The figure is in-line with analyst projections. Brokerages like CLSA, JPMorgan, Morgan Stanley, UBS had projected the figure to be a negative 2% to 0%, while Nomura and Citi saw the growth guidance figure between -1% to +1% in constant currency terms.
Wipro projects the IT services business segment to be in the range of $2,597 million to $2,651 million, which implies a sequential guidance of -2% to 0% in constant currency terms.
Additionally, the board of Wipro has also approved a buyback of equity shares. The total buyback size is worth ₹15,000 crore, which is lower than the previous instance. This is the first time that Wipro announced a share buyback, since the ₹16,000 crore buyback in 2023.
The buyback price has been fixed at ₹250 per share, which is a premium of 19% to Thursday’s close of ₹210 per share. The buyback of shares will be done through the tender offer process, which means that the shares will be repurchased at a fixed price. The buyback is subject to shareholder approval.
For the quarter, Wipro reported revenue of ₹24,017 crore in rupee terms, lower than the CNBC-TV18 poll of ₹24,343 crore. Earnings Before Interest and Tax (EBIT) stood at ₹4,155 crore, in-line with the CNBC-TV18 poll projection of ₹4,158 crore.
In US Dollar term, Wipro’s revenue stood at $2,651 million, in comparison to the CNBC-TV18 poll of $2,666 million. On a sequential basis, Wipro’s US Dollar revenue grew by 0.6%.
EBIT margins for the quarter stood at 17.3%, marginally higher than the CNBC-TV18 poll of 17.1%, but lower than the previous quarter’s figure of 17.6%.
Total bookings for the quarter stood at $3,455 million, up 3.2% sequentially in constant currency terms. Large deal bookings were at $1,440 million during the quarter.
Shares of Wipro ended little changed on Thursday ahead of the earnings announcement at ₹210.15. The stock has risen 8% in the last one month.
