Wipro Q2 results: IT major's profit up 35.1 pct YoY to Rs 25.5 bn; check top highlights

IT major Wipro Limited today announced financial results for its quarter ended September 30, 2019, posting a net income of Rs 25.5 billion ($361.4 million), an increase of 35.1% YoY, according to its stock filing with the BSE. The company's IT Services Segment Revenue was at $2,048.9 million, an adjusted increase of 2.5% YoY, while Gross Revenue was Rs 151.3 billion, an increase of 4.0% YoY.

Commenting on the company's performance for the quarter, Abidali Z. Neemuchwala, CEO and Managing Director said, “We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a YoY basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers.”

Jatin Dalal, Chief Financial Officer said, “We delivered operating margins in a tight range after absorbing the impact of two months of wage hike. Growth remains our priority and we remain invested for future. We also successfully completed the Share Buyback program in September, which saw strong participation from our investors.”

Highlights of the Results

1. Gross Revenue was Rs 151.3 billion, an increase of 4.0% YoY
2. IT Services Segment Revenue was at $2,048.9 million, an adjusted increase of 2.5% YoY
3. Non-GAAP constant currency IT Services Segment Revenue increased by 1.1% QoQ. Adjusted Non-GAAP3 constant currency IT Services Segment Revenue grew 3.8% YoY
4. IT Services Operating Margin for the quarter was at 18.1%, an increase of 3.1% YoY
5. Net Income for the quarter was Rs 25.5 billion ($361.4 million), an increase of 35.1% YoY
6. EPS for the quarter was Rs 4.3 ($0.061) per share and grew 36.7% YoY

Wipro's outlook for the Quarter ending December 31, 2019, according to the company's statement.

"We expect Revenue from our IT Services business to be in the range of $2,065 million to $2,106 million. This translates to a sequential growth of 0.8% to 2.8%."

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Share Buyback 

In the quarter ended September 30, 2019, the company has concluded the buyback of 323.1 million equity shares as approved earlier by the Board of Directors at their meeting held on April 16, 2019. This has resulted in a total cash outflow of Rs 105 billion ($1.49 billion).