Wipro on Tuesday reported a 3.4 per cent year-on-year (YoY) fall in its consolidated net profit at Rs 2,465.7 crore for the quarter ended September 2020 (Q2FY21). The company had posted a profit of Rs 2,552.7 crore in the year-ago period. On a sequential basis, numbers grew 3.15 per cent.
Revenue for the company came in at Rs 15,114.5 crore, down 0.07 per cent on a YoY basis. Further, Wipro also announced a buyback of Rs 9,500 crore at Rs 400 per share. The buyback price is over 6 per cent higher than Tuesday's closing price on the exchanges. READ ABOUT IT HERE
“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," said Thierry Delaporte, CEO and Managing Director in a result release note.
The company's IT Services segment revenue came in at $1,992.4 million, an increase of 3.7 per cent QoQ while in constant currency, IT Services' revenue increased by 2 per cent QoQ. Meanwhile, IT Services' operating margin for the quarter was at 19.2 per cent, an expansion of 0.2 per cent QoQ and 1.1 per cent YoY, the company said in its press release.
“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. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders," said Jatin Dalal, chief financial officer (CFO).
For the third quarter (Q3FY21), the company said it expects revenue from its IT Services business to be in the range of $2,022 million to $2,062 million. This translates to a sequential growth of 1.5 per cent to 3.5 per cent, the company said.
While unveiling the Q2 numbers, Wipro also announced that it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.
Wipro Q2 result