Wipro slipped over 2 per cent to trade near its 52-week low on Friday after the company announced that Chief Executive Officer (CEO) and Managing Director (MD) Abidali Z Neemuchwala has decided to step down due to family commitments.
At 11:17 am, shares of the company were trading 1 per cent lower at Rs 238.25 apiece on the BSE. The stock hit a low of Rs 235.30 during the session. It had hit a 52-week low of Rs 232.35 on October 1, 2019.
The S&P BSE Sensex, on the other hand, was trading 79 points or 0.19 per cent higher at 40,834.34 levels.
Neemuchwala, 52, is leaving due to “family commitments” and will continue to hold office until a successor is appointed, said Wipro in a regulatory filing.
“The Board of Directors has initiated a search to identify the next Chief Executive Officer. Abid will continue to hold the office of CEO & Managing Director until a successor is appointed for a smooth transition and to ensure that business continues as usual,” the company said.
“lt has been my honour and privilege to serve Wipro, a company with a rich legacy of almost 75 years. We have made considerable progress in our transformation journey, improved our delivery engine and institutionalised deeper client centricity. I thank Azim Premji, Rishad, our Board of Directors, my Wipro colleagues and customers for their support over the years,” said Neemuchwala.
For December quarter, the company posted 2.17 per cent dip in consolidated net profit at Rs 2,455.9 crore and estimated up to two per cent revenue growth for the fourth quarter. Wipro’s net profit, attributable to shareholders, in the year-ago period was at Rs 2,510.4 crore. Its revenue from operations grew 2.7 per cent to Rs 15,470.5 crore during the period under review from Rs 15,059.5 crore in the same quarter last year (as per Ind-AS). Earnings per share (EPS) for the quarter was Rs 4.3 per share and grew 3.2 per cent year-on-year.