Wipro to consider bonus issue of shares, stock gains 

Shares of IT major Wipro Ltd rose 3% in early deals on Monday after the firm said it would consider a bonus issue of shares on October 17. Wipro stock climbed 3% to Rs 545.35 on BSE in early deals today. Market cap of Wipro stood at Rs 2.83 lakh crore crore. Total 0.60 lakh shares of the firm changed hands amounting to a turnover of Rs 5.11 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of Wipro stands at 47.6, signaling the stock is neither oversold nor overbought on charts. The IT stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 150 day and 200 day moving averages.  

The IT firm announced bonus shares last time in 2019, when it had issued one bonus share for every three shares held by shareholders. The Bengaluru-based IT services provider will also announce its September quarter results on October 17. 

Axis Securities expects Wipro to report revenue de-growth of 2.3% QoQ in rupee terms and operating margin expand of 51bps. 

Key factors to watch out for are a) Deal TCV/deal pipeline, b) Pricing scenario, and c) Outlook on growth, operating margins, and P&P business, the brokerage said. 

Anand Rathi in its Q2 earnings preview said, "We expect IT companies to report steady Q2, led by the gradual recovery in US BFSI. Revenue growth divergence persists. Mid-tier companies should continue to do well, and we expect their outperformance to be sustained over medium term."

Wipro logged a 5.21 per cent year-on-year (YoY) rise in consolidated net profit at Rs 3,036.60 crore in Q1 compared with Rs 2,886 crore in the same quarter last year. Revenue fell 3.79 per cent to Rs 21,963.80 crore in the June 2024 quarter against Rs 22,831 crore in the corresponding quarter last year. Wipro's IT service revenue came in at Rs 21,896 crore.

The IT firm said it expected September quarter revenue from IT Services business segment to be in the range of $2,600 million to $2,652 million. This amounts to a sequential guidance of minus 1 per cent to 1 per cent in constant currency terms.