Bengaluru-based IT giant Wipro on Wednesday posted its second quarter profit at Rs 2,646.30 crore, down 0.5 per cent as against Rs 2,659.00 crore during the same period last year. It posted revenue from operations at Rs 22,515.90 crore during the quarter ended September 2023, down 0.1 per cent in comparison to Rs 22,539.70 crore during the quarter ended September 2022, missing estimates. According to CNBC TV18 poll, Wipro was expected to post its Q2 revenue at Rs 22,760 crore and EBIT at Rs 3,642 crore
Wipro has cut the guidance of -3.5 per cent to -1.5 per cent in constant currency terms. Earnings per share for the quarter, it said, was at Rs 5.06, posting an increase of 4.1 per cent YoY. Its operating cash flows at 145 per cent of net Income for the quarter was at Rs 3860.00 crore.
The IT company said that its IT services segment revenue was at $2,713.3 million, recording a decrease of 2.3 per cent QoQ. IT services segment EBIT for the quarter was Rs 3610.00 crore, up 6 per cent YoY. The segment operating margin for the quarter was at 16.1 per cent, up 10 bps QoQ and 100 bps YoY. “We expect revenue from our IT Services business segment to be in the range of $2,617 million to $2,672 million. This translates to sequential guidance of -3.5 per cent to -1.5 per cent in constant currency terms,” Wipro said.
Further, the IT Products segment revenue for the quarter was at Rs 147.00 crore and the segment posted a loss of Rs 47 crore during the quarter in review.
The IT major posted large deal bookings reaching $1.3 billion, up 79 per cent YoY and 6 per cent QoQ. Total bookings of $3.8 billion, mark a 6 per cent YoY increase, it said.
“We continue to win in the market despite the uncertain macro environment. We ended the second quarter with 22 accounts above the $100M range, which is double the number we had in FY21.Our large deal total contract value reached $1.3 billion—highest in the last nine quarters,” said Thierry Delaporte, CEO and Managing Director, Wipro.
“Against a challenging environment, we continue to take the bold decisions needed to realize our long-term ambitions. We are investing in our technology infrastructure and streamlining our operations and delivery to drive profitable growth. We are training and reskilling our people so they can be ready for an AI-driven future. The investments we made in our ai360 strategy are helping us realize significant efficiencies across our organization and creating an early leadership position in this fast-evolving space. We are confident that these investments will keep us resilient and competitive in an ever shifting business and economic landscape,” Thierry Delaporte added.
As on September 30, 2023, Wipro had a total headcount of 244,707. The company said that its voluntary attrition has continued to moderate on-quarter basis, coming in at 9-quarter low of 13.4 per cent in Q2FY24.
Aparna C Iyer, Chief Financial Officer, Wipro, said, “We remain focused on profitable growth despite a challenging market. Our disciplined approach to improve efficiency, productivity and utilization has led to an increase of 100 bps YoY in our IT services operating margins. Our absolute IT services segment EBIT grew 6 per cent YoY. We generated strong operating cash flow of 145 per cent of net income for the quarter.”