6 Reasons Why Wipro Stock Has Surged 8 Per cent

Results Beat Expectations

Wipro posted a consolidated net profit of Rs 2,193 crore on sales of Rs 12,085 crore. This was way ahead of what analysts had expected the company to earn. In fact, the sales in particular impressed the markets as analysts had largely expected the same to be under Rs 12,000 crores.

Dollar Revenues Impress

In dollar terms, Wipro reported a much better revenue growth than peers. The growth of 1.3 per cent sequentially, beat players such as Infosys (0.8 per cent) and TCS whose dollar revenue growth remained flat.

Another Factor in Share Price Rise

In constant currency, Wipro's Q3 dollar revenue growth at 3.7 per cent was at a 12-quarter high and much better than peers.

Comfort on the Margin Front

Margins at the company, especially operating margins have shown a remarkable improvement. Operating margins have grown by 30 basis points, which is a positive, though it is still lower than Infosys and TCS.

Attrition Rate a Positive

Wipro reported a decline in its attrition rate at 16.5 per cent. This has become an important indicator for software companies and a drop is positive for the company.

Positive Outlook

The management commentary remains buoyant and this is a major reason why the stock has surged a huge 8 per cent.