Wipro shares plunge after CEO Thierry Delaporte steps down

Indian IT giant Wipro's shares plunged almost 1% on Monday's early trade. The shares were trading at Rs 480 a piece as against Rs 489 on Friday's close. This comes as Wipro's CEO Thierry Delaporte stepped down from the post over the weekend.

Srini Pallia suceeds Thierry Delaporte

Thierry Delaporte is now succeeded by Srini Pallia who has been with the company for over 32 years now. Pallia was the head of the Americas-1 unit of the consulting and services multi-national.

Also Read: Wipro CEO Thierry Delaporte resigns; Srinivas Pallia named new Chief Executive Officer

As per The Economic Times, before being appointed as the Americas-1 CEO, he also served as the president of the company’s consumer business unit and the global head of business application services.

“Srini is an ideal leader to lead Wipro at this pivotal moment for our company and industry. His client-centric approach, growth mindset, strong execution focus, and his commitment to Wipro's values, make him the perfect fit as we enter the next chapter of growth and profitability,” Wipro chairman Rishad Premji was quoted as saying in a notification to the exchanges.

Wipro's Performance

The change in leadership comes at a time when Wipro has been facing criticism over its performance. The IT firm's revenue has hit a low relative to peers without any room to tweak operating margin.

On the operating margin, though India's top IT firms have recorded a depletion, Wipro's has been the highest contraction of 570 basis points between December 2020 and December 2023 quarters with the lowest margin of 16% among top peers in the latest December quarter.

Over the past two years, Wipro's stock has been under pressure due to the underperformance with respect to revenue, profit and margins.

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