Wipro Slips Nearly 7% Post Q2 Earnings, Share Buyback Plans

Wipro Slips Nearly 7% Post Q2 Earnings, Share Buyback Plans

The company reported a 3.2 per cent jump in net profit at Rs 2,466 crore in the July-September quarter.

Wipro shares slipped nearly 7 per cent in early trading in a weak market a day after the Bengaluru-based IT major announced a share buyback plan worth Rs 9,500 crore and 3 per cent jump in net profit in the quarter ended September 30, 2020. The shares of Wipro shed as much as 6.7 per cent to touch an intra-day low of Rs 340.45 at opening bell. At 9:50 am, the shares were trading at Rs 351.60, down 6.43 per cent on the BSE.

Post market hours on Wednesday, Wipro had announced that it would buy back 23.75 crore shares at Rs 400 per equity share, which was a premium of 6.45 per cent to Tuesday’s closing price of Rs 375.75.

The buyback premium probably failed to enthuse investors this morning, although one needs to keep in mind that Wipro share prices have risen remarkable in the recent past, according to analysts.

The company reported a net profit of Rs 2,466 crore in the July-September period, up 3.2 per cent compared to the previous quarter. It also reported a 1.4 per cent sequential increase in gross revenue to Rs 15,110 crore in the quarter ended September 2020. In dollar terms, Wipro said that its revenues from IT services increased 3.7 per cent to $1,992.4 million in the quarter.

Wipro also said 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 end-to-end solutions and services for building smarter, smaller and faster connected products for use in loT (Internet of Things), Industry 4.0, Edge Computing, Cloud, 5G and Artificial lntelligence, the company said in a press release.

The BSE Sensex was trading at 40,342.41, lower by 265 points or 0.65 per cent and the NSE Nify was at 11843.65, down 88.60 points or 0.72 per cent at the time.

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