Wipro Q3 results better than estimates: IT giant announces bonus shares, dividend; 5 takeaways

Wipro Ltd.’s announced its Q3 results on Friday. The company reported a rise in Net profit by 35 per cent to Rs 2,544 crore in the October-December period. The revenue of the IT large cap rose 3.4 percent over the previous quarter to Rs 15,059 crore. The growth in revenue was aided by its $1.5-billion deal with U.S.-based Alight Solutions LLC.  However, IT services revenue jumped nearly 1.8 percent to $2,046.5 million.

Here are the 5 key takeaways:

1. EBIT: Earnings before interest and taxes of the Bengaluru-based company increased 43 per cent over the previous quarter to Rs 2,775.7 crore.

2. Bonus shares: The company will issue bonus shares in the proportion of 1:3—one bonus equity share for every three fully paid-up equity shares held.

3. Dividend of Re 1: Wipro announced an interim dividend of Re 1 per equity share of par value, and Rs 2 each to the members of the company. However, the payment of the interim dividend will be made on or before Feb. 6.

4. Better reserves: Wipro reported Rs 46,847.9 crore as on December 2018 in free reserves, securities premium account and capital redemption reserve account.

5. Increase in share capital: The company has 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.