Wipro Q2 Results: Banger Quarter, Consolidated PAT Climbs 21.3% YoY To Rs 3,209 Crore, Beats Estimates

Wipro Ltd, the Azim Premji-backed tech player, has reported a strong quarter for the period ending September 2024. In Q2FY25, Wipro beats estimates by earning consolidated net profit of Rs 3,209 crore (attributable to owners), registering a growth of a whopping 21.25% year-on-year and 6.85% quarter-on-quarter.

Wipro's net profit was at Rs 3,003.2 crore in Q1FY25 and Rs 2,646.3 crore in Q2FY24.

Meanwhile, consolidated revenue came in at Rs 22,301.6 crore in Q2FY25, however, declining by 0.95% from PAT of Rs 22,515.9 crore in Q2FY24. But revenue was up by 1.54% from revenue of Rs 21,963.8 crore in Q1FY25.

In dollar terms, the company's IT services segment revenue was at $2,660.1 million, an increase of 1.3% QoQ and a decrease of 2.0% YoY. While non-GAAP constant currency IT Services segment revenue increased 0.6% QoQ and decreased 2.3% YoY.

On segment-wise, Banking, Financial Services and Insurance (BFSI) revenue growth stood at 34.8% in the quarter, which is gradually up from 34% growth in Q1FY25. While consumer growth stood at 19.2%, flat sequentially. Moreover, Technology and Communications growth inched up to 15.4% in Q2FY25, versus 15.3% in Q1FY25.

However, health sector revenue slowed to 13.6%, Energy, Natural Resources and Utilities growth slowed to 10.8% and Manufacturing growth squeezed to 6.2% in the quarter.

Further, in terms of operating margin, the company's IT services margin expanded by 0.3% QoQ and 0.7% YoY to 16.8%. Operating cash flows of Rs 42.7 billion ($509.7 million), an increase of 10.5% YoY and at 132.3% of Net Income for the quarter.

Srini Pallia, CEO and Managing Director, said "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."

The CEO added, "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"

Meanwhile, Aparna Iyer, Chief Financial Officer, said "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."

The company's total bookings were at t $3,561 million in the quarter under review. Among these, large deal bookings were at $1,489 million, an increase of 28.8% QoQ and 16.8% YoY in constant currency.

For the quarter ending December 31, 2024 period (Q3FY25), Wipro expects its revenue growth in the 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.

Wipro share price ended at Rs 528.80 apiece, down by 0.65% on BSE, with a market cap of Rs 2,76,639.31 crore on Thursday.

Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.