Wipro Board approves up to Rs 9,500 crore buyback plan at Rs 400 per share

On Tuesday, the Wipro Board approved up to Rs 9,500 crore buyback plan at Rs 400 per share.

The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 237.5 million equity shares of ₹2 each (representing 4.16% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. The buyback price is ₹400 ($5.4¹) per equity share payable in cash for an aggregate amount not exceeding ₹95 billion ($1.3 billion).

The IT giant announced it quarter ending September results on Tuesday. Wipro's Q2 consolidated net profit slipped 3.4% to Rs 2,465.7 crore and its revenue was nearly flat at Rs 15,114.5 crore over year-ago period.

Highlights of the Results

Results for the Quarter ended September 30, 2020:

⮚ Gross Revenue was ₹151.1 billion ($2.1 billion¹), an increase of 1.4% QoQ and a decrease of 0.1% YoY

⮚ IT Services Segment Revenue was at $1,992.4 million, an increase of 3.7% QoQ

⮚ Non-GAAP² constant currency IT Services Segment Revenue increased by 2.0% QoQ

⮚ IT Services Operating Margin³ for the quarter was at 19.2%, an expansion of 0.2% QoQ and 1.1%YoY

⮚ Net Income for the quarter was ₹24.7 billion ($335.3 million¹), a decrease of 3.4% YoY

⮚ Earnings Per Share for the quarter was at ₹4.33 ($0.06¹), an increase of 0.7% YoY

⮚ Operating Cash Flow was at ₹44.1 billion ($600.1 million¹), which is 179.0% of Net Income