Information technology (IT) services major Wipro on Tuesday reported a 3.4% year-on-year decline in net profit at Rs 2,466 crore for the second quarter ended September 30.
The Bengaluru headquartered firm also announced a Rs 9,500 crore worth share buyback, which it plans to purchase 23.75 crore shares at Rs 400 per share.
The buyback, 4.16% of the total paid-up equity share capital, will be bought back at a price of Rs 400 each share.
Wipro shares on Tuesday closed at Rs 375.75 on BSE, down 0.48%.
The second quarter’s revenue stood at Rs 15,114.5 crore, as compared to the previous year’s Rs 15,125.6 crore. Sequentially, revenue declined 1.33%.
The BFSI (banking financial services and insurance ) sector saw revenue at Rs 4,599.5 in Q2 2021, an increase of 2.53% from Rs 4,482.8 crore the previous quarter. Wipro's health business unit saw a rise of 2.61% to Rs 2,029.4 crore from Rs 1,976.0 crore in the previous quarter.
Meanwhile, the energy, natural resources and utility sector saw a decline of 1.52% from Rs 1,899.0 crore to Rs 1,927.9 crore. The technology business unit saw a big hit reducing from Rs 1,967.0 crore to Rs.1847.8 crore in Q2 2021, a drop of 6.45%.
The company also resumed its forecast cycle, saying that it currently expects revenue from its IT services business to be in the range of Rs 14,820.3 crore - Rs 15,113.5 crore.
“We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation,” Thierry Delaporte, CEO and Managing Director, Wipro said.
Last week Mumbai based global IT giant TCS had announced a Rs. 16,000 crore worth share buyback for its investors. It’s board approved a proposal to buyback about 5.3 crore shares of the company, at a rate of Rs 3,000 per share.
The country’s largest software exporter reported a 7% decrease in quarterly profit in the second quarter, July-September, of the financial year 2020-21.