Wipro Q2 results: PAT drops 7.5% QoQ; revenue slips over 1% to Rs 22,516 crore

Wipro share price: Wipro on Wednesday, October 18, reported a 7.5 per cent quarter-on-quarter (QoQ) drop in its consolidated net profit at Rs 2,667.3 crore for the quarter ended September 30, 2023 (Q2FY24). The company had posted a profit of Rs 2,886 crore in the previous quarter. On a YoY basis; however, the figure grew by 0.68 per cent. 

Revenue from operations also slipped 1.38 per cent to Rs 22,515.9 crore against Rs 22,831 crore logged in the June quarter.

The company's bottom-line figures missed analysts' estimates. For instance, JM Financial had estimated the company to report a net profit of Rs 3,043.2 crore, up 6 per cent QoQ and 14.5 per cent YoY.

The company said its IT services segment revenue stood at $2,713.3 million, a decrease of 2.3 per cent QoQ, and the segment's revenue in constant currency (CC) terms decreased by 2 per cent QoQ. IT services segment EBIT for the quarter was Rs 3,610 crore ($434.0 million), an increase of 6 per cent YoY, the company said in its earnings release. 

IT services operating margin for the quarter was 16.1 per cent, up 10 bps QoQ and 100 bps YoY and its earnings per share (EPS) for the quarter was at Rs 5.06 ($0.061), an increase of 4.1 per cent YoY.

Operating cash flows during the period stood at 145 per cent of net income for the quarter, which was Rs 3,860 crore ($465.0 million). Its voluntary attrition continued to moderate QoQ, coming in at a 9-quarter low of 13.4 per cent in Q2’24.

Outlook for the quarter ending December 31, 2023

"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 per cent to -1.5 per cent in constant currency terms," the company said.

Commenting on the results, Thierry Delaporte, CEO and Managing Director, said, “We continue to win in the market despite the uncertain macro environment. We ended the second quarter with 22 accounts above the $100M 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.”

“Against a challenging environment, we continue to take the bold decisions needed to realise 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 realise significant efficiencies across our organisation 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," the CEO added.

IT Products segment

Wipro's IT Products segment revenue for the quarter came in at Rs 147 crore ($17.7 million) and the segment reported a loss of Rs 47 crore ($5.6 million). 

Source: Earnings release