Days after outsourcing market leaders TCS and Infosys reported better than expected fourth-quarter numbers, Wipro came out with a quarterly report card that were largely in line with its own expectations and market estimates, and forecast lukewarm first-quarter revenue growth of about 1-3%.
Wipro's board also approved a buyback of shares at Rs. 625 per share, a premium of about 3.8% to Wipro's closing price on Wednesday. Wipro said the board had approved a proposal to buy back about 4,00,00,000 shares at about Rs. 2500 crore.
On Wednesday, Wipro shares closed up 2.1% to Rs. 6011. on the NSE. For the June quarter, Wipro forecast revenue in the range of $1.901 billion to $1.939 billion.
For the January-March quarter, revenue from Wipro's IT services business stood at $1.88 billion, up about 6.1% from last year. In constant currency terms, Wipro posted revenue of about $1.887 billion. Net profit stood at $387 million, up 4% from last year.
In January, Wipro had said that revenues for the quarter ending on March 31 would be $1.875 billion to $1.912 billion.
Earlier in April, Wipro had said that its board would considering a share buyback on the day of its fourth-quarter results.
"Our focus is to drive significant growth in our 'run' business through integrated services and hyper automation while gaining leadership in the 'change' business through investments in digital and consulting capabilities," said Wipro CEO Abidali Neemuchwala in a statement.
Analysts on an average were expecting Wipro to post revenue of around $1.895 billion, according to an ET Poll of more than a dozen analysts.
While Wipro posted numbers that came in line with estimates, the latest performance pales in comparison to the forecast-beating numbers of cross-town rival Infosys last week and also falls short of growth rates at other larger rivals such as TCS.