Wipro Q2 profit flat at ₹2,667.3 cr; revenue dips 0.10%

IT major Wipro Ltd announced financial results for the July to September quarter on Wednesday. The company’s consolidated profit stood at ₹2,667.3 crore, up only by 0.6% year-on-year, against ₹2,649.1 crore in the same period last year. The IT major expects its IT services revenue growth in the December quarter at -3.5% to -1.5%.

"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% to -1.5% in constant currency terms," says Wipro.

In the September quarter, Wipro's revenue declined by 0.10% to ₹22,515.9 crore, as against ₹22,539.7 crore in the corresponding period of the previous year.

"We continue to win in the market despite the uncertain macro environment. We ended the second quarter with 22 accounts above the $100 million range, which is double the number we had in FY’21. Our large deal total contract value reached $1.3 billion—highest in the last nine quarters," says Thierry Delaporte, CEO & MD, Wipro.

The company’s total income stood at ₹23,255.57 crore in Q2 FY24, as against ₹23,052 crore in the same period last year. Its total expenses in the September quarter surged 0.6% year-on-year to ₹19,743.5 crore against ₹19,624.7 crore in the same period last year. In the September quarter, the IT services operating margin stood at 16.1%, up 10 bps (basis points) sequentially and 100 bps year-on-year. During the quarter, the earnings per share of the company stood at ₹5.06, an increase of 4.1% YoY.

"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," says Delaporte.

The company's voluntary attrition rate stood at a 9-month low of 13.4% in the September quarter. During the quarter under review, the company’s employee headcount declined from 2,62,109 to 2,44,707. Ahead of the development, the share price of the IT major closed 0.94% lower at ₹407.40. During the session on Wednesday, the company’s market capitalisation stood at ₹2,12,739 crore as 70,992 shares exchanged hands on the BSE as against the two-week average of 2.40 lakh shares.