Shares of IT services major Wipro on Wednesday plunged nearly 7 per cent in early trade on the bourses after the company posted 3.4 per cent decline in consolidated net profit for the September quarter.
On Tuesday, the IT giant posted a 3.4 percent decline in consolidated net profit to Rs 2,465.7 crore in the three months ended September and projected revenue growth in the December quarter even as it announced an up to Rs 9,500 crore buyback plan at Rs 400 per equity share. The Bengaluru-based company, which had registered a net profit (attributable to equity holders of the company) at Rs 2,552.7 crore in the year-ago period, registered an almost flat year-on-year revenue growth at Rs 15,114.5 crore in the latest September quarter.
On a quarter-on-quarter basis, the company's net profit climbed over 3 per cent, while revenue was up by little over 1 per cent.
Wipro CEO and Managing Director Thierry Delaporte said the demand environment has improved from the first quarter even though the pace of decision making remains a bit slower on the larger deals.
The buyback proposal, which is subject to shareholders' approval, will involve purchase of up to 23.75 crore equity shares, representing 4.16 per cent of the company's total paid up equity capital, at Rs 400 per share. The buyback size will be up to Rs 9,500 crore.
A week before, its rival Tata Consultancy Services (TCS) had announced a mega Rs 16,000-crore buyback plan at Rs 3,000 per equity share.
(With PTI inputs)