Wipro’s share price surged over 1% as the company reported its results for the quarter ended June.

What Happened: The profit for the period reached ₹2,870 crore, marking a 12% increase from the ₹2,558.9 crore profit recorded during the same period last year. The IT services company announced a 6% rise in consolidated revenues, amounting to ₹22,831 crore, in comparison to the ₹21,528.6 crore revenue generated in the corresponding quarter of the previous year. However, both the revenue and profit figures fell short of consensus estimates.

Despite the timid numbers, Wipro stock was trading higher along with other tech stocks. This rally was primarily driven by a reduction in U.S. inflation rates, which has contributed to positive market sentiment.

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Analyst Reactions: Most analysts were not impressed by the company’s performance. Morgan Stanley maintained its “underperform” rating for the stock with a price target of ₹352. The analysts said that Wipro’s revenue growth has decelerated sharply as compared to peers.

Nomura also maintained its “neutral” rating for the stock with a price target of ₹375. The firm noted that growth continues to be weak due to low discretionary spending. It expects growth to remain low in the near term.

Jefferies also maintained its “underperform” rating for the stock with a price target of ₹335. The research firm said that the company’s results missed estimates mainly due to lower-than-expected revenues.

BofA Securities also maintained its “underperform” rating with a target price of ₹360. The firm expects the company’s FY24 revenue to follow a flat trajectory.

Price Action: Wipro’s share price was up 0.80% to trade at ₹397.45 at market open on Friday.

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