Wipro Q2 results: Net profit surges 21% to ₹3,209 crore; here are five key highlights

IT giant Wipro announced on Thursday reported its quarterly results ending on September 31, 2024. The IT giant posted a 21% surge in its net profit to ₹3,209 crore, compared to ₹2,646 crore in the same period last year.

The IT giant further recommended issue of bonus shares to shareholders (including stock dividend to ADS holders) in the ratio of 1:1 (1 equity share for every 1 equity share held), subject to approval of shareholders.

“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. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro," said Srini Pallia, CEO and Managing Director at Wipro.

Here are five key highlights from Wipro's Q2 FY25 results -

Net profit and revenue

The IT giant posted net profit for the quarter ending September 2024 rose by 21% to ₹3,209 crore, up from ₹2,646 crore in the same period last year. Meanwhile, Revenue from Operations in the reported quarter was ₹22,302 crore, slightly down from ₹22,516 crore recorded in the same quarter of the previous financial year.

Total bookings and margin

Total bookings reached $3,561 million, with large deal bookings totaling $1,489 million. This represents a quarter-over-quarter increase of 28.8% and a year-over-year rise of 16.8% when adjusted for constant currency.

The operating margin for IT services in the quarter was 16.8%, reflecting a 0.3% increase quarter-over-quarter and a 0.7% increase year-over-year.

Other key measures

Non-GAAP2 constant currency revenue for the IT Services segment rose by 0.6% quarter-over-quarter but fell by 2.3% year-over-year.

Earnings per share for the quarter reached ₹6.14 ($0.071), reflecting a quarter-over-quarter increase of 6.8% and a year-over-year increase of 21.3%.

Operating cash flows were reported at ₹4,270 crore ($509.7 million), reflecting a year-on-year increase of 10.5% and representing 132.3% of net income for the quarter.

“I am pleased with our performance across all parameters including Revenue, Bookings, Operating margin, cash flow and EPS. 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,” said Aparna Iyer, Chief Financial Officer at Wipro.

Bonus Share

Wipro board has recommended a bonus share issuance at a 1:1 ratio. The record date for this bonus issue will be announced at a later time.

Outlook for next quarter

“We expect revenue from our IT Services business segment to be in the range of $2,607 million to $2,660 million*. This translates to sequential guidance of (-) 2.0% to 0.0% in constant currency terms,” the company said in its release.