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Indian IT major Wipro has been among the companies that has consistently rewarded its shareholders over the long term in a way of issuing bonus shares. The company has declared bonus issues five times since 2004. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

The latest bonus shares offering was more than three years ago in March 2019, when the IT company offered its shareholders bonus shares in the ratio of 1:3, which means that the shareholders got an extra share for every three shares they held in the company.

Prior to that, the IT stock had announced the last four bonus shares issues in June 2017 in 1:1 ratio, June 2010 in the ratio of 2:3, August 2005 in the ratio of 1:1 and June 2004 in the ratio of 2:1, as per data by Capitaline.

Wipro Limited is a leading technology services and consulting company. Shares of Wipro are down more than 28% in 2022 (year-to-date or YTD) so far.

For the first quarter ended June 2022 or Q1 FY23, the Indian IT company’s net profit declined 20.7% to 2,563 crore from 3,232 crore in the year-ago period. The revenue for the June quarter grew 19% annually to 21,529 crore on the back of a strong demand environment for cloud, digital engineering, and cyber security services.

Wipro's expenses during the first quarter ended June 2022, which includes employee cost, jumped almost 23% to 18,647.5 crore, with attrition rate at 23.3%. The operating margin in the IT services segment decreased by 200 basis points to 15% quarter-on-quarter. Wipro had 2,58,574 employees as of June 30, 2022.

Wipro forecast higher revenue growth from IT services on the back of a strong project pipeline, and said margins likely bottomed out after higher expenses dented June-quarter profit.

On the outlook for Q2, the firm said, "We expect revenue from our IT Services business to be in the range of USD 2,817 million to USD 2,872 million. This translates to a sequential growth of 3 per cent to 5 per cent". With its Q2 guidance, the company exuded confidence it will "very comfortably" grow in double-digits for fiscal 2023.

 

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