Wipro Surprises with Strong Q3 Earnings, Shares Jump 8%
Information Technology major Wipro reported better-than-expected earnings for the third quarter, exceeding market expectations across key metrics. Notably, the company achieved a three-year high in operating margins, driven by continued operational efficiencies and cost optimization. This strong performance, particularly amidst a seasonally weak quarter, has garnered positive feedback from brokerages.
Wipro’s consolidated net profit for the December quarter rose 4.5% quarter-on-quarter to Rs 3,354 crore, while revenue saw a slight increase of 0.1% to Rs 22,319 crore. These results significantly surpassed the expectations of nine brokerages polled by Moneycontrol, who had predicted a 5% decline in net profit and a 0.6% drop in revenue.
The IT giant’s EBIT margin reached 17.5%, the highest level in three years, marking the fourth consecutive quarter of margin expansion. CFO Aparna Iyer attributed this success to operational efficiencies and cost optimization initiatives.
Brokerage firm Nomura commended Wipro’s strong performance across all parameters, particularly its impressive margin expansion. The firm maintained its ‘buy’ call on the stock with a target price of Rs 340 and raised its FY25-27 earnings-per-share estimates by 2-5%.
On the back of these positive results, Wipro shares opened nearly 8% higher on January 20, trading at Rs 303.75 per share at 09.27 am on the NSE.
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