Introduction:
Shares of IT major Wipro soared by as much as 5.31% to hit an intraday peak of Rs 485.50 per share on Friday. The stock emerged as the top gainer on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). This significant surge followed the company’s announcement of securing a major contract from a leading US communication services provider.
Highlights:
- Deal Announcement: Wipro inked a $500 million deal to provide managed services for specific products and industry solutions over the next five years. The identity of the communication service provider has not been disclosed.
- Share Performance: Wipro’s shares jumped by 5.31%, reaching an intraday high of Rs 485.50.
- Market Position: The stock was the top gainer on both BSE and NSE.
Financial Performance:
- Q4FY24 Results: Wipro reported a net profit of Rs 2,835 crore for the fourth quarter ending March 2024, marking a nearly 8% decrease from the previous year but showing a 5.2% increase quarter-on-quarter.
- Revenue Decline: Revenue for the March quarter saw a 4.2% decline from the same period last year, amounting to Rs 22,208 crore. Sequentially, revenue growth remained stagnant due to ongoing pressures on discretionary spending.
Wipro Secures $500 Million Deal: Shares Surge 5% on BSE and NSE:
Forecast: Wipro’s forecast for revenue from its IT services segment in Q1FY25 ranges between $2.62 billion to $2.68 billion, indicating a sequential guidance of -1.5% to +0.5% in constant currency (CC) terms.
- Revenue in Dollar Terms: Wipro’s IT services revenue saw a 6.6% year-on-year decline and a 0.3% sequential decrease in constant currency, totaling $2.66 billion. Despite this downturn, the company secured significant contract wins exceeding $1.2 billion in total contract value (TCV).
Recent Developments:
AI-Assisted Security and Risk Platform: Earlier this week, Wipro launched an artificial intelligence (AI)-assisted security and risk platform powered by Zscaler.
- Expansion of Retail Capabilities: Last month, Wipro announced the expansion of its retail-focused capabilities within Wipro VisionEDGE+. This platform integrates dynamic digital signage with advanced AI-based solutions, delivering business insights, customer sentiment analytics, and traffic management data tailored to retailers’ specific needs while ensuring compliance with privacy regulations.
Conclusion:
Wipro’s recent $500 million deal has bolstered investor confidence, leading to a significant surge in its stock price. Despite the challenges in revenue growth, Wipro continues to innovate and expand its capabilities, positioning itself for future growth. Investors and market analysts will be closely watching the company’s performance in the upcoming quarters.
FAQ:
1. Why did Wipro’s shares jump by 5%?
Wipro’s shares jumped by 5.31% due to the announcement of a major $500 million contract with a leading US communication services provider. This significant deal boosted investor confidence and led to a surge in the stock price.
2. What was the intraday peak of Wipro’s share price?
Wipro’s share price hit an intraday peak of Rs 485.50 per share on the day of the announcement.
3. Which exchanges saw Wipro as the top gainer?
Wipro emerged as the top gainer on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
4. What is the value and duration of the new contract Wipro secured?
The new contract is valued at $500 million and entails providing managed services for specific products and industry solutions over the next five years.
5. Has Wipro disclosed the identity of the US communication service provider?
No, Wipro has not disclosed the identity of the communication service provider involved in the $500 million deal.
6. What were Wipro’s financial results for Q4FY24?
Wipro reported a net profit of Rs 2,835 crore for Q4FY24, which is a nearly 8% decrease from the previous year. However, it showed a 5.2% increase quarter-on-quarter. Revenue for the March quarter was Rs 22,208 crore, a 4.2% decline from the same period last year.
7. What is Wipro’s revenue forecast for Q1FY25?
Wipro’s revenue forecast for its IT services segment in Q1FY25 ranges between $2.62 billion to $2.68 billion, indicating a sequential guidance of -1.5% to +0.5% in constant currency (CC) terms.
8. How did Wipro’s IT services revenue perform in dollar terms?
In dollar terms, Wipro’s IT services revenue saw a 6.6% year-on-year decline and a 0.3% sequential decrease in constant currency, totaling $2.66 billion.
9. What recent innovations and expansions has Wipro announced?
Recently, Wipro launched an AI-assisted security and risk platform powered by Zscaler. Additionally, it expanded its retail-focused capabilities within Wipro VisionEDGE+, which integrates dynamic digital signage with AI-based solutions for business insights, customer sentiment analytics, and traffic management data.
10. How significant were Wipro’s recent contract wins?
Despite the revenue downturn, Wipro secured significant contract wins exceeding $1.2 billion in total contract value (TCV), indicating strong business momentum.
These FAQs cover the essential details about Wipro’s recent share surge and the financial and business context surrounding it.
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