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Wipro net profit rises 31.8% in Q3, company announces 1:3 bonus share offer

The net profit in the October-December 2017 quarter was at Rs 1,930.1 crore.

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: Wipro Chief Executive Officer and Executive Director Abidali Neemuchwala (2nd R) with CFO Jatin Dalal (L) COO Bhanu Murthy (2nd L) and Chief HR officer Surabh Govil pose for photos after addressing a press conference to announce the companys third quarter financial results in Bengaluru
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 IT services major Wipro Friday posted a 31.8 % increase in consolidated net profit at Rs 2,544.5 crore for October-December 2018 compared to the year-ago period. Wipro's board has also approved an issue of bonus shares - offering one bonus share for every three held by shareholders, a BSE filing said.

The net profit in the October-December 2017 quarter was at Rs 1,930.1 crore. Wipro's revenue from operations expanded 10.17 % to Rs 15,059.5 crore during the period under review from Rs 13,669 crore in the third quarter of FY2017-18.

"Our strategic investments, backed by strong client relationships and client spends towards enterprise modernisation and digital transformation have enabled us to deliver a very satisfying quarter," Wipro CEO and Executive Director Abidali Z Neemuchwala said. The company's IT services segment revenue, which accounts for a bulk of its topline, was at USD 2,046.5 million (around Rs 14,555 crore), up 1.8 % sequentially. 

Wipro expects its IT services business revenue to be in the range of USD 2,047 million to USD 2,088 million for the March quarter, which translates into flat to 2 % growth sequentially. "Issue of bonus equity shares in the proportion of 1 :3, that is one bonus equity share of Rs 2 each for every three fully paid-up equity shares held... subject to approval of the members of the company," the filing said.The Bengaluru-based company has announced an interim dividend of Re 1 per equity share with January 30, 2019 as the record date, it added. 

Wipro board on Friday approved an issue of bonus shares wherein shareholders will get one bonus share for every three shares held by them."Issue of bonus equity shares in the proportion of 1:3, that is one bonus equity share of Rs 2 each for every three fully paid-up equity shares held and a bonus issue...of one ADS for every three ADS held, as on the record date, subject to approval of the Members of the company," Wipro said in a regulatory filing.

The record date for reckoning eligible shareholders (including ADS holders) entitled to receive bonus shares will be communicated later, it added.
Wipro had announced a bonus issue of 1:1 in April 2017.The filing said Wipro has an aggregate amount of Rs 46,847.9 crore as on December 2018 in free reserves, securities premium account and capital redemption reserve account.The company has also increased the authorised share capital from Rs 1,126.5 crore Rs 2,526.5 crore by creation of additional 700 crore equity shares of Rs 2 each, it added.

Cash-laden Indian IT firms have been returning surplus cash on their books to shareholders by way of dividends and buybacks. Earlier this month, Infosys had announced a buyback offer of Rs 8,260 crore. 

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