Wipro share price jumped over 8% on Monday's session after the IT giant's strong Q3 Results. Wipro on Friday reported an 24.5% year-on-year rise in its consolidated net profit (attributable to equity holders of the company) for the fiscal's third quarter ended December (Q3FY25) to ₹3,353.8 crore. The company had reported a profit of ₹2,694.2 crore in the year-ago period. Sequentially, the consolidated net profit was up 4.5%. Wipro shares ended at ₹281.80 apiece, down 2.17% on BSE.
The IT company's consolidated revenue from operations stood at ₹22,319 crores during the quarter ended December (Q3FY25) from ₹22,205 crore in Q3FY24, a year-on-year rise of nearly 1%. Sequentially, the growth was flat at ₹22,302 crore in Q2FY25.
On Friday, Wipro filed a regulatory filing announcing an interim dividend of ₹6 per share. As of January 28, 2025, the record date, the company's members will receive an interim dividend of ₹6 per equity share of par value at ₹2 each. The board of Wipro has also approved a modified capital allocation strategy that raises the committed payout percentage to 70% or higher over a three-year period.
Wipro's CEO and Managing Director Srinivas Pallia mentioned that clients are cautiously optimistic and noted a gradual return of discretionary spending. For the upcoming March quarter, Wipro anticipates revenue from its IT services segment to fall within the range of USD 2,602 million to USD 2,655 million, indicating a potential sequential decrease of 1% or an increase by 1%.
In Q3FY25, Wipro's workforce decreased by 1,157, marking a reversal from two quarters of employee growth. The headcount was recorded at 232,732 in Q3 FY25, down from 233,889 in Q2FY25 and 239,655 in Q3FY24. The company plans to hire between 10,000 and 12,000 freshers for the next financial year.
Wipro share price today opened at ₹300 apiece on the BSE, the stock touched an intraday high of 305.35 per share, and an intraday low of ₹296.85 apiece.
Riyank Arora, Technical Analyst, Mehta Equities Ltd highlighted that the stock has given a breakout above its trendline resistance mark of 297 and showing some signs of momentum and strength. With immediate anchor VWAP support being near 294, it appears that the stock is all set for a move towards 309 and 315. A set stoploss should be kept at 290 mark to manage risk well on this trade.
The brokerage claims that Wipro exceeded expectations and produced respectable Q3FY25 results. In contrast to their/Street's forecasts of -0.6%/-0.5% CC QoQ, IT services revenue increased by 0.1% CC QoQ/-0.7% CC YoY. The IT Services EBIT margin exceeded expectations by a significant margin, coming in at 17.5%, +70bp QoQ.
“Wipro’s results were in line with our recent upgrade thesis, which was based on its favourable portfolio mix and strong margin performance. We are upgrading FY25E/26E estimates by +5%/+2% on higher margins. We are updating FY26/27 USDINR assumption to 86.5. Maintain ‘BUY’ with unchanged target price of ₹350,” the brokerage said.
The brokerage claims that Wipro exceeded expectations and produced respectable Q3FY25 results. In contrast to their/Street's forecasts of -0.6%/-0.5% CC QoQ, IT services revenue increased by 0.1% CC QoQ/-0.7% CC YoY. The IT Services EBIT margin exceeded expectations by a significant margin, coming in at 17.5%, +70bp QoQ.
“We have raised our FY25E EPS by ~5% to factor in the margin beat and kept FY26E/FY27E EPS broadly unchanged after its 3Q print. We reiterate our Neutral rating as we view the current valuation as fair. Our TP of INR290 implies 22x FY27E EPS,” the brokerage said.
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