Wipro Q2 Results: Announced! Rs 9,500-cr buyback plan announced - Check net profit and other financial details
Information Technology services major Wipro on Tuesday posted 3.4 per cent decline in consolidated net profit to Rs 2,465.7 crore for the quarter ended September 30.
Information Technology services major Wipro on Tuesday posted 3.4 per cent decline in consolidated net profit to Rs 2,465.7 crore for the quarter ended September 30, and said its Board has approved up to Rs 9,500 crore buyback plan. The Bengaluru-based company, which had registered a net profit (attributable to equity holders of the company) at Rs 2,552.7 crore in the year-ago period, has priced the buyback programme at Rs 400 per share.
Wipro's revenue for the September quarter was nearly flat at Rs 15,114.5 crore.
Details from regulatory filing
In a regulatory filing, Wipro said its Board has approved a buyback proposal, subject to shareholders approval through postal ballot, for purchase of up to 23.75 crore equity shares at Rs 400 per share that aggregates up to Rs 9,500 crore.
This is 4.16 per cent of the paid-up equity share capital of the company as on September 30, 2020, it added.
At Rs 400 apiece, the buyback is 6.4 per cent higher than Tuesday's closing price of Rs 375.5 on BSE.
Wipro expects its revenue from IT Services business to be in the range of USD 2,022-2,062 million for the December quarter, translating to a sequential growth of 1.5-3.5 per cent. Its IT services segment revenue in the September quarter was at USD 1,992.4 million - an increase of 3.7 per cent quarter-on-quarter.
"We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter," Wipro CEO and Managing Director Thierry Delaporte said. "Company's strategy is to focus on growth in prioritised sectors and markets led by vertical solution offerings," he added.
Commenting on the Wipro Results, Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd, said, "Wipro reported a 3.7% qoq growth in IT services revenues to USD 1.99bn which was slightly ahead of street estimates. In rupee terms consolidated revenue increased by 1.4% qoq to ₹15,115 crore while gross profits increased by 0.7% qoq to ₹4,576 crore. Gross margins contracted by 20bps qoq to 30.3% which could be attributed to rupee appreciation during the quarter. Consolidated operating profit for the quarter was up by 4.4% qoq while consolidated operating margins were up by 55bps qoq to 18.6%. Operating margins for the IT services business improved by 20bps qoq to 19.2%. Net profit for the quarter was up by 3.2% qoq to ₹2,466 crore. Management revenue growth guidance of 1.5%-3.5% for IT services in Q3FY2021 is ahead of street estimates and reaffirms continued improvement in the demand environment. The company also announced a buyback of up-to ₹ 9,500 crore at a price of ₹400 per share which is at a premium to current market price.”
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.