During Monday’s trading session, the share price of a leading technology services and consulting company moved up by 3 percent to Rs. 545.35 on BSE, after the company’s Board scheduled a meeting to consider the proposal for the issue of bonus shares.
With a market cap of Rs. 2.82 lakh crores, at 10:37 a.m., the shares of Wipro Limited were trading in the green at Rs. 539.8, up by 2.05 percent, compared to its previous closing price of Rs. 528.95.
What’s the news:
Wipro Limited informed the stock exchanges that a meeting of the company’s Board will be held on October 16-17, 2024, to consider the proposal for the issue of bonus shares.
This would be Wipro’s first consideration of bonus shares since 2019, when it distributed one bonus share for every three shares held by shareholders.
As a public company, Wipro has historically issued the highest number of bonus shares among both Nifty and non-Nifty constituents, with a total of 13 distributions. The company has issued bonus shares in the years 1971, 1981, 1985, 1987, 1989, 1992, 1995, 1997, 2004, 2005, 2010, 2017, and 2019.
Wipro has yet to announce the record date for the potential bonus issue, which will be revealed at the conclusion of its two-day board meeting.
Additionally, Wipro will also report its financial results for the September quarter on 17th October.
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Previous News:
On 27th August, Wipro Limited announced an expansion of its collaboration with Dell Technologies to bring the Dell AI Factory into Wipro’s Enterprise AI-Ready Platform.
This partnership aims to enhance cost control and risk mitigation while providing enterprises with access to top-tier technology, facilitating the adoption of AI across cloud, data centre, and edge environments.
Wipro’s Enterprise AI-Ready Platform will utilise the Dell AI Factory in conjunction with NVIDIA, including Dell Validated Designs for Generative AI, enabling GenAI processing capabilities without significant upfront investment.
The platform is supported by the NVIDIA AI Enterprise software, powered by NVIDIA H100 Tensor Core GPUs, and the NVIDIA Spectrum-X™ Ethernet networking platform.
Financials:
Financially, the company experienced a marginal decline in its revenue from operations, showing a year-on-year fall of 3.8 percent from Rs. 22,831 crores in Q1 FY24 to Rs. 21,964 crores in Q1 FY25.
In contrast, its net profit increased during the same period from Rs. 2,886 crores to Rs. 3,037 crores, indicating a growth of 5.3 percent YoY.
In Q1 FY25, Wipro’s total bookings stood at $3.3 billion, down by 9.1 percent QoQ in constant currency terms, while the large deal bookings were at $1.2 billion.
For the quarter ending September 30, 2024, the company expect the revenue from its IT Services business segment to be in the range of $2,600 million to $2,650 million.
Stock Performance
The stock has delivered positive returns of nearly 31.4 percent in one year, and around 17.3 percent returns in the last six months. So far in 2024, the shares of Wipro have given about 12.9 percent of positive returns.
About the company:
Wipro Limited is a global information technology (IT), consulting and business process services (BPS) company.
The company provides a range of IT and IT-enabled services including digital strategy advisory, customer-centric design, consulting, custom application design, development, re-engineering & maintenance, systems integration, and more.
Wipro also provides a range of third-party IT products such as computing, platforms and storage, networking solutions, enterprise information security, and software products, including databases & operating systems.
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Written by Shivani Singh
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