Wipro announces 1:1 bonus issue; shares rise 4% due to strong second quarter results

Shares of the IT giant and the fourth largest IT company in the country, Wiprorose nearly 4% today after the company’s board of directors approved a 1:1 ratio bonus question. This also follows positive results Second quarter results declared by the company yesterday.

The company’s business book grew by 28.8% QoQ and 16.8% YoY as its revenue grew to Rs 22,300 crore during the quarter and profits jumped to Rs 3,210 crore during the second quarter of fiscal year 2025.

Yesterday, the company recorded a solid 21.2% year-on-year increase in its consolidated net profits, which stood at Rs 2,646.3 crore in the year-ago period. The company’s revenue from IT Services segment was US$2,660.1 million, an increase of 1.3% QoQ and a decrease of 2.0% YoY.

For the quarter ending December 31, 2024, the company expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million.

Wipro CEO and MD Srini Pallia said the second quarter was driven by strong execution, which enabled the Bengaluru-based company to meet its expectations for revenue growthreserves and margins.

“We continued to grow our key accounts; large business bookings once again exceeded $1 billion and Capco maintained its momentum for another consecutive quarter. We grew in three of the four markets, as well as BFSIconsumer, technology and communications sectors,” he said.

Total reserves for the quarter were US$3,561 million, while large business reserves were US$1,489 million, an increase
of 28.8% QoQ and 16.8% YoY.

The company’s operating income for the reporting quarter was achieved and stood at Rs 22,301.6 crore, a slight decline from Rs 22,515.9 crore in the year-ago period. Pallia further noted that the company’s revenue for the October-December quarter is expected to be affected by seasonal furloughs and fewer working days.

As for the sectoral contribution to revenue for the quarter, a maximum of 34.8% came from banks, financial services and insurance. At the other end of the spectrum, the manufacturing industry contributed the least, with 6.2%.

While the record date for bonus issuance will be announced later, crediting of these bonus shares, priced at Rs 2 each, will be completed by December 15, 2024.

Broker Nomura gives a “buy” rating to Wipro, with a price target of Rs 680/share. As of 2:50 pm today, the stock was trading at Rs 552.50.