Shares of Wipro jumped nearly 17 per cent on Wednesday after the company posted an increase in consolidated profit to Rs 2,390.4 crore for the quarter ended on June 30, 2020. The stock jumped 16.84 per cent to close at Rs 262.95 on the BSE. During the day, it zoomed 17.97 per cent to Rs 265.50.
On the NSE, it jumped 16.77 per cent to settle at Rs 262.75. The company's market valuation rose by Rs 21,658.17 crore to Rs 1,50,261.17 crore on the BSE.
In volume terms, 63.13 lakh shares were traded on the BSE and over 13 crore on the NSE. The company had posted a consolidated profit, attributable to equity holders, of Rs 2,387.6 crore in the June 2019 quarter.
Total income of Wipro was almost flat at Rs 15,571.4 crore at the end of the first quarter of 2020-21 compared to Rs 15,566.6 crore in the corresponding quarter of the fiscal year 2019-20. The marginal increase in Wipro's performance surprised the market as the country's largest software services firm TCS on Thursday reported a 13.8 per cent decline in June quarter consolidated net profit at Rs 7,008 crore on revenues being impacted by the coronavirus crisis.
"Margins surprise positively, still appears circumspect of growth recovery unlike TCS. The company avoids providing a formal revenue outlook for the September quarter and unlike TCS, remains circumspect about seeing a recovery in the near term," Emkay Global Services said. According to a report by Motilal Oswal Institutional Equities, while full impact of the COVID-19 pandemic on pricing and working capital cycle is yet to play out, Wipro's outlook on managing margin stability and healthy cash conversions are impressive.
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