Wipro shares climb nearly 2% after earnings announcement

New Delhi: Shares of Wipro on Monday climbed nearly 2 per cent in early trade after the company reported a better-than-expected 2.8 per cent rise in consolidated net profit for the December 2022 quarter.

The stock gained 1.81 per cent to Rs 400.80 apiece on the BSE.

At the NSE, it climbed 1.80 per cent to Rs 401 apiece.

Wipro Ltd on Friday reported a better-than-expected 2.8 per cent rise in consolidated net profit for the December 2022 quarter to Rs 3,053 crore and exuded optimism about "strong" bookings for the fourth quarter despite global headwinds.

The company's Q4 guidance, however, came below analysts' expectations. Wipro said its IT services revenue is expected to grow in the range of -0.6 per cent to 1 per cent sequentially in constant currency in the quarter ending March 2023.

The Bengaluru-based company expects revenue from the IT services business for the full year to be in the range of 11.5-12 per cent in constant currency terms.

The revenues of Wipro - which competes with TCS, Infosys, HCL Tech and others in the market - stood at Rs 23,229 crore in Q3FY23, 14.3 per cent higher than the same period of the previous year.

Sequentially, the revenue grew about three per cent over the September quarter, while the net profit rose 14.8 per cent quarter-on-quarter.

Brokerage firm Emkay Global Financial Services said that while IT services margin beat estimates, Q4 guidance is "below expectation".