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Wipro Approves Rs11,000 crore for share buyback, shows better Q1 results than expected

Wipro Ltd declares Rs11,000 crore buyback of shares and reports unexpected revenue in Q1 of current fiscal year.
BY BEx Bureau
BusinessEx
Jul 21, 2017

Wipro Ltd, on Thursday, reported a rise in revenue increase by $1.97billion (0.9% sequentially and 0.3% in constant currency terms) in Q1from the financial services and energy and utilities segments. On Thursday, companys board had approved a Rs11,000 crore to buyback shares.

The trend of share buyback is being followed in IT companies in India, TCS Ltd, made a transaction of share buyback in May worth Rs16000 crore, while Infosys has also promised to return Rs13,000 crore to shareholders through share and dividend buyback in this fiscal year. HCL Technologies Ltd is also expected to start its Rs3,500- crore-buyback in the coming months.

A Bloomberg survey of analysts had estimated revenue of $2.06 billion (Rs13,242.50 crore) and a profit of $316.01 million (Rs2,031.5 crore).

The buyback, at Rs320 per share, is expected to kick off sometime in October. Wipros shares closed at Rs270 after the announcement on Thursday.

Wipro further expects to grow at best 1.5% in current July- September period, which will help the company to match the industry growth numbers at the end of the current fiscal year.

I feel very good with the kind of progress we have made and the disciplined execution of strategy, Wipro chief executive officer Abidali Neemuchwala said in an interview. Looking at the metrics, I believe we are progressing well on our trajectory of delivering industry-matching growth numbers by March quarter.

Wipro has reported industry-leading growth from its oil and gas clients (which account for 13.4% of revenue) and BFSI clients (26.7% of total business), as per the reports from LiveMint.

CFO Jatin Dalal told TOI, "We had 130-basis-point (100bps = 1 percentage point) impact from adverse forex movements and 20bps from wage hikes for the quarter. This is the first time after a long period where we have seen the rupee appreciate. As we get into Q2, we have two months of salary impact to mitigate."

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