nomura has a ‘reduce’ call with a target price of ₹410, citing potential moderation in margins. HSBC reduced the target price to ₹385, expressing concerns about operational improvements and market share loss. Nuvama, on the other hand, has a hold call with a target price of ₹460.
Investors are advised to consult certified experts before making any investment decisions. The company’s stock performance will be closely watched in the coming days as it navigates through the evolving technological landscape and market dynamics.