Wipro Announce Results, Board Approves Buy Back of Rs 9,500 Crore

Wipro announced financial results under International Financial Reporting Standards (IFRS) for the quarter  ended 30 September 2020. The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 237.5 million equity shares of Rs 2 each (representing 4.16% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. The buyback price is Rs 400 ($5.41) per equity share payable in cash for an aggregate amount not exceeding Rs 9,500 Crore ($1.3 billion1).

Thierry Delaporte, CEO and Managing Director said: “We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation.I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors & markets led by vertical solution offerings.”

Highlights of the Wipro Results

• Gross Revenue was Rs 151.1 billion ($2.1 billion1), an increase of 1.4% QoQ and a decrease of 0.1% YoY
• IT Services Segment Revenue was at $1,992.4 million, an increase of 3.7% QoQ
• Non-GAAP2 constant currency IT Services Segment Revenue increased by 2.0% QoQ
• IT Services Operating Margin3for the quarter was at 19.2%, an expansion of 0.2% QoQ and 1.1%YoY
• Net Income for the quarter was Rs 7 billion ($335.3million1), a decrease of 3.4%YoY
• Earnings Per Share for the quarter was at Rs 4.33 ($0.061), an increase of 0.7% YoY
• Operating Cash Flow was at Rs 44.1 billion ($600.1 million1), which is179.0% of Net Income

Jatin Dalal, chief financial officer said: “It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2% to 19.2% in the IT Services segment. Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7% of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”