Wipro Announces First Bonus Issue Since 2019: A Look at Its History

Wipro announced its first bonus issue since 2019 on Thursday, with a 1:1 ratio. The IT giant, which also released its quarterly earnings, has declared a total of nine bonus issues to date, according to data from AceEquity. Before today’s announcement, Wipro had issued at least three bonus shares in the past 15 years.

Wipro’s last bonus issue was in 2019, with a 1:3 ratio, where the stock went ex-bonus on March 6, 2019. In 2017, the company had announced bonus shares in the ratio of 1:1. Earlier, in 2010, Wipro issued bonus shares in a 2:3 ratio, and prior to that, in 2005 and 2004, with ratios of 1:1 and 2:1, respectively. In 1997, a 2:1 bonus issue was declared, while in 1995 and 1992, Wipro announced 1:1 bonus issues.

Last year, Wipro also launched a share buyback plan.

Wipro Q2 Results

For the September quarter, Wipro posted a 21.26% year-on-year (YoY) rise in consolidated net profit, reaching Rs 3,207.4 crore, compared to Rs 2,646.3 crore in the same period last year. This exceeded market expectations. However, revenue from operations dropped by 0.95%, falling to Rs 22,301.6 crore from Rs 22,515.9 crore in the previous year. This revenue decline was in line with Street estimates.

Wipro’s IT Services revenue saw a quarter-on-quarter (QoQ) growth of 1.3%, with its margin expanding by 35 basis points. Large Deal Bookings reached $1.5 billion, marking the highest in the past 10 quarters. The company expects its IT Services business revenue to range between $2,607 million to $2,660 million in the third quarter, projecting sequential growth between -2% and 0% in constant currency terms.

Leadership Insights

Srini Pallia, CEO and Managing Director, said, “Our strong execution in Q2 allowed us to meet expectations for revenue growth, bookings, and margins. Large deal bookings once again surpassed $1 billion, and Capco continued its momentum for another quarter. We saw growth in three of our four markets, particularly in BFSI, Consumer, and Technology & Communications sectors. We remain committed to investing in our clients, strategic priorities, and building a strong AI-powered Wipro.”

Aparna Iyer, Chief Financial Officer, added, “Thanks to operational improvements, we expanded margins by 35 basis points, and our EPS grew by 6.8% QoQ. Our operating cash flow was robust at 132.3% of net income in Q2. In the first half of this fiscal year, we generated nearly $1 billion in operating cash flow.”