Wipro set to acquire US based SAP consulting firm; stock closes nearly 2% down
The company has signed an agreement with Rizing Inc.
Wipro Ltd, one of the popular names in the Indian IT sector, has been trending on Dalal Street as the company announced acquisition news. However, the stock closed down by 1.91% from its previous close of Rs 529.35. The scrip opened at Rs 490 and after touching the day’s high, traded in red zone for the whole session.
According to its press release, it has signed a definitive agreement to acquire Rizing Intermediate Holdings Inc., a global SAP consulting firm, significantly expanding its breadth of capabilities in helping businesses transform into intelligent enterprises. Rizing is the latest in a series of acquisitions by Wipro, underscoring the company’s ambitious growth agenda. The deal size of the acquisition is $540 million (approx. Rs 4,050 crore). Recently, the earnings picture of IT companies hasn’t been that impressive. Global IT outlook is not as strong as it was several months ago. Hence, IT stocks are being dragged down and Wipro is no exception.
Talking about its recent quarterly results, in Q3FY22, revenue grew by 29.63% YoY to Rs 20313.6 crore from Rs 15670 crore in Q3FY21. On a sequential basis, the top-line was up by 3.29%. PBIDT (Ex OI) was reported at Rs 4180.7 crore, up by 1.54% as compared to the year-ago period and the corresponding margin was reported at 20.58%, contracting by 570 basis points YoY. PAT was reported at Rs 2964.7 crore, down by 0.77% from Rs 2987.7 crore in the same quarter for the previous fiscal year. The PAT margin stood at 14.59% in Q3FY22 contracting from 19.07% in Q3FY21.
Wipro Ltd is one of the leading global information technology, consulting, and business process services companies. Currently, the company has a market cap of about Rs 2.84 lakh crore. The stock has a 52-week high of Rs 739.8 and a 52-week low of Rs 477.80.
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