Wipro Limited and Wipro IT Services, had acquired 60% stake in Aggne Global in February 2024. File.
| Photo Credit: Reuters

The DTS unit would bring to Wipro a robust foundation in digital engineering and ER&D, with strengths spanning domain-led design, connected products, and software platforms, says Wipro.
| Photo Credit: Reuters

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The DTS unit would bring to Wipro a robust foundation in digital engineering and ER&D, with strengths spanning domain-led design, connected products, and software platforms, says Wipro.
| Photo Credit: Reuters

READ MORE

The capital allocation policy has been revised to increase the payout percentage from 45-50% to 70% or above of the net income cumulatively on a block of three-year period, the company statement said. File
| Photo Credit: Reuters

IT services company Wipro on Friday (January 17, 2025) reported a 24.4% year-on-year rise in its consolidated net profit for the just-ended December quarter at about ₹3,354 crore.

The Bengaluru-based tech major saw its revenue from operations inch up by 0.5% to about ₹22,319 crore.

For the coming March quarter, Wipro sees revenue from IT services business in the range of $2,602 million to 2,655 million, which translates into a sequential guidance of a decline of 1% to 1% growth, according to a regulatory filing.

It has declared an interim dividend of ₹6 per equity share/ADS. Wipro board has approved a revised capital allocation policy that increases the committed payout percentage to 70% or above in a block of three years.

The capital allocation policy has been revised to increase the payout percentage from 45-50% to 70% or above of the net income cumulatively on a block of three-year period, the company statement said.

Srini Pallia, CEO and Managing Director, said strong in quarter execution helped the company deliver above the top end of revenue guidance in a seasonally weak quarter.

“We also achieved our highest margins in the past three years while continuing to invest in our people,” Mr. Pallia said in the statement.

Wipro closed 17 large deals with a total value of $1 billion.

According to Wipro’s Q3 scorecard, the profit attributable to equity holders of the company jumped 24.4% year-on-year to ₹3,353.8 crore for the quarter ended December 2024.

“We are advancing steadily and investing decisively to lead our clients in an AI-driven future,” the top honcho said.

Also read: Infosys Q3 net profit rises 11.4%; revises full-year revenue guidance upwards

Aparna Iyer, Chief Financial Officer, said the company expanded margins for a fourth consecutive quarter, enabling it to achieve previously-stated target margin of 17.5%.

“We are pleased to share that the board has approved our revised capital allocation policy that increases the committed payout percentage to 70% or above in a block of 3 years. In addition, board has also declared an interim dividend of ₹6 per share,” Ms. Iyer said.

New Delhi:

The National Company Law Appellate Tribunal has dismissed an operational creditor’s petition to initiate insolvency proceedings against Wipro Ltd.

A two-member Chennai bench of the appellate tribunal held earlier that there was a pre-existing dispute over the payment between Wipro and the petitioner and observed that the Insolvency and Bankruptcy Code was not framed for being a “mere recovery legislation for creditors”.

The National Company Law Appellate Tribunal has upheld the order of the NCLT.

On January 16, 2020, the Bengaluru Bench of the National Company Law Tribunal had dismissed the plea by Tricolite Electrical Industries in the capacity of operational creditor.

The order was challenged by the Delhi-based operational creditor, a manufacturer of ‘LT/ HT Electric Panels’ before the appellate body NCLAT.

However, the NCLAT also dismissed it after observing, “We are satisfied that a ‘dispute’ truly existed for the Respondent Company (Wipro) to have withheld 3 per cent of the total invoice amount”.

Under the IBC, the insolvency process against any corporate debtor is generally initiated only in clear cases where a real dispute between the parties as to the debt owed did not exist.

The dispute is related to the supply of goods for a government project implemented by Wipro, where it was awarded the work of design, manufacture, supply and installation of MV Panels.

Pursuant to that, Wipro had placed purchase orders for a total supply worth Rs 13.43 crore.

According to the appellant, it supplied the goods in a timely manner and raised various invoices, for which Wipro made a payment of 97 per cent of the value of the invoices, but 3 per cent of the total value of the invoices, which is a substantial amount, was kept outstanding.

Despite several reminders, it was not paid and did not reply to the Demand Notice issued by it.

Wipro denied the allegations, arguing that there is a pre-existing dispute between the parties, which is reflected in their email. It has already paid 97 per cent of the amounts due, and the appellant had sought to question the basis and the right of the respondent to levy liquidated damages to the tune of 3 per cent of the contract value.

Agreeing with it, the NCLAT said: “It is the consistent stand of Wipro that 97 per cent of the amount was paid and the balance 3 per cent was kept on hold only on account of evaluating customer satisfaction and it was established that there was a delay of six weeks on behalf of the Appellant Company in executing the job assigned to them on account of which liquidated damages/Penalty of Rs 40,56,539, which is as per the terms of the contract was levied”.

“Therefore, this Tribunal is of the considered view that there is a pre-existing dispute, which is not a spurious defence which is a mere bluster,” said the NCLAT bench comprising Justice M Venugopal and Shreesha Merla.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)