Wipro share price gains on bagging 5-year contract from Fortum
Wipro will manage Fortum's application portfolio across hundreds of applications for more than 11,500 users across 18 countries.
October 20, 2020 / 11:25 AM IST
Wipro share price added over a percent intraday on October 20 after the IT firm won an Application Management (AMS) and Services Integration & Management (SIAM) contract from Fortum in Finland.
As a part of the five-year agreement, Wipro will manage Fortum's application portfolio across hundreds of applications for more than 11,500 users across 18 countries and provide 24/7 support for business-critical applications.
It will leverage its artificial intelligence and automation platform, Wipro HOLMES, to enable process automation for enhanced end-user experience. In addition, Wipro's SIAM transformation solution will help Fortum consolidate and govern its multi-supplier eco-system.
Fortum is a European energy company with activities in more than 40 countries. It provides customers with electricity, gas, heating and cooling as well as smart solutions to improve resource efficiency.
At 1107 hours, the Wipro stock was trading at Rs 348.95, up Rs 5.70, or 1.66 percent. It has touched an intraday high of Rs 349.20 and an intraday low of Rs 342.25.
Wipro registered a 3.2 percent sequential growth in consolidated profit for the quarter ended September 2020, with IT services segment earnings coming ahead of analysts' estimates on all front. The rupee revenue of IT services segment grew by 1.2 percent to Rs 14,768.1 crore in Q2FY21.
The company also announced a share buyback of Rs 9,500 crore. It plans to purchase up to 23.75 crore equity shares, representing 4.16 percent of the paid-up equity, from shareholders on a proportionate basis by way of a tender offer.