Wipro Stocks Climb Nearly 4 % As Company Board Approves Share Buyback Plan

New Delhi: Shares of Wipro climbed nearly 4 per cent in morning trade on Friday after the company's board announced a share buyback of up to Rs 12,000 crore. The stock jumped 3.64 per cent to Rs 388 on the BSE. At the NSE, it gained 3.63 per cent to Rs 388.

It was the biggest gainer on both the Sensex and Nifty. The Wipro board on Thursday announced a share buyback of up to Rs 12,000 crore through the tender offer route, entailing 26.96 crore equity shares at a buyback price of Rs 445 apiece. The buyback price is at an 18 per cent premium to Thursday's closing price of Rs 374.35 a share on BSE. Wipro posted a 0.4 per cent decline in its consolidated net profit to Rs 3,074.5 crore for the March 2023 quarter and guided for a 1-3 per cent sequential decline in revenue from IT services business in the June quarter amid a weak macro environment.

Wipro's Q4 FY2023 show was muted, as the company reported a net profit of Rs 3,074.5 crore, a decline of 0.4 per cent year-on-year. The revenue rose 11.7 per cent year-on-year to Rs 23,190.3 crore. Wipro CEO and Managing Director Thierry Delaporte talked about softness in the banking, financial services, CPG and retail sectors due to the current macro environment but asserted that there are no radical changes in deal cycles, no reduction in deal sizes or cancellations. The ramp-downs, he said, are restricted to discretionary spending.

"In fact, we are seeing more large deals in our pipeline, and we are on it," Delaporte said at the earnings briefing, as he exuded optimism about the company's ability to win deals. "Wipro reported in-line revenue and operating performance but provided a weak outlook for Q1 FY24," according to a report by Institutional Equities, HDFC Securities.