Shares of Wipro, the country's third- largest software exporter, surged over 9 per cent after the IT major reported an 11 per cent rise in June quarter profit and said it was upbeat about demand for its outsourcing services. Cheering the smart quarterly numbers which were declared post market hours on Friday, shares of Wipro opened the day on a positive note and further jumped 9 per cent to Rs 417.50 on the BSE.
The scrip was the top gainer at the BSE benchmark Sensex during the morning session. At the NSE, the stock zoomed up by 9.43 per cent to Rs 418. Tracking gains in the stock, the market cap of Wipro rose by Rs 5,051 crore to Rs 99,377 crore. "Wipro's Q1 results was broadly in-line with estimates," said Vivek Mahajan, Head of Research, Aditya Birla Money. Wipro, India's third-largest software exporter, on Friday reported an 11 per cent rise in June quarter profit on back of an increase in large contracts and said it was upbeat about demand for its outsourcing services.
Controlled by Chairman Azim Premji, Wipro said that April-June quarter net profit at Rs 1,623.3 crore was 10.7 per cent higher than Rs 1,466 crore in the same period a year ago. The year-earlier profit excludes earnings from its non-IT businesses, which were demerged into a privately held company. Wipro, which does not give annual forecasts, said it expects revenue from the IT services business to increase 2 to 3.9 per cent to USD 1.62-1.65 billion in the current July- September quarter. Wipro's consolidated sales rose 5 per cent to Rs 9,733.2 crore in the April-June quarter.