IT services major Wipro on Tuesday posted a 3.4 per cent decline in consolidated net profit to Rs 2,465.7 crore in the three months ended September and projected revenue growth in the December quarter even as it announced a plan to buyback shares worth up to Rs 9,500 crore.
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, registered an almost flat year-on-year revenue growth at Rs 15,114.5 crore in the latest September quarter.
On a quarter-on-quarter basis, the company’s net profit climbed over 3 per cent while revenue was up by little over 1 per cent.
Wipro CEO and Managing Director Thierry Delaporte said the demand environment has improved from the first quarter even though the pace of decision making remains a bit slower on the larger deals.
Under the buyback proposal, which is subject to shareholders’ approval, will involve purchase of up to 23.75 crore equity shares, representing 4.16 per cent of the company’s total paid up equity capital, at Rs 400 per share. The buyback size will be up to Rs 9,500 crore and the price of Rs 400 per scrip is more than 6 per cent higher than than the company’s closing price of Rs 375.5 apiece on BSE on Tuesday.
Wipro’s announcement comes just a week after bigger rival Tata Consultancy Services’ unveiled a Rs 16,000 crore-share buyback offer.