NEW DELHI: Software services exporter Wipro on Tuesday reported a 3.4 percent drop in its consolidated net profit for the second quarter (Q2) ended September 30. The Bengaluru-based company recorded a net profit of Rs 2,466 million in the period considered compared to a profit of Rs 2,553 million recorded in the same period last year.
In a regulatory filing, the company also said that it approved a proposal to buy back up to 23.75,00,000 shares of capital for a total amount not to exceed 9,500 crore rupees, which is equivalent to 4.16% of the total paid-up share capital, to a price of Rs 400 per share of capital.
Quarterly, Wipro reported a 3.17% increase in its net profit. It had posted a net profit of Rs 2,390 crore in the first quarter (Q1) ended on June 30.
Commenting on the results, Chief Executive Officer (CEO) and Managing Director Thierry Delaporte said: “We had an excellent quarter with revenue growth, margin expansion and strong cash generation. I am very excited about the opportunities ahead and encouraged by the acceleration in business momentum that 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 almost unchanged at Rs 15,114.5 crore. It had posted revenue of 15,125.6 crore in the prior quarter.
The company expects its revenue from the IT services business to be in the range of $ 2,022-2,062 million for the December quarter, which translates into sequential growth of 1.5-3.5 percent. IT Services segment revenue for the September quarter was $ 1,992.4 million, an increase of 3.7 percent quarter-on-quarter.
Jatin Dalal, Chief Financial Officer (CFO) of Wipro said: “It was another quarter of strong performance in margins and cash flows. We improved several operating parameters to deliver a 0.2% to 19.2% margin expansion in the IT services segment. The share buyback announcement is part of our philosophy of delivering consistent returns to shareholders. ”
Wipro shares ended 0.48 percent lower at Rs 376 on the BSE. Meanwhile, it finished 0.61 percent lower at Rs 375 on NSE.
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