Wipro Share Buyback Proposal Discussion:
IT services giant, Wipro Ltd, has announced that its board of directors will convene on April 27, 2023, to consider a proposal to buyback equity shares. The Bengaluru-based company stated in a filing with the stock exchanges that it will discuss the proposal and other matters incidental to it during its meeting scheduled to take place on April 26-27, 2023.
The IT major will also unveil its financial results for the quarter ended March 31, 2023, on the same day. The outcome of the board meeting will be communicated soon after its conclusion on April 27.
A share repurchase, commonly known as a stock buyback, is a process in which a company re-acquires its own shares. It is an alternative and flexible way of returning money to shareholders, which can increase share prices when used in conjunction with increased corporate leverage.
In the previous December quarter, Wipro saw a 2.8% rise in its consolidated net profit, recording a net profit of Rs 3,053 crore compared to Rs 2,969 crore in the same period the previous year. Its revenue also rose by 14.3% to Rs 23,229 crore in Q3FY23.
TCS and Infosys, Wipro’s rivals, have recently reported below-expected Q4 results, which has set a subdued tone for the IT industry.
TCS reported a consolidated net profit of Rs 11,392 crore, which was a 14.8% YoY increase but lower than expected in a seasonally weak quarter. Infosys, on the other hand, missed its revenue guidance for FY23 due to unplanned project ramp-downs and decision-making delays by some clients. Experts anticipate one or two choppy quarters ahead for the industry but remain hopeful for subsequent recovery.
About Wipro:
Wipro Ltd is a multinational corporation based in India that offers services in information technology, business process, and consulting.
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