Wipro scrip surges over 5% in early trade

PTI Updated - January 20, 2012 at 11:50 AM.

Shares of IT major Wipro surged over 5 per cent in the morning trade today after the company reported a 10.43 per cent increase in consolidated net profit for the third quarter ended December 31, 2011.

The shares of the country’s third largest software services exporter rallied 5.14 per cent to an early peak of Rs 424.90 on the BSE. On the NSE, too, the stock advanced by 5.13 per cent to Rs 424.90.

During the pre-noon session, the scrip was trading higher by 3.07 per cent at Rs 416.15 on the BSE and was trading up by 2.97 per cent at Rs 416.15 on the NSE.

“The company has guided for muted Q4 FY’12. We believe better than peers’ guidance indicates restructuring working well for Wipro,” brokerage firm Prabhudas Lilladher said in a report.

“However, IT services revenue growth as well as profit after tax missed our expectations by a whisker,” it added.

For the fourth quarter ending March 31, Wipro expects revenues from IT services business to be in the range of $1,520 million to $1,550 million, a sequential increase of one per cent to three per cent.

Wipro reported a 10.43 per cent increase in consolidated net profit to Rs 1,456.4 crore for the third quarter. Net income rose to Rs 9,997.2 crore in the December quarter against Rs 7,829.3 crore in Q3 FY’11, it said.

Published on January 20, 2012 06:08