Wipro shares rise over 5% on securing $500-million order from US communication service provider

In a filing to the stock exchanges on Thursday, June 6, the company said that it has been awarded a contract worth $500 million by a leading US communication service provider. Wipro will provide managed services for some products and industry specific solutions for a period of five years, as per the contract.

Wipro Ltd shares rallied as much as 5.5% to hit an intraday high of ₹486.4 apiece on the NSE. However, the IT stock pared early gains to trade 5.3% higher at ₹485.45 apiece at 11:38 am.

Earlier this week, on June 4, the IT major informed the exchanges that it has partnered with Zscaler to introduce Wipro Cyber X-Ray, an AI-assisted decision support platform. The company’s Wipro Cyber X-Ray empowers enterprise Chief Experience Officer to make optimised security investment decisions and communicate cyber values to senior leadership and the board.

The company informed the exchanges about its financial results for the quarter and fiscal ended March 31, 2024, on April 19. The company’s consolidated revenue from operations for the March quarter fell more than 4% to ₹22,208 crore compared to ₹23,190 crore in the corresponding quarter of the preceding fiscal. The IT services company’s revenue from operations for the March quarter remained flat on a quarter-on-quarter (QoQ) basis compared to ₹22,205 crore in Q3FY24.

Its net profit for the March quarter fell nearly 8% to ₹2,858.2 crore compared to ₹3,093.5 crore in the same quarter of the preceding fiscal. Sequentially, the company’s net profit grew nearly 6% from ₹2,700.6 crore in the December quarter.

Revenue from operations for FY24 decreased marginally by 0.8% to ₹89,760 crore compared to ₹90,488 crore in the preceding fiscal. The company’s net profit for the full financial year 2023-24 decreased 2% to ₹11,112 crore compared to ₹11,367 crore in FY23.