October 18, 2024
New Delhi, India
Wipro Q2 Results
Wipro Ltd reported a strong performance for the second quarter of FY25, with net profit surging by 21% year-on-year to ₹3,209 crore, surpassing analyst expectations. The IT giant’s revenue for the July-September quarter, however, saw a slight decline of 1%, reaching ₹22,302 crore compared to ₹22,543 crore in the same period last year.
Key Highlights
- Profit Growth: Wipro’s Q2 net profit of ₹3,209 crore exceeded estimates, up from ₹2,646 crore in the previous year. Analysts had predicted a more modest increase to ₹3,011 crore.
- Revenue Decline: Consolidated revenue fell by 1% year-on-year to ₹22,302 crore, as anticipated challenges weighed on growth.
- Bonus Announcement: The company announced a 1:1 bonus share issue, rewarding shareholders with one additional share for every share held.
Deal Momentum
Despite the revenue dip, Wipro’s total bookings for the quarter stood at $3.56 billion. Large deal bookings surged to $1.49 billion, representing a 28.8% increase quarter-on-quarter and 16.8% year-on-year in constant currency terms.
Wipro CEO Srini Pallia expressed satisfaction with the results, noting, “We continued to expand our top accounts, and large deal bookings surpassed $1 billion once again. Our focus on AI and strategic priorities will further strengthen our position.”
Market & Sector Growth
Wipro achieved growth in three out of its four key markets and saw positive traction in sectors such as Banking, Financial Services & Insurance (BFSI), Consumer, Technology, and Communications.
Margin & Cash Flow Strength
The company’s IT services operating margin for Q2 was 16.8%, a 0.7% increase year-on-year. CFO Aparna Iyer highlighted operational efficiencies, stating that Wipro’s operating cash flow was 132.3% of net income in Q2, and nearly $1 billion was generated in operating cash flow during the first half of FY25.
Wipro shares today were trading at 4.9% up at 554.50 a piece on NSE.
Check Q2 results
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