Wipro shares surge over 5% after securing $500m contract from US communication service provider

Wipro Ltd., headquartered in Bengaluru, witnessed a remarkable surge of over 5% in its shares on Friday, making it the top gainer on the Nifty 50 index. The surge came after the company announced its successful bid for a significant contract in the United States.

In an exchange filing on Thursday evening, Wipro disclosed that a leading US communication services provider has entrusted the company with a contract for managed services involving specific products and industry-specific solutions.


The contract, valued at $500 million, is expected to span a period of five years. However, Wipro has not disclosed the identity of the leading communication service provider that awarded them the contract.

As of 11:44 am, Wipro shares were trading 5.16% higher at ₹484.80.

Despite the recent surge, Wipro reported a net profit of Rs 2,835 crore for the fourth quarter ending March 2024 (Q4FY24), indicating a nearly 8% decrease compared to the previous year. However, the company showed a 5.2% increase quarter-on-quarter.

Revenue for the March quarter experienced a 4.2% decline from the same period last year, amounting to Rs 22,208 crore. Sequentially, revenue growth remained stagnant due to ongoing pressures on discretionary spending.

Wipro’s revenue forecast for its IT services segment in Q1FY25 ranges between $2.62 billion to $2.68 billion, indicating a sequential guidance of -1.5% to +0.5% in constant currency (CC) terms.