Shares of Bengaluru-based IT major Wipro rose nearly 3% to Rs 378 in Monday’s trade after the company announced that it will consider a share buyback proposal on April 27 along with the release of its March quarter report card.
In a regulatory filing, Wipro said its board of directors will consider a proposal to buyback equity shares of the company, besides other issues, at a meeting scheduled to be held on April 26-27.
“The outcome of the Board meeting will be communicated to the stock exchanges soon after the conclusion of the Board meeting on April 27, 2023,” the company said in an exchange filing.
The share buyback announcement will be made along with the quarterly results of the company, also scheduled to be released on April 27.
Wipro’s last share buyback was in FY21 when Azim Premji-affiliated entities had tendered 22.89 crore units worth about Rs 9,156 crore in between December 29, 2020, and January 11, 2021. Shares were bought back at a price of Rs 400 per equity share.
At 11.34 am, the stock was trading 2% higher at Rs 375.3 over its last day’s closing price of Rs 368 apiece. In the last one year, the stock has fallen 29%.
In its March quarter results, Wipro is expected to deliver revenue growth of 0.5% QoQ in constant currency terms. “We expect Ebit margin to expand by 40bps QoQ driven by higher utilization and currency benefit. We expect deal bookings to fall sequentially from a higher base last quarter, but be in the US$ 600-700m range supported by larger cost takeout deals. Revenue growth guidance for 1QFY24 would be the key thing to watch out for,” Jefferies said.In the December quarter of 2023, Wipro reported a 2.8% year-on-year (YoY) rise in consolidated net profit to Rs 3,053 crore. Its consolidated revenue for the quarter increased 14.3% YoY to Rs 23,229 crore.
In the March quarter, promoters reduced holdings from 72.94% to 72.92% while FIIs had raised their bet on the underperforming stock from 6.30% to 6.38%.
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