Wipro Launches Massive Share Buyback After Revenue Slip

Wipro announced a significant share buyback program, valued at up to 150 billion rupees, on Thursday. This move comes shortly after the company reported a marginal miss in its quarterly revenue for the three months ended March 31. Consolidated sales increased by 7.7% to 242.36 billion rupees, falling short of analysts' projections.

The Bengaluru-based firm's revenue was affected by several factors. Clients deliberately reduced their technology spending, influenced by the launch of advanced AI tools and prevailing geopolitical uncertainties stemming from the Middle East conflict. Compounding these issues, a major client, Estee Lauder, engaged Accenture as an additional IT vendor, which consequently lowered its contribution to Wipro's revenue.

The company's banking vertical, which constitutes about a third of its revenue, experienced a 0.5% decline. The energy sector saw a more substantial drop of 5.9%. For the ongoing first quarter, Wipro forecasts revenue to either decline by 2% or remain flat sequentially, projecting a range of $2.6 billion to $2.65 billion. Net profit for the quarter dipped 1.9% to 35.02 billion rupees.