Wipro shares see 2.4% surge after upbeat Q4 results

Wipro shares saw a surge of 2.4 per cent on Monday after the Big Tech company posted fourth-quarter (Q4) results that exceed expectation, and with analysts revealing optimism that new CEO Srinivas Pallia would lead the company on the road to improvement.

Details of the company’s Q4 revenues were made public even as Pallia announced that the company’s growth would be his precedent objective. Pallia’s appointment as Wipro CEO has happened at a time when India’s IT services industry, said be around $254 billion in size, by and large witnesses a downward spending trend among buyers amidst geopolitical unrests, global financial stress and burgeoning interest rates everywhere.

Rated among the top four software service exporters in India, Wipro’s shares shot up at Rs 460.60 a little after 10am on Monday, by about 1.8 per cent. This lead to gains of 0.3 per cent on the Nifty IT index. The company has seen a four per cent downslide in the first four months of this year even as rivals Tata Consultancy Services (TCS) profited by 1.4 per cent. The Q4 results of TCS, released a few days ago, were below the expected mark.

Industry watchers Nirmal Bang Institutional Equities noted that Pallia likely has a three-year runway to deliver industry matching growth, if not the sort of growth that would turn Wipro into industry leaders, according to a Reuters report. Reportedly, 11 analysts have downgraded Wipro’s stock after London Stock Exchange Group (LSEG) released data, with another nine cutting their target price.