Wipro Q2 results: Profit falls 9% to ₹2,659 crore; revenue jumps 15%

Software services company Wipro on Wednesday reported a consolidated net profit of ₹2,659 crore in the quarter ended September 30, 2022, a 9% year-on-year drop from ₹ 2,930 crore in the same period last fiscal.

The IT firm's consolidated revenue from operations rose 14.6% to ₹22,540 crore in the second quarter of FY23 compared with ₹19,667 crore in the corresponding period last fiscal.

Operating margin of Wipro's IT services segment for the quarter was at 15.1%, an increase of 16 basis points quarter-on-quarter.

"Our strong performance in the quarter is further proof that our strategy is yielding the intended results. The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition," says Thierry Delaporte, chief executive officer and managing director, Wipro.

"Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins," says Delaporte.

Attrition measured in trailing twelve months for the quarter was at 23%, a moderation of 30 basis points from the previous quarter. "We continue to invest in and upskill our talent to stay ahead of our clients' evolving needs. In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition," says the Wipro CEO.

Wipro's IT services revenue was at $2,797.7 million, an increase of 8.4% year-on-year. For the quarter ending December 31, 2022, the company expects revenue from its IT Services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5% to 2.0%.

"We achieved margins of 15.1% in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our operating cash flows was robust and at 181% of our net income for the year," says Jatin Dalal, chief financial officer, Wipro.

The company says its top five clients grew 19% year-on-year and top 10 clients grew 17% Y-o-Y in constant currency terms.