IT services major Wipro's American Depository Receipts (ADRs) on January 12 surged almost 18 percent to hit a near-20-month high of $6.35 after the company reported its December quarter earnings.
Wipro's profit rose 1.8 percent sequentially for the December quarter.
The Bengaluru-based company reported a 12 percent year-on-year (YoY) fall in net profit at Rs 2,694 crore for the third quarter of the current financial year. This profit was in-line with Moneycontrol’s poll estimates of Rs 2,706 crore.
It is the fourth consecutive quarter wherein Wipro has reported a fall in profits YoY.
Consolidated revenue came in at Rs 22,205 crore, down 4.4 percent YoY, below analyst estimates of Rs 22,343 crore.
The topline fell by 1.4 percent sequentially for the December quarter.
The Bengaluru-based firm also adjusted its revenue growth guidance for the fourth quarter at both the lower and upper end. It has now guided revenue growth of -1.5 percent to 0.5 percent. This comes after the company slashed the guidance to -3.5 percent to -1.5 percent in the previous quarter.
The EBIT margin, or the operating margin, was down by a marginal 10 bps to 16 percent, impacted by a one-month wage hike and furloughs.
The company won large deals worth $0.9 billion during the quarter, lower than $1.28 billion it won in the last quarter. Total deal wins stood at $3.8 billion, which is similar to what the company had recorded in the September quarter.
Wipro declared an interim dividend of Rs 1 per share.
Shares of the company closed 3.88 percent higher at Rs 465.45 apiece on the BSE on January 12.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
