The American Depository Receipts (ADRs) of Wipro, listed on the New York Stock Exchange (NYSE) surged over 4 percent following the company's better-than-expected Q3 numbers on January 17. The information technology major's net profit as well as revenue came in well above the Street's estimates while margins surged to a three-year high, bolstering sentiment.
At 10.03 Indian Standard Time, ADRs of Wipro were trading 4.2 percent higher at $3.44 on the NYSE.
Wipro posted a 4.5 percent on-quarter rise in consolidated net profit at Rs 3,354 crore for the December quarter while revenue grew a marginal 0.1 percent to Rs 22,319 crore. A Moneycontrol poll of nine brokerages had anticipated a 5 percent quarterly decline in net profit to Rs 3,040 crore and a 0.6 percent drop in revenue to Rs 22,176 crore.
Meanwhile, operational efficiencies and cost optimisation helped the IT major improve its EBIT margin to 17.5 percent, the highest in three years. This also marked the fourth straight quarter of margin expansion for Wipro, CFO Aparna Iyer highlighted.
Also Read | Wipro Q3 net profit rises 4.5% QoQ to Rs 3,354 crore, beats estimates; margin at 3-year high
On the other hand, Wipro's IT services revenue for the quarter declined by 1.2 percent sequentially to $2.63 billion. However, in constant currency terms, it grew by 0.1 percent quarter-on-quarter, meeting the upper end of the company’s guidance. Looking ahead, Wipro guided Q4 IT services revenue to grow in the range of -1 to 1 percent in constant currency terms, aligned with market expectations.
Moreover, deal bookings also stood steady in Q3. Total bookings for the quarter stood at $3.5 billion, with large deal bookings rising 6 percent on-year to $961 million. Wipro also secured 17 large deals in the quarter gone by, with a total contract value of $1 billion.
Wipro had released its Q4 numbers after Indian market hours on January 17 and its shares ended over 2 percent lower at Rs 281.95 on the NSE.
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