Wipro's ₹15,000 Crore Buyback Fails to Boost Investor Confidence Amid Earnings Miss
Even a Rs 15,000-crore buyback fails to cheer Wipro investors
The Economic Times
Image: The Economic Times
Wipro, based in Mumbai, India, saw its stock drop by 2.8% despite announcing a ₹15,000 crore ($1.8 billion USD) share buyback at a 19% premium. The company's March quarter earnings fell short of expectations, with a 2% decline in net profit, leading to cautious outlooks from analysts.
- 01Wipro's share buyback of ₹15,000 crore ($1.8 billion USD) announced at a 19% premium failed to lift stock prices.
- 02The company's consolidated net profit for the March quarter declined by 2% to ₹3,502 crore ($421 million USD).
- 03Analysts express concerns over Wipro's revenue contraction and performance relative to peers.
- 04Goldman Sachs and Kotak Institutional Equities maintain a cautious outlook on Wipro's future growth.
- 05The stock fell by as much as 4% during trading before closing at ₹204.30.
Advertisement
In-Article Ad
Wipro, India's fourth-largest IT services company, faced significant selling pressure on the Nifty index after reporting disappointing earnings for the March quarter. Despite announcing a ₹15,000 crore ($1.8 billion USD) share buyback at a 19% premium to its previous closing price of ₹210, the stock fell by 2.8%, ending the day at ₹204.30. The company's net profit declined by 2% year-over-year to ₹3,502 crore ($421 million USD), raising concerns among analysts about its future performance. Goldman Sachs highlighted a weaker-than-expected performance and suggested that revenue contraction is likely to continue in the near term. Kotak Institutional Equities echoed this sentiment, noting that while Wipro's margins are strong, the company is losing ground to competitors, and recent deal wins have not translated into significant growth. Overall, the cautious outlook from brokerages reflects a challenging macroeconomic environment for Wipro.
Advertisement
In-Article Ad
Wipro's underperformance and cautious outlook could affect investor confidence and impact future stock performance, potentially leading to reduced investment in the company.
Advertisement
In-Article Ad
Reader Poll
Do you think Wipro's buyback will positively impact its stock in the long term?
Connecting to poll...
More about Wipro
Read the original article
Visit the source for the complete story.