Wipro Q2 Results: Net Profit Rises 6%, Beats Estimates

IT firm Wipro Ltd. on Thursday posted a 6.2% sequential rise in its net profit to Rs 3,227 crore in the quarter ended Sept. 30, 2024, which is higher than the consensus estimate of Rs 3,009 crore shared by analysts tracked by Bloomberg.

In the June quarter, the company had logged a net profit of Rs 3,037 crore.

Wipro's revenue during the second quarter rose 1.5% sequentially to Rs 22,302 crore, which is in line with the consensus estimate of Rs 22,235 crore of analysts tracked by Bloomberg.

• Revenue up 1.5% at Rs 22,302 crore (Estimate: Rs 22,235 crore).

• Net profit rose 6% Rs 3,227 crore (Estimate: Rs 3,009 crore).

• Ebit up 1.3% at Rs 3,672 crore (Estimate: Rs 3625 crore).

• Margin flat at 16.5% (Estimate: 16.3%).

Wipro has tapered its guidance for the next quarter to (-) 2.0% to 0.0% in constant currency terms. It had guided in the range of -1 to 1% for the second quarter previously. Revenue from IT Services business segment is expected to be in the range of $2,607 million to $2,660 million, said the company. 

“Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins," said Chief Executive Officer and Managing Director Srini Pallia.

The company continued to expand its top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter, he said.

"We grew in three out of four markets, as well as; in BFSI, Consumer and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro," Pallia said.

IT services operating margin for the quarter was at 16.8%, an increase of 0.3% QoQ and 0.7% YoY. Operating cash flows stood at Rs 42.7 billion, an increase of 10.5% YoY. 

“On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ," said Chief Financial Officer Aparna Iyer. "Our operating cash flow continues to be robust at 132.3% of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1B in operating cash flow.”

Total bookings came in at $3,561 million, with large deal bookings at $1,489 million, an increase of 28.8% QoQ and 16.8% YoY in constant currency. Employee headcount for the quarter was 2,33,889, a decrease of 502 employees. Voluntary attrition was at 14.5% on a trailing 12-month basis. 

On Thursday, Wipro's shares fell 0.65% to Rs 528.8 apiece on the BSE even as the benchmark Sensex ended the day 0.61% lower at 81,006.61 points. The quarterly results were declared after market hours.