Wipro gets back into the game

In top form Wipro's operating margin hit a multi-quarter high in Q3FY25 despite wage hikes.

- Harsha Jethmalani

Wipro Ltd's investors are elated. The stock surged 6.5% on Monday following its better-than-anticipated result in a seasonally weak December quarter (Q3FY25).

The enthusiasm among investors is understood, considering the earnings pain Wipro has been through due to increased weakness in its discretionary portfolio and company-specific challenges. This had kept the Wipro stock on the backfoot compared to peers lately.

Sequential constant currency (CC) revenue for IT services in Q3 grew 0.1%, beating the consensus estimate of -0.5%. "Wipro Q3 performance was an inflection of sorts. Revenues topped the upper end of its guide (-2-0%), a first in over 12 quarters," said JM Financial Institutional Securities on 17 January.