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Wipro board to consider proposal for equity share buyback on April 27

Wipro

Wipro is also set to announce its financial results for the quarter that ended March 31, on the same day as the conclusion of the meeting

Business Today Desk

Updated Apr 23, 2023, 8:29 PM IST

IT services giant Wipro Ltd announced on April 23 that its board will consider a proposal to buyback equity shares in the upcoming week. In a filing with the stock exchanges, the Bengaluru-headquartered firm stated that “The Board of Directors of the Company will be considering a proposal to buyback equity shares of the Company and the matters necessary and incidental thereto…at its meeting scheduled to be held over April 26 -27, 2023.”

Wipro is set to announce its financial results for the quarter that ended March 31, on the same day as the conclusion of the meeting. Share repurchase, also known as a share buyback or a stock buyback, is the re-acquisition by a company of its own shares, and it provides an alternate and more flexible way of returning money to shareholders. When used in conjunction with increased corporate leverage, buybacks can raise share prices.

In the previous December quarter, Wipro reported a 2.8 per cent jump in its consolidated net profit. The company’s net profit came in at Rs 3,053 crore as compared to a profit of Rs 2,969 crore in the same period a year ago. Its revenue rose 14.3 per cent to Rs 23,229 crore in Q3FY23.

TCS and Infosys, Wipro’s rivals, reported Q4 results below estimates, setting a subdued tone for Q4 performance by the IT pack. TCS reported a 14.8 per cent YoY increase in consolidated net profit at Rs 11,392 crore for the quarter that ended March 31, 2023, which was below expectations in a seasonally-weak quarter. Infosys’ latest report card was a disappointment on several fronts. The company missed revenue guidance for FY23 due to unplanned project ramp-downs and decision-making delays by some clients.

Published on: Apr 23, 2023, 8:29 PM IST

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