Wipro Q2 income down 3.4 pc at Rs 2,470 crore, announces Rs 9,500 crore buyback
Oct 13, 2020
Bengaluru (Karnataka) [India], Oct 13 : IT major Wipro on Tuesday reported a 3.4 per cent year-on-year decline in its consolidated net income at Rs 2,470 crore for the second quarter ended September.
The company had posted a profit of Rs 2,553 crore in the year-ago period. On a sequential basis, the numbers grew 3.15 per cent.
Revenue for the company came in at Rs 15,110 crore, down 0.07 per cent on a y-o-y basis. Significantly, Wipro announced a buyback plan of Rs 9,500 crore at Rs 400 per share.
"We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation," said CEO and Managing Director Thierry Delaporte.
"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 prioritised sectors and markets led by vertical solution offerings," he said in a statement.
The company's IT services segment revenue came in at 1,992.4 million dollars, marking an increase of 3.7 per cent quarter-on-quarter while in constant currency.
Meanwhile, IT services' operating margin for the quarter was at 19.2 per cent, an expansion of 0.2 per cent q-o-q and 1.1 per cent y-o-y, the company said in a statement.
Chief Financial officer Jatin Dalal 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 per cent to 19.2 per cent in the IT services segment. Our free cash flows as a percentage of net income for the first half was at 160.7 per cent of net income."
Dalal said the announcement to buyback equity shares is part of the company's philosophy to deliver consistent returns to shareholders.
For the third quarter (Q3 FY21), the company said it expects revenue from its IT dervices business to be in the range of 2,022 million to 2,062 million dollars. This translates to a sequential growth of 1.5 per cent to 3.5 per cent, the company said.
