Wipro gains after share buyback approval

Wipro rose 1.03% to Rs 284 at 10:17 IST on BSE after the company's board of directors approved a proposal to buyback equity shares of the company at Rs 325 per share.

The announcement was made after market hours on Tuesday, 16 April 2019.

Meanwhile, the S&P BSE Sensex was down 103.36 points, or 0.26% to 39,172.28

On the BSE, 14.01 lakh shares were traded in the counter so far compared with average daily volumes of 49.84 lakh shares in the past two weeks. The stock had hit a high of Rs 289.65 and a low of Rs 281 so far during the day.

Wipro's consolidated net profit fell 1.07% to Rs 2483.50 crore on 1.45% rise in total income to Rs 15915.30 crore in Q4 March 2019 over Q3 December 2018. The result was announced after market hours on Tuesday, 16 April 2019.

Abidali Z. Neemuchwala, CEO and Executive Director, Wipro, said the company has built a strong foundation for growth on the back of healthy order book and continued investments in big bet areas of Digital, Cyber security, Engineering services and Cloud.

In its outlook for Q1 June 2019, Wipro expects revenue from IT services business to be in the range of $2,046 million to $2,087 million. This translates to a sequential growth of -1% to 1% excluding the impact of the divestment of Workday and Cornerstone On Demand business which was concluded in Q4 March 2019. The outlook is based on the following exchange rates: GBP/USD at 1.32, Euro/USD at 1.14, AUD/USD at 0.71, USD/INR at 70.16 and USD/CAD at 1.33

The board of directors of Wipro has approved a proposal to buyback up to 32.30 crore shares of the company for an aggregate amount not exceeding Rs 10500 crore, being 5.35% of the total paid-up equity share capital, at a price of Rs 325 per share. Members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback.

Wipro is a leading global information technology, consulting and business process services company.

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