Shares of Wipro today surged over 9 per cent after the IT major reported an 11 per cent increase in June quarter profit on the back of an increase in large contracts.
The company has said that it is upbeat about demand for its outsourcing services.
Cheering the smart quarterly numbers which were declared post market hours on Friday, the scrip 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 on the BSE benchmark Sensex during the morning session. On 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 Rs 5,051 crore to Rs 99,377 crore.
“Wipro’s Q1 results were broadly in line with estimates,” said Vivek Mahajan, Head of Research, Aditya Birla Money.
The 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 previous year’s 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 IT services business to increase 2-3.9 per cent to $1.62-1.65 billion in the July-September quarter.
Wipro’s consolidated sales rose 5 per cent to Rs 9,733.2 crore during the April-June quarter.