Wipro Q2 results: Net profit grows 21%, revenue down 1%; announces 1:1 bonus share
IT major Wipro on Thursday reported a 21% jump in consolidated net profit at ₹3,209 crore for the quarter ended September 2024. The company had posted ₹2,646 crore profit in the year-ago period.
The consolidated revenue dropped 1% year-on-year to ₹22,302 crore in the July-September quarter of the current fiscal, from ₹22,543 crore in the corresponding period last year, Wipro says in an exchange filing today.
On the standalone basis, the profit increased by 31.6% to ₹2,713.5 crore versus ₹2,061.3 crore in the year ago period, while revenue from operations rose by 1.2% to ₹16,895.8 crore from ₹16,680.7 crore in the previous fiscal.
“Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 Bn once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, Consumer and Technology and Communications sectors,” says Srini Pallia, CEO and Managing Director.
As of September 30, 2024, total contract value (TCV) was at $3,561 million, which included large deal bookings of $1,489 million, highest in 10 quarters. The large deal bookings grew 28.8% QoQ and 16.8% YoY in constant currency.
As per the company, IT services segment revenue was at $2,660.1 million, an increase of 1.3% QoQ and decrease of 2% YoY. The operating margin for the segment was at 16.8%, up 0.3% QoQ and 0.7% YoY.
Going ahead, Wipro expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million, translating to sequential guidance of (-) 2.0% to 0.0% in constant currency terms.
“On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ. 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,” says Aparna Iyer, Chief Financial Officer.
The company informed exchanges that voluntary attrition in IT Services was at 14.5% on a trailing 12-month basis.
The board of the company also recommended bonus issue to its shareholders in the ratio of 1:1, which will be “issued out of created out of profits or share premium free reserves and the securities premium account bonus ratio account or the capital redemption reserve account of the company available as at September 30, 2024”.
The company proposes to issue 1 bonus equity share of ₹2 each for every one fully paid-up equity share held (including American Depositary Share (ADS) holders) to the eligible equity shareholders of the company as on record date.
Ahead of Q2, shares of Wipro ended 0.65% higher at ₹528.80 on the BSE with a market capitalisation of ₹2.76 lakh crore.