Wipro Announces Record Buyback Despite Weak Q1 Outlook
Wipro expects first-quarter revenue to decline by up to 2% due to muted demand. The firm also announced a record 150 billion rupee buyback to support shares.
WIPRO LTD has issued a cautious revenue forecast for the upcoming first quarter, as a slowdown in spending by banking and financial clients in the United States continues to weigh on the IT services provider. The company expects revenue for the period to range between $2.60 billion and $2.65 billion, representing a sequential change between a 2% decline and flat growth. This outlook overshadowed the announcement of a record share buyback worth up to 150 billion rupees ($1.61 billion).
The financial results for the fourth quarter showed that Wipro, the fourth-largest IT exporter in India, is still navigating a challenging demand environment. Consolidated revenue rose 7.7% to 242.36 billion rupees, missing the consensus estimate of 243.63 billion rupees. Net profit for the period fell 1.9% to 35.02 billion rupees, also slightly below analyst expectations.
