Wipro shares jumped almost 8% on Monday on the back of better than expected results, and as stockbroker Nirmal Bang put it, "All engines fire(d) after a long time."
The Bengaluru based company reported its third-quarter results ended 31 December 2014 after market hours on Friday, with its consolidated profit standing at ₹2,193 crore on consolidated revenue of ₹12,085 crore.
In dollar terms, Wipro's recorded a sequential growth of 1.3%, even as Infosys came in at 0.8% while Tata Consultancy Services posted flat results. In constant currency terms, Wipro's revenue grew 3.7%, recording a 12-quarter high.
From a constant currency QoQ revenue growth perspective, Wipro's consistent performance, will result in the current 30% P/E discount, which it shares with TCS, settling down at 20-25% in the near term, said Bang.
The company issued its guidance for 1.1-3.1% sequential dollar revenue growth in the March quarter. On the higher end of the guidance, Wipro could close the year with a 8% revenue growth, closer to the revenue growth Infosys has planned to achieve -- 7-9% -- for the current fiscal, reported NDTV Profit.
The software giant reported a 40 basis point increase in its operating margin, which at 21.8% is significantly lower than the first two competitors.
The company's scrip was trading at 591.40, up by 36.35 or 6.55% at 11:12 am.
