Wipro Shares Gain Most Among Big IT Firms After New CEO Joins

Wipro shares on Monday closed marginally down at Rs 358.55 in a firm Mumbai market, valuing the company at Rs 204,923.45.

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Frenchman Thierry Delaporte, appointed as the chief executive of Wipro with effect from July 6, 2020, amid the COVID-19 pandemic, and since then without stepping into firms Bangalore headquarters once, he is credited for a 70 per cent rally in Wipro’s shares, the most among the Indian information technology (IT) firms. Delaporte, the first CEO of an India-based IT firm who’s not of Indian ethnicity in the past six months, tried to turn around the struggling IT business during the pandemic through a virtual tour from his home in Paris by meeting workers, managers, and customers around the globe. Wipro’s shares grew, even as 98 per cent of its workforce and its CEO worked from home (WFH). Some of the quick decisions taken by the 53-year-old for Wipro’s turnaround includes slashing the top ranks of leadership from 25 people to four, accelerating acquisitions, retaining and expanding customers with new multi-year contracts in the US and Europe. After years of tumult and stagnating financials, the Capgemini veteran swiftly closed more deals for Wipro in the past five months than the firm did in the past five years. “There’s a particular momentum in the industry just now, and I want to drive that urgency to put Wipro back where it belongs. I know I’m good at one thing - getting things done,” said Delaporte told Bloomberg, speaking from Paris in his first interview since assuming the CEO post. According to ShareKhan by BNP Paribas, the management aims to transform the company into a more externally focused and decentralized organization to accelerate growth compared to its earlier internal and operational centric approach. “The CEO stated that the leaner organization structure would reduce P&L to 4 units versus 25 units earlier, which would enable it to take better decision on go-to-market strategy and optimize costs," it said. Investors took note of it, and Wipro shares that closed at Rs 159.6 on March 19, 2020, just ahead of the lockdown, zoomed to touch its 52-week high of Rs 381.70 on October 13, 2020, registering a growth of 140 per cent. The shares have gained about 70% since Delaporte took charge in July first week. Wipro shares on Monday closed marginally down at Rs 358.55 in a firm Mumbai market, valuing the company at Rs 204,923.45. Analysts believe that Wipro’s margins are likely to sustain given structural changes, pricing power, operational excellence, and lower discretionary expenses.