 "Wipro share zooms 5% on inking $500 million deal, top gainer on BSE, NSE")
Wipro stock jumps: Shares of IT major Wipro soared as much as 5.31 per cent to hit an intraday peak of Rs 485.50 per share on Friday.
The share also emerged as the top gainer on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The surge in stock came following the company's announcement of securing a major contract from a leading US communication services provider.
Valued at $500 million, the deal entails Wipro providing managed services for specific products and industry solutions over the course of five years.
Valued at $500 million, the deal entails Wipro providing managed services for specific products and industry solutions over the course of five years.
However, Wipro did not disclose the identity of the said communication service provider.
Wipro Financial performance
Bengaluru-based IT services giant Wipro reported a net profit of Rs 2,835 crore for the fourth quarter ending March 2024 (Q4FY24), marking a nearly 8 per cent decrease from the previous year. However, it showed a 5.2 per cent increase quarter-on-quarter.
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Revenue for the March quarter saw a 4.2 per cent 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'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 per cent to +0.5 per cent in constant currency (CC) terms.
In dollar terms, Wipro's IT services revenue saw a 6.6 per cent year-on-year decline and a 0.3 per cent sequential decrease in constant currency, totalling $2.66 billion. This downturn occurred despite significant contract wins exceeding $1.2 billion in total contract value (TCV).
Earlier this week, the company launched an artificial intelligence (AI)-assisted security and risk platform, powered by Zscaler.
Last month, Wipro announced expanding its retail-focused capabilities within Wipro VisionEDGE+. Wipro VisionEDGE+ integrates dynamic digital signage with advanced artificial intelligence (AI)-based platforms, delivering business insights, customer sentiment analytics, and traffic management data tailored to the specific needs of retailers while ensuring compliance with privacy regulations.
The market capitalisation of Wipro is Rs 2,54,113.10 crore, according to Bombay Stock Exchnage (BSE).
At 11:01 AM, Wipro shares were trading 5.21 per cent higher at Rs 485 per share. By comparison, BSE Sensex was trading a little over 1 per cent higher at 75,843.80 levels.