Today, Wipro unveiled its financial results for the July-September quarter of the fiscal year 2023-24 (Q2FY24). The company reported a consolidated net profit of ₹2,667.3 crore, which is a slight increase from ₹2,649.1 crore during the same period last year. In its regulatory filing, Wipro disclosed that its consolidated revenue for this quarter stood at ₹22,515.9 crore, slightly lower than the ₹22,539.7 crore it recorded in the September quarter of the fiscal year 2022.
Simultaneously, on October 18th, Wipro made an announcement regarding the approval by its board for the merger of five of its wholly-owned subsidiaries into a single entity named ‘Wipro Ltd.’ This merger is contingent upon the approval of regulatory bodies, including the National Company Law Tribunal, as stated in Wipro’s official statement. The five subsidiaries slated for amalgamation are as follows:
Wipro HR Services India Private Limited
Wipro Overseas IT Services Private Limited
Wipro Technology Product Services Private Limited (formerly known as Encore Theme Technologies Private Limited)
Wipro Trademarks Holding Limited
Wipro VLSI Design Services India Private Limited (collectively referred to as “Transferor Company”)
Wipro has outlined several objectives for this merger, including streamlining business operations, achieving operational synergies, reducing various overhead costs such as administrative and managerial expenses, optimizing the company’s legal entity structure, and significantly simplifying legal and regulatory compliance requirements.
Wipro emphasized that because the Transferor Companies are wholly owned subsidiaries of the Transferee Company, there will be no allocation of Transferee Company shares in exchange for Transferor Company shares under the proposed amalgamation scheme, as per the information provided in Wipro’s exchange filing.
In stock market news, Wipro’s shares concluded the day at Rs. 407.50, experiencing a marginal decrease of 0.95% on the National Stock Exchange (NSE) on Wednesday.