Indian IT giant Wipro Limited has secured a major and strategic deal from Saudi Arabia. The company has been awarded a contract to upgrade the smart meter data management platform for National Grid SA, a leading electricity company in Saudi Arabia. This is a multi-year strategic agreement, which the company informed the stock exchange about on July 24th.
This deal aims to modernize Saudi Arabia's electricity distribution system, where Wipro's role will be to design, develop, and implement the technical infrastructure, smart applications, and data management systems.
What the Company Said About the Contract
Wipro has stated that it will implement a new Smart Meter Data Management (MDM) system for the entire transmission network of National Grid SA. Under this new system, the company will be responsible for building the infrastructure, application design, technical development, and its support.
The implementation of this system will enhance the stability of the electricity grid and enable early identification of faults in the network. This will directly impact providing a better service experience to customers.
Grid Functionality Will Improve
The new system will help in better understanding electricity usage patterns, which will enable National Grid SA to make its power dispatch operations more accurate. In addition, electricity wastage will be reduced, and unnecessary power outages can also be avoided.
Wipro's technology will provide National Grid with real-time analytics, which will accelerate fault detection and repair, and provide more reliable service to electricity consumers.
Reaction of Wipro's CEO
Amar Nakvi, Managing Director of Wipro MENA (Middle East and North Africa), said that this deal recognizes Wipro's digital engineering and smart grid solution capabilities. He stated that Saudi Arabia wants to completely digitize and make its energy sector smart under Vision 2030, and Wipro's role will be significant in this direction.
Deal Sparks Discussion in the Market
The announcement of Wipro's major deal has also stirred activity in the stock market. Analysts believe that the impact of this deal may be clearly visible in Friday's (July 25th) share trading session. On Thursday, the company's shares closed with a marginal gain of 0.2 percent at Rs 262.
How Wipro Performed in the Recent Quarter
Wipro released its June quarter results on July 17th. The company's revenue in constant currency was 2 percent lower than the previous quarter, which was in line with management's expectations. However, the margin increased to 17.5 percent, which shows the company's efficiency in cost control.
Analysts described these results as stable, as the margin improved despite the revenue decline.
Brokerage House's Perspective
After this quarterly report, brokerage firm Morgan Stanley said on July 18th that Wipro's performance shows stability, and the company's stock may see further gains in the future.
Morgan Stanley has maintained its 'Equal-weight' rating on Wipro, increasing the target price from Rs 265 to Rs 285. This means that the firm expects good growth in the share in the future.
Prospects for Digital Growth in Saudi Arabia
Saudi Arabia is rapidly investing in the energy and digital infrastructure sectors. Especially under Vision 2030, the country's economy is being shifted away from oil dependence towards modern sectors such as technology and smart grids.
Wipro's deal is considered a major participation of India in this direction. The company will have the opportunity to work on this project for a long time, which will strengthen its international business.
Wipro's Global Presence Will Be Strengthened
Wipro is already known for its technological solutions in several countries in America, Europe, and the Middle East. This new deal will further strengthen its Middle East portfolio and can take the company to new heights.
Wipro's role in the field of smart metering, green energy, and power management may increase further in the future.
Shareholders' Eyes Now on Friday's Trade
Now all eyes will be on Friday's stock market, where the impact of this deal may be visible on Wipro's shares. The special thing is that the company was already in a stable growth pattern, and this big deal has infused new energy into it.
On the last trading day of the week, Wipro investors will be watching how quickly the share picks up pace and whether it moves towards the brokerage target.
