Wipro: Strong operating margin, cash position offer comfort to investors

Going ahead, a good order book, a strong deal pipeline and the company's continued focus on cost optimisation are expected to help

Following the positive June 2020 quarter (Q1) results, announced on Tuesday after market hours, shares of Wipro surged by 15.5 per cent on Wednesday, outperforming the Sensex, which ended flat. The sharp uptick in Wipro’s stock, which was the top gainer in the Nifty IT index, also rubbed off on other IT companies, with the sectoral index jumping 5 per cent.

While Wipro’s strong margin performance and robust free cash flow — giving hints of higher returns to shareholders — were key positives from the Q1 results, the new managing director and chief executive officer’s (MD & CEO’s) confidence in delivering