Wipro posts IT services revenue for quarter grew by 3.7 pc

Bengaluru: The IT services major Wipro Ltd has posted a net profit of Rs 2465.7 crore, a 3.4 per cent decline, for the quarter ended September 30.

In a company’s statement issued here, it was stated that the governing body of the company, which had vetted accounts, had also approved a proposal to a buyback plan up to Rs 9500 crore at Rs 400 per share.

Under the buyback plan, over 23.75 crore equity shares would be taken back for a price of Rs 400 per share, after securing shareholders approval through postal ballot. Accounts for about 4.16 per cent of the paid up equity share capital of the company at the end of September 30.

On the performance of the company during the second quarter company’s CEO and Managing Director Therry 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,” he added.

Following are the highlights of the results, for the Quarter ended September 30, 2020:

The gross revenue was Rupees 151.1 billon, an increase of 1.4 per cent QoQ and decrease of 0.1 per cent YoY, IT services segment revenue was at UNS 1992.4 million, an increase of 3.7 per cent QoQ and Net Income for the quarter was recorded at Rs 24.7 billion, a decrease of 3.4 per cent YoY.

Jatin Dalal, Chief Financial Officer 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 per cent to 19.2 per cent in the IT Services segment.

”Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7 per cent of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders,” he added.

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