Wipro shares rose nearly 4%
on Friday after the IT firm’s second-quarter revenue beat
estimates and the company signaled that delayed large deals
could support growth in coming quarters, outweighing concerns
over weak deal bookings and a subdued near-term outlook.
The stock was trading at ₹180.76, its highest since September 1, and was set for its fourth straight session of gains.
Wipro said its second-quarter revenue rose to ₹24,753 crore, above analysts’ expectations of ₹24,627 crore.
The Bengaluru-headquartered company forecast third-quarter
revenue growth of between a 1.5% decline and a 0.5% rise in
constant currency terms and reported a 45% drop in total
bookings to $2.6 billion from a year earlier.
The results add to signs of a gradual stabilisation in
India’s $315 billion IT services sector after a prolonged
slowdown in client spending. Shares of larger peers Tata
Consultancy Services and HCLTech also rose
strongly after their results, as investors warmed to signs of
recovering demand and AI-related spending.
Jefferies said revenue and margins exceeded expectations and
cited management’s comments that two delayed large deals are
expected to close this quarter, helping improve the growth
outlook.
Dolat Capital said the quarter reflected stable revenue
performance and improving profitability, adding that better deal
conversions could lift growth in the second half of the fiscal
year.
Emkay Global said a robust pipeline and the expected closure
of delayed deals could support stronger revenue momentum in
subsequent quarters.
Wipro shares have shed nearly 32% so far this year, compared with a 17% drop in the IT index.