Wipro Ltd has become the third Indian information technology firm to achieve the milestone of three trillion rupees (US$41 billion) in market capitalization. Tata Consultancy Services and Infosys are the two other IT companies to reach this milestone.
Wipro’s stock hit a record high of 550 rupees in early trade on Thursday and the market capitalization stood at 3.01 trillion rupees.
The Indian IT major recently overtook Cognizant in market capitalization and is now the fourth most valuable IT services firm globally after Accenture, TCS and Infosys. Wipro’s American Depository Receipts have risen 2.4% to $7.4 apiece on the NYSE.
Wipro scrip has gained momentum ever since Thierry Delaporte, a CapGemini veteran, took over as CEO and MD of the Bangalore-headquartered company. This year it has risen 40%, reports LiveMint.
Under the Frenchman the company won many strong deals, including its acquisition of London-based IT consultancy firm Capco for $1.45 billion.
Ever since Delaporte took over, the company has increased its focus on Europe and made a series of acquisitions. They include German wholesaler Metro AG’s IT unit ($700 million), engineering services firm Eximius Design ($80 million) and Encore Theme Technologies Private Ltd, a software-as-a-service firm ($13 million). Europe is Wipro’s second-largest market and contributes 25.2% to its total revenue.
Delaporte has trimmed Wipro’s top-heavy senior management and brought down the number of top ranks to four from 25. He has also restructured the organization with a focus on winning large deals.
In the recent January-March quarter, Wipro recorded 27.78% growth in net profit. The software major reported a consolidated net profit of 29.72 billion rupees ($397 million) for the quarter against 23.26 billion in the same period last year. This is also marginally higher than the net profit in the preceding December quarter (29.68 billion rupees).
Indian software firms have bagged a spate of big-ticket deals amid the Covid-19 pandemic. Tata Consultancy Services did a large deal with Prudential Financial and Infosys won its largest deal with German auto major Daimler (estimated at $3.2 billion). They have been successful in tapping the rising appetite of their clients for digital technology and migration to cloud.
After clinching these deals, Indian IT majors are also increasing their headcount through campus as well as lateral hiring to cope with the increased workload.