Wipro share price gained 13.10 percent to hit a high of Rs 511.95 on BSE on Monday after the company announced its Q3 results. The IT major reported a net profit of Rs 2,903 crore for the quarter ended December 2023, exceeding analysts' expectations of Rs 2,664 crore. Revenue from IT services stood at Rs 22,127 crore, up 1.7 percent from the previous quarter.
Analysts said the strong results were driven by Wipro's focus on its core businesses and its cost-cutting measures. The company has been focusing on its digital offerings and cloud services, which are in high demand. Wipro has also been able to reduce its operating expenses, which has helped to improve its margins.
“Wipro's Q3 performance suggests inflection. The company has been able to beat estimates on both the top line and bottom line. This is a positive sign for the company going forward,” said analyst at Jefferies India.
Factors behind the surge in Wipro share price:
- Strong Q3 results: Wipro's Q3 results were better than expected, which boosted investor confidence in the company.
- Focus on core businesses: Wipro's focus on its core businesses of IT services and digital offerings is paying off.
- Cost-cutting measures: The company's cost-cutting measures have helped to improve its margins.
- Positive outlook for the IT sector: The outlook for the IT sector is positive, which is also benefiting Wipro.
Wipro's future prospects
Analysts are positive on Wipro's future prospects. The company is well-positioned to benefit from the growing demand for digital services. Wipro is also focusing on expanding its presence in international markets, which will further drive growth.
“Wipro is a good long-term bet. The company has a strong track record of execution and is well-positioned to benefit from the growth of the IT sector,” said analyst at Edelweiss Securities.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a financial advisor before making any investment decisions.