Wipro share price jumps after company announces buyback of shares worth ₹12,000 crore.
What Happened: The IT major on Thursday announced its Q4 earnings. The company’s revenue from operations for the quarter ended March stood at ₹23,190 crore, up 11% from the year-ago period. IT services revenue grew by 3.7% YoY and 0.7% sequentially to ₹23,083 crore ($2,823 million).
Consolidated net profits for the period stood at ₹3,074 crore, down 0.4% year-over-year. Earnings per share for the quarter stood at ₹5.61. The company said that for the June quarter, it expects the IT Services business including India State Run Enterprise (ISRE) segment to be in the range of $2,753 million to $2,811 million.
Kotak Institutional Equities maintained its ‘reduce’ rating for the stock after the results came out. The brokerage firm said that the company had a weak end to the year and expects the IT services giant to underperform its peers on revenue growth over FY24-25. The firm assigned a price target of ₹360.
The company also announced a share buyback worth a total of ₹12,000 crore. The company’s board has approved the proposal to buyback to buyback up to 26,96,62,921 Wipro shares. It accounts for around 4.91% of the company’s total paid-up equity shares. The price set for the buyback is ₹445 – around 20% premium from the stock’s last closing price of ₹374.55.
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Price Action: Wipro’s share price was up 2.76% to trade at ₹384.75 as the markets opened for business on Friday.
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