Wipro announces 1:1 bonus issue; share surges 4% on the back of strong Q2 results
Oct 18, 2024, 15:07 IST
Shares of IT behemoth and the country's fourth-largest IT company, Wipro, surged nearly 4% today after the company's board of directors approved a 1:1 bonus issue. This also comes on the back of positive Q2 results declared by the company yesterday.
The company's deal book saw a 28.8% QoQ and 16.8% YoY growth as its revenue grew to Rs 22,300 crore during the quarter and profits jumped to Rs 3,210 crore during the second quarter of FY25.
Yesterday, the company posted a solid 21.2% YoY rise in its consolidated net profits, which stood at Rs 2,646.3 crore in the year-ago period. The company's revenue from the IT services segment was at $2660.1 million, an increase of 1.3% QoQ and a decrease of 2.0% YoY.
For the quarter ending December 31, 2024, the company expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million.
Wipro CEO and MD Srini Pallia said that Q2 was driven by strong execution, which enabled the Bengaluru-based firm to meet its expectations for revenue growth, bookings, and margins.
"We continued to expand our top accounts; large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as in BFSI, consumer, technology, and communications sectors," he said.
Total bookings for the quarter stood at $3,561 million, while large deal bookings were at $1,489 million, an increase
of 28.8% QoQ and 16.8% YoY.
The company's revenue from operations for the reporting quarter took a hit and stood at Rs 22,301.6 crore, a slight decline from Rs 22,515.9 crore in the year ago period. Pallia further noted that the company's revenue for the October-December quarter is expected to be affected by seasonal furloughs and fewer working days.
As for sectoral contribution to the quarter's revenue, a maximum of 34.8% came from banking, financial services, and insurance. On the other end of the spectrum, manufacturing contributed the least at 6.2%.
While the record date for bonus issue will be announced later, the credit of these bonus shares, priced at Rs 2 each, will be completed by December 15, 2024.
Brokerage firm Nomura accords a "buy" rating to Wipro, with a target price of Rs 680/share. As of 2:50 pm today, the stock was trading at Rs 552.50.
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The company's deal book saw a 28.8% QoQ and 16.8% YoY growth as its revenue grew to Rs 22,300 crore during the quarter and profits jumped to Rs 3,210 crore during the second quarter of FY25.
Yesterday, the company posted a solid 21.2% YoY rise in its consolidated net profits, which stood at Rs 2,646.3 crore in the year-ago period. The company's revenue from the IT services segment was at $2660.1 million, an increase of 1.3% QoQ and a decrease of 2.0% YoY.
For the quarter ending December 31, 2024, the company expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million.
Wipro CEO and MD Srini Pallia said that Q2 was driven by strong execution, which enabled the Bengaluru-based firm to meet its expectations for revenue growth, bookings, and margins.
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Total bookings for the quarter stood at $3,561 million, while large deal bookings were at $1,489 million, an increase
of 28.8% QoQ and 16.8% YoY.
The company's revenue from operations for the reporting quarter took a hit and stood at Rs 22,301.6 crore, a slight decline from Rs 22,515.9 crore in the year ago period. Pallia further noted that the company's revenue for the October-December quarter is expected to be affected by seasonal furloughs and fewer working days.
As for sectoral contribution to the quarter's revenue, a maximum of 34.8% came from banking, financial services, and insurance. On the other end of the spectrum, manufacturing contributed the least at 6.2%.
While the record date for bonus issue will be announced later, the credit of these bonus shares, priced at Rs 2 each, will be completed by December 15, 2024.
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Brokerage firm Nomura accords a "buy" rating to Wipro, with a target price of Rs 680/share. As of 2:50 pm today, the stock was trading at Rs 552.50.