Wipro Shares Surge 13% Despite Profit Decline, Q3 Results Beat Estimates


January 15, 2023

New Delhi, India

Wipro’s SharesSurges After Q3

In a surprising turn of events, Wipro’s shares experienced a significant surge of 13%, reaching a 52-week high after the announcement of its Q3 results. While the market initially responded positively, several concerns persist, indicating a complex scenario in the IT sector.

Positive Momentum Despite Profit Dip

Despite a 12% YoY decline in net profit and a 1.2% sequential drop, Wipro‘s stock soared as its Q3 results surpassed market estimates. The surge was also mirrored in the company’s American Depository Receipts (ADRs), reaching a near-20-month high.

Consistent Profit Decline Raises Eyebrows

Wipro’s Q3 performance marks the fourth consecutive quarter of declining profits on a YoY basis. Analysts express concerns over this consistent trend, and market experts anticipate the underperformance to persist.

Revenue Challenges in Constant Currency Terms

The company’s consolidated revenue from operations witnessed a 4.4% YoY and 1.4% QoQ decline. In constant currency terms, revenue dropped by 1.7% QoQ and 6.9% YoY, posing challenges for the company in the competitive IT landscape.

Guidance for Q4 and Expectations

Wipro’s guidance for Q4FY24 signals a cautious outlook, with an expected sequential revenue decline ranging from -1.5% to +0.5% in constant currency terms. This guidance has led market experts to anticipate continued challenges for the company.

CEO’s Perspective and Positive Signals

Thierry Delaporte, CEO and Managing Director of Wipro, acknowledged the seasonally soft quarter but highlighted strong deal booking momentum. Positive signs of growth in consulting were evident with double-digit growth in order bookings in the Capco business.

Market Reaction and Sector-Wide Impact

Following Wipro‘s surge, the entire Nifty IT index experienced a 2.5% jump, with other IT peers like Tech Mahindra, HCL Tech, TCS, and Infosys also seeing increases in their stock prices. This positive market reaction hints at a broader sector-wide impact.

Check All Q3 Results 


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