The Bengaluru-based information technology major – Wipro – on Tuesday announced a share buyback plan worth Rs 9,500 crore. Wipro will buy back 23.75 crore shares at Rs 400 per equity share, the company said in a press release. Wipro’s buyback price was at a premium of 6.45 per cent to its today’s closing price of Rs 375.75.
Meanwhile, in the quarter ended September 2020, Wipro’s gross revenue rose 1.4 per cent sequentially to Rs 15,110 crore and revenue from IT services increased 3.7 per cent to $1,992.4 million. Net profit during the period advanced 3.2 per cent to Rs 2,466 crore.
Wipro’s IT services operating margin expanded 200 basis points to 10.2 per cent.
“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 & markets led by vertical solution offerings,” Thierry Delaporte, CEO and Managing Director said in a statement.
The company has guided for revenue from IT services to be in range of $2,022 million to $2,062 million translating into a sequential growth of 1.5-3.5 per cent for December quarter.
Meanwhile, Wipro announced that it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.
Eximius provides endto-end solutions and services for building smarter, smaller and faster connected products for various use cases of loT, lndustry 4.0, Edge Computing, Cloud, 5G and Artificial lntelligence, the company said in a press release.