Shares of Wipro rose 3.5% to Rs 388 in intraday trade on Friday after the company announced a share buyback plan worth Rs 12,000 crore. The company intends to buy back about 4.91% of its stake at Rs 445 per share through tender.

However, Wipro has underperformed the market over the past year, with shares down 26% compared with a 5.4% gain in the S&P BSE Sensex. The stock hit a 52-week low of Rs 351.85 on April 17, 2023.

Meanwhile, the company reported a 0.4% decline in consolidated net profit to Rs 3,074.5 crore in Q4FY23 from Rs 3,087.3 crore a year ago due to macroeconomic uncertainty and lower discretionary spending in key verticals.

Operating income rose 11% to Rs 23,190 crore in Q4FY23 from Rs 20,860 crore a year ago. Revenue, however, fell 0.17% quarter-on-quarter, missing Bloomberg estimates of Rs 23,460.30 crore.

The company’s IT services revenue fell 0.6% QoQ in constant currency (CC), while USD revenue rose 0.7% QoQ and Rupee revenue fell 0.2% QoQ (despite rupee depreciation, possible hedging timing).

The company expects revenue from IT services, including India State Run Enterprise (ISRE) segment, to decline by 1% to 3% quarter-on-quarter in the next quarter.

In the fourth quarter, Wipro won orders with a total contract value (TCV) of more than US$4.1 billion, a year-on-year increase of 29% at constant exchange rates. The company ended the year with its highest annual bookings ever.

Brokerage Motilal Oswal maintained a “neutral” rating on the stock.