Wipro shares jump 4% on winning $500 mn contract

Shares of Wipro rose over 4% in opening trade on Friday after the IT major bagged a $500 million contract from a leading U.S.-based communication service provider. The IT heavyweight has maintained an uptrend for the last three sessions and climbed nearly 10% during the same period.

Continuing its gaining streak, Wipro shares opened at ₹470.95, up 2.1% against the previous closing price of ₹461 on the BSE. Extending opening gains, the counter gained as much as 4.3% to ₹481, while the market capitalisation increased to ₹2.5 lakh crore. The stock witnessed strong buying as volume nearly doubled to 6.3 lakh compared to two-week average of 3.88 lakh stocks.

Wipro shares touched its 52-week high of ₹546.10 on February 19, 2024, while it slipped to its 52-week low of ₹375 on October 26, 2023. In the last one year, the stock has risen 19%, whereas it added 14.5% in six months and 3.3% in the past one month.

In a post-market exchange filing on June 6, Wipro said that it has been awarded a $500 million deal by a leading U.S. communication service provider. As part of the deal, the IT major will provide managed services for some products and industry specific solutions. The tenure of the contract is 5 years.

The company, however, did not reveal the name of the client and specific contract details.

Earlier this week, Wipro launched an AI-assisted security and risk platform, Wipro Cyber X-Ray, in partnership with Zscaler, a U.S.-based cloud security company. The Cyber X-Ray empowers enterprise CXOs to make optimised security investment decisions and communicate cyber values to senior leadership and the board.

Last month, the company also announced the expansion of retail-focused capabilities within Wipro VisionEDGE+. This has been developed in partnership with Cisco and AT&T, and leveraging Amazon Web Services (AWS), serves as a comprehensive retail transformation platform designed to unlock the full potential of retail media network.Shares of Wipro rose over 4% in opening trade on Friday after the IT major bagged a $500 million contract from a leading U.S.-based communication service provider. The IT heavyweight has maintained an uptrend for the last three sessions and climbed nearly 10% during the same period.

For the fourth quarter ended March 31, 2024, Wipro reported consolidated net profit at ₹2,385 crore, down 8% from ₹3,074 crore in the corresponding period last year, owing to the challenging macroeconomic environment. The company’s revenue from operations stood at ₹22,210 crore in Q4 FY24, down 4.2% as compared to ₹23,190.3 crore in the same period in FY23. The operating margin of the IT services company during the quarter stood at 16.4%, up by 40 bps (basis points) QoQ.

Going ahead, the company expects revenue from the IT services business segment to be in the range of $2,617 million to $2,670 million, which translates into sequential guidance of -1.5% to +0.5% in constant currency terms.

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