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Bengaluru-based IT services company Wipro on Tuesday reported a 3.4% decline in net profit for the second quarter ended September 30, at Rs 2,466 crore. Its net profit in the corresponding quarter of the last fiscal was Rs 2,553 crore.

The company’s IT products segment revenue for the quarter stood at Rs 170 crore. Wipro’s net income for the quarter stood at Rs 2,470 crore, a decrease of 3.4% YoY. The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 237.5 million equity shares of Rs 2 each (representing 4.16% of total paid up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer.

The buyback price is Rs 400 ($5.4 1 ) per equity share payable in cash for an aggregate amount not exceeding Rs 9,500 crore ($1.3 billion ).

The IT company expects Revenue from 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% to 3.5%.

Wipro CEO and Managing Director Thierry Delaporte said, “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 and markets led by vertical solution offerings.”

Wipro Chief Financial Officer Jatin Dalal said, “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% to 19.2% in the IT Services segment. Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7% of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”

Earlier, the company’s shares closed at Rs 375.73, a 0.48% decrease from its previous close on the BSE on Tuesday.

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