Wipro Q2 net profit down 3.4%, IT firm announces Rs 9,500 crore share buyback

New Delhi: IT major Wipro on Tuesday announced its earnings result for the second quarter (Q2) ending September and also stated that it will go for a share buyback worth Rs 9,500 crore at Rs 400 per share.

Billionaire Azim Premji led IT firm said its net profit declined 3% year-on-year (YoY) at Rs 2,465.70 crore as compared to Rs 2,552.70 crore last year.

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.

“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 prioritised sectors and markets led by vertical solution offerings,” said CEO and Managing Director Thierry Delaporte.

However, company’s IT services segment revenue came in at 1,992.4 million dollars, marking an increase of 3.7% quarter-on-quarter.

The 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.

Claiming that this was a quarter of strong performance on margins and cash flows, the Chief Financial officer Jatin Dalal said the decision to buyback equity shares is part of company’s strategy to deliver consistent returns to shareholders.