Wipro hits 52-week high on upbeat Q2 revenue guidance

Wipro said the next financial year would be much better for the company's India business.

Wipro is trading higher by 3.3% at Rs 422, extending its previous day’s 7% rally, after the country’s third largest information technology (IT) services provider said the next financial year would be much better for the company’s India business.

Wipro, which guided for a dollar revenue growth of 2-4% (bullish quarter after several quarters) for the second quarter, is expecting the geography to be better in the next quarter.

On Friday, while announcing April-June (Q1) quarter results, Wipro said it expects 1.99% to 3.88% growth in revenue from IT services business at between $1.62 billion to $1.65 billion in July-September (Q2) quarter over Q1.

The company’s guidance of 2-4% QoQ growth in USD revenues in Q2 was above our expectation of 1-3%. Our earlier estimate of growth was 2% QoQ, which now stands revised upwards to 3%. Better than expected guidance comes on the back of successful closures of some large deals during the quarter and improved macro sentiment in the US, says analyst at Motilal Oswal Securities in a report.

The stock opened at Rs 411 and hit 52-week high of Rs 423 on BSE. A combined 2.83 million shares changed hands on the counter till late noon deals on BSE and NSE.