‘By P. Sarojini’
Bengaluru (CWBN)_ The Bengaluru-based IT company announced a share buyback plan worth INR 9,500 crore this Tuesday. With Wipro’s profit raising to 3% in the September quarter, this share buyback plan has been announced. The company said in a press release that they will buy back 23.75 crore shares at INR 400 per equity share. Wipro’s buyback price was at a premium of 6.45 per cent to today’s closing price of ₹ 375.75. The company reported that they had a 1.4 per cent sequential increase in gross revenue to INR 15,110 crore in the quarter September this year. Wipro also said that its revenues from IT services increased 3.7 per cent to $1,992.4 million in terms of dollar.
The net profit of INR 2,466 crore came in the September quarter with 3.2 per cent compared to the previous quarter. During the period, Wipro’s IT services operating margin expanded 200 basis points to 10.2 per cent.
Wipro CEO and managing director Thierry Delaporte said in his statement, “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”. He added that they are working on some strategies to focus on the growth in prioritized sectors and markets led by vertical solution offerings.
The company’s revenue from IT services was set to be in the range of $2,022 million to $2,062 million, but it will target to reach a sequential growth of 1.5 to 3.5 per cent for the December quarter.
Additionally, Wipro said that they have signed a definitive agreement with ‘Eximius Design’ to acquire their leading engineering services for nearly INR 586.3 crore. Eximius Design is an engineering services company focused on ASIC design and FPGA design and a strong expertise in semiconductor, software and system design.
It was said in the press release that Eximius services includes 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 intelligence, etc. These services will be acquired by the Wipro at a cost of INR 586.3 crore in order to upgrade their services in the future.
