Shares of Wipro zoomed 9 per cent on Friday, adding Rs 10,777.7 crore to its market valuation, after the company posted a 27.7 per cent jump in consolidated net profit at Rs 2,972 crore for the March 2021 quarter, and exuded confidence of sustaining strong growth momentum in the coming quarters. The stock jumped 9.86 per cent to Rs 473.50 — its 52-week high — on the BSE during the day. It later closed at Rs 469.25, a gain of 8.87 per cent.
On the National Stock Exchange (NSE), it rallied 8.99 per cent to close at Rs 469.45. The company’s market valuation also rallied Rs 10,777.7 crore to Rs 2,57,108.70 crore on the BSE.
The results were announced after market hours on Thursday. In traded volume terms, 50.49 lakh shares were traded on the BSE and over 10.93 crore shares on the NSE during the day.
“Strong Q4 FY21 show by Wipro along with robust double-digit growth guidance led Wipro to gain today," Binod Modi, head (strategy) at Reliance Securities. Wipro had registered a net profit (attributable to equity holders) of Rs 2,326.1 crore in the year-ago period, according to the Indian Accounting Standards (Ind-AS).
Its revenue from operations rose 3.4 per cent to Rs 16,245.4 crore in the reported quarter, from Rs 15,711 crore in the year-ago period. Wipro, which gets a bulk of its topline (revenue) from IT services, said it expects revenues from that unit to be in the range of USD 2,195 million-USD 2,238 million in the June 2021 quarter. This translates into a sequential growth of 2-4 per cent.
Wipro’s IT services segment revenue was at USD 2,152.4 million in the March quarter, a sequential growth of 3.9 per cent. “Our Q4 performance was built on top of our momentum that we saw in the last quarter. We have reported a solid growth in revenue, healthy order booking and great execution, resulting in robust margins.
“This truly sets the stage for the next quarter and the next financial year," Wipro CEO and Managing Director Thierry Delaporte told reporters. He added that a revenue of 3.9 per cent in reported terms and 3 per cent in constant currency terms is at the top quartile of its guidance range.