Shares of IT major surged as much as 2.9% to hit an intraday high of ₹466 apiece on the BSE, after the software services company reported higher than expected top and bottom lines in the March quarter of FY24.

The scrip opened lower at ₹452.50, as against the previous closing price of ₹452.85. The share price however soon gained momentum in line with the broader market. At 1:58 pm, the share price of the company was trading 1.63% higher at ₹460.25. This was in line with the broader BSE Sensex, which was trading 386.19 points or 0.53% higher at 73, 474.52. 

The company's market capitalisation stood at ₹2,40,436 crore with more than 5.79 shares exchanging hands on the BSE, higher than the previous closing price of 5.01 lakh shares. The stock hit a 52-week high of ₹546.10 on February 19 this year, whereas a 52-week low of ₹363 on April 21 last year.

In the past one month and three months, the counter has declined 5.65% and 3.88%, respectively. In the year-to-date period, the counter has declined 3.72%.

Despite beating analysts' estimates, in the January to March quarter of FY24, the company’s consolidated net profit declined by 8% to ₹2,385 crore, as against ₹3,074 crore in the corresponding period last year, owing to the challenging macroeconomic environment. The company’s revenue from operations during the quarter under review stood at ₹22,210 crore, 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.

“We are on the brink of a major technological shift. Artificial intelligence is transforming our client’s needs as they seek to harness its power for competitive advantage and enhanced business value. At Wipro, we have been gearing up for this moment," says Srini Pallia, CEO and Managing Director, Wipro.

The company expects revenue from the IT services business segment to be in the range of $2,617 million to $2,670 million. “This translates sequential guidance of (-) 1.5% to +0.5% in constant currency terms,” the company says.

Following the Q4 results, brokerage firm Nomura has a ‘reduce’ call on the company’s stock, with a target price of ₹410. The brokerage firm believes that the improvement in the Bengaluru-headquarter margin is likely to moderate going forward in FY25.

Meanwhile, analyst at the brokerage firm HSBC, while reducing the target price to ₹385, feels that the signs of operational improvement are still not imminent owing to the continued loss of the company’s market share.

Brokerage firm Nuvama has given a hold call with a target price of ₹460.

(DISCLAIMER: The views and opinions expressed by investment experts on are either their own or of their organisations, but not necessarily that of and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)

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