Wipro to merge five subsidiaries with itself

Wipro Ltd, which on Wednesday announced that it closed the second quarter of FY24 with a lower revenue and after tax profit as compared to the previous year's corresponding period, also said it will merge five of its wholly-owned subsidiaries with itself

In a regulatory filing the company said its consolidated revenue from operations for the period ended September 30, 2023 stood at Rs.22,515.9 crore (Q2FY23 Rs.22,539.7 crore) and a net profit of Rs.2,646.3 crore (Rs.2,659 crore).

"We continue to win in the market despite the uncertain macro environment," CEO and Managing Director Thierry Delaporte said. He said that they ended the second quarter with 22 accounts above the $100M range, or double the number in FY21 and large deal total contract value reached $1.3 billion—highest in the last nine quarters.

The company said its voluntary attrition has continued to moderate QoQ, coming in at 9-quarter low of 13.4 per cent in Q2'24.

The Board at its meeting also approved the merger of the following subsidiaries - Wipro HR Services India Private Ltd, Wipro Overseas IT Services Private Ltd, Wipro Technology Product Services Private Ltd (formerly known as Encore Theme Technologies Private Ltd), Wipro Trademarks Holding Ltd, and Wipro VLSI Design Services India Private Ltd – with Wipro.

According to the company the merger is proposed to consolidate business operations, enable synergies of operations, reduction in overheads including administrative, managerial and other expenditure, optimise legal entity structure and to reduce multiplicity of legal and regulatory compliances.