Wipro ADR jumps nearly 4% after Q4 results beat estimates

Wipro ADR has fallen over 10 percent in the last one month

Wipro ADR (American Depository Receipts) jumped 3.78 percent to $5.36 on the NYSE on April 19 after the IT major’s fourth-quarter earnings beat street estimates.

The net profit fell 8 percent to Rs 2,835 crore in the quarter ended March 2024 from Rs 3,074.5 crore in the year-ago period, beating analysts' estimates of Rs 2,748 crore.

The revenue slumped to Rs 22,208.3 crore in the three months ended March 31, according to an exchange filing on April 19. It reported consolidated revenue of Rs 23,190.3 crore in the year-ago period.

Wipro ADR has fallen over 10 percent in the last one month. However, it has gained over 22 percent in the past one year.

American Depositary Receipt (ADR) serves as a tool for foreign companies to trade on US stock markets, just like regular shares of US companies.

Ahead of the results announcement, Wipro shares ended Friday’s session 1.7 percent higher at Rs 452.1 on the NSE.

The management kept the revenue guidance for the June quarter (Q1FY25) to -1.5 percent to 0.5 percent.

In January, Wipro adjusted its revenue growth guidance for the fourth quarter at both the lower and upper end to -1.5 percent to 0.5 percent. This was after the company slashed the guidance to -3.5 percent to -1.5 percent in October.

“At the moment, it is a tough macroeconomic environment where our clients are also going through a very challenging time, we're staying close to them, we need to be partnering with them at this point,” said Aparna Iyer, the chief financial officer of Wipro.

Meanwhile, on April 18, Infosys ADR tanked 7 percent intraday after the IT services company missed revenue estimates for the quarter ended March 31, 2024. The company had also slashed its revenue guidance to 1-3 percent, below analyst estimates, as weakness continued in discretionary and digital projects.