Wipro Q2 profit slips 3.4% to Rs 2,466 crore

NEW DELHI: Software services exporter Wipro on Tuesday reported a 3.4 per cent fall in its consolidated net profit for the second quarter (Q2) ended September 30. The Bengaluru-based company posted Rs 2,466 crore net profit in the period under consideration as against a profit of Rs 2,553 crore posted in the same period last year.
In a regulatory filing, the company also said it has approved a proposal to buyback up to 23,75,00,000 equity shares for an aggregate amount not exceeding Rs 9,500 crore, being 4.16% of the total paid-up equity share capital, at a price of Rs 400 per equity share.
On quarterly basis, Wipro reported a 3.17 per cent rise in its net profit. It had posted a net profit of Rs 2,390 crore in the first quarter (Q1) ended June 30.
Commenting on the results, chief executive officer (CEO) and managing director Thierry Delaporte said: “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. Our strategy is to focus on growth in prioritized sectors and markets led by vertical solution offerings.”
Wipro’s revenue for the September quarter was nearly flat at Rs 15,114.5 crore. It had posted a revenue of 15,125.6 crore in the previous quarter.
The company expects its revenue from IT Services business to be in the range of $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 $1,992.4 million — an increase of 3.7 per cent quarter-on-quarter.
Jatin Dalal, chief financial officer (CFO) of Wipro said: “It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2% to 19.2% in the IT Services segment. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”
Shares of Wipro finished 0.48 per cent lower at Rs 376 on the BSE. While, it finished 0.61 per cent lower at Rs 375 on NSE.

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