Shares of India's major IT giant Wipro gained on Wednesday morning after the firm reported robust Q2 results.
Shares of India’s major IT giant Wipro gained on Wednesday morning after the firm reported robust Q2 results. Wipro share price jumped more than 3.29% to hit the day’s high at Rs 251.80 on BSE. Wipro on Tuesday reported a 35% on-year jump in net profit to Rs 2,552 crore in the second quarter of the ongoing fiscal as compared to Rs 1,889 crore in the corresponding period previous fiscal. The software exporter recorded better-than-expected results amid global spending squeeze among its clients. Analysts on an average were expecting the company to earn profit of Rs 2,273 crore, according to Refinitiv data. The revenue stood at Rs 15,125.6 crore for the quarter, marking a rise of 2.78 per cent compared to Rs 14,716.10 crore the previous quarter.
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Taking stock of the reported results, Nomura said that the outlook on BFSI/ Retail looks weak, and improvement in Healthcare and Manufacturing seems some time away. Nomura noted that the growth is expected to lag larger peers. The global firm has maintained a reduce rating on the stock with a target price of Rs 235.
Morgan Stanley said that Wipro’s organic revenue growth guidance of 0.5%- 2.5% for Q3, is softer than its estimates. Wipro is likely to sustain lower P/E multiple. “We trim FY20-22 revenue estimates by 2-5% to reflect weak revenue growth. Morgan Stanley has an underweight rating on the stock with a target price of Rs 230, from Rs 240 earlier.
“We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a year-on-year basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers,” said Abidali Z Neemuchwala, CEO and managing director, Wipro said.
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