Wipro Announces Record Share Buyback After Missing Q4 Revenue Estimates
India's Wipro Ltd announced a record share buyback of up to 150 billion rupees ($1.61 billion) following a slight miss in fourth-quarter revenue expectations. Consolidated sales for the three months ended March 31 rose 7.7 percent to 242.36 billion rupees, falling short of the analyst consensus estimate of 243.63 billion rupees. The shortfall was attributed to delayed technology spending in the energy and banking sectors, driven by geopolitical uncertainties from the Middle East conflict and caution surrounding new artificial intelligence tools. Additionally, business from key client Estee Lauder slowed after it engaged Accenture as an additional IT vendor. Net profit declined 1.9 percent to 35.02 billion rupees, also missing estimates. Three of five verticals reported declines, with energy dropping 5.9 percent and banking, the largest segment, falling 0.5 percent. Total deal wins reached $3.5 billion, an improvement from the previous quarter but lower than the prior year. Wipro forecast flat to slightly declining revenue for the current first quarter. This announcement contrasts with rival Tata Consultancy Services, which recently beat earnings estimates.
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Wipro Announces Record Share Buyback After Missing Q4 Revenue Estimates
India's Wipro Ltd announced a record share buyback of up to 150 billion rupees ($1.61 billion) following a slight miss in fourth-quarter revenue expectations. Consolidated sales for the three months ended March 31 rose 7.7 percent to 242.36 billion rupees, falling short of the analyst consensus estimate of 243.63 billion rupees. The shortfall was attributed to delayed technology spending in the energy and banking sectors, driven by geopolitical uncertainties from the Middle East conflict and caution surrounding new artificial intelligence tools. Additionally, business from key client Estee Lauder slowed after it engaged Accenture as an additional IT vendor. Net profit declined 1.9 percent to 35.02 billion rupees, also missing estimates. Three of five verticals reported declines, with energy dropping 5.9 percent and banking, the largest segment, falling 0.5 percent. Total deal wins reached $3.5 billion, an improvement from the previous quarter but lower than the prior year. Wipro forecast flat to slightly declining revenue for the current first quarter. This announcement contrasts with rival Tata Consultancy Services, which recently beat earnings estimates.
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