Business

Wipro To Buy Back Rs 9,500-Crore Shares, September Quarter Profit Up 3%

Wipro To Buy Back Rs 9,500-Crore Shares, September Quarter Profit Up 3%

Bengaluru-based IT major Wipro on Tuesday announced a share buyback plan worth Rs 9,500 crore. Wipro will buy back 23.75 crore shares at Rs 400 per equity share, the company said in a press release. Wipro's buyback price was at a premium of 6.45 per cent to today's closing price of Rs 375.75. The company also reported a 1.4 per cent sequential increase in gross revenue to Rs 15,110 crore in the quarter ended September 2020.

In dollar terms, Wipro said, its revenues from IT services increased 3.7 per cent to $1,992.4 million.

Net profit during the period came in at Rs 2,466 crore in the July-September period, up 3.2 per cent compared to the previous quarter. 

Wipro's IT services operating margin expanded 200 basis points to 10.2 per cent.

"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 in a statement.

"Our strategy is to focus on growth in prioritized sectors & markets led by vertical solution offerings," he added. 

The company has guided for revenue from IT services to be in range of $2,022 million to $2,062 million, translating into a sequential growth of 1.5-3.5 per cent for the December quarter.

Meanwhile, Wipro said it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.

Eximius provides end-to-end solutions and services for building smarter, smaller and faster connected products for use in loT (Internet of Things), Industry 4.0, Edge Computing, Cloud, 5G and Artificial lntelligence, the company said in a press release.