Wipro shares jump nearly 10% on strong Q4 results

New Delhi: Shares of Wipro zoomed nearly 10 per cent in morning trade on Friday 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 9.51 per cent to Rs 472 - its 52-week high - on the BSE. At the NSE, it rallied 9.67 per cent to Rs 472.35 - its one-year high. The results were announced after market hours on Thursday. Wipro had registered a net profit (attributable to equity holders) of Rs 2,326.1 crore in the year-ago period, as per Indian Accounting Standards (Ind-AS).

Its revenue from operations rose by 3.4 per cent to Rs 16,245.4 crore in the reported quarter, from Rs 15,711 crore in the same period last fiscal. Wipro - which gets a bulk of its topline from IT services — said it expects revenues from that unit to be in the range of $2,195 to $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 $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 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.