Wipro Q2 Results: Consolidated PAT Drops 8% Sequentially To Rs 2,646 Crore, IT Services Revenue Falls

Tech giant, Wipro posted consolidated net profit of Rs 2,646.3 crore in the quarter ending September 30, 2023, period, registering a decline of 7.8% from a profit of Rs 2,870.1 crore in the preceeding quarter. The PAT was flat compared to profit of Rs 2,659 crore in Q2 of FY23.

Key Highlights Of The Q2FY24 Are:

- Gross revenue reached ₹225.2 billion ($2.7 billion1), a decrease of 0.1% YoY.

- IT services segment revenue was at $2,713.3 million, a decrease of 2.3% QoQ.

- Non-GAAP2 constant currency IT Services segment revenue decreased 2.0% QoQ.

- Total bookings3was at $3.8 billion, up by 6% YoY and large deal bookings4was at $1.3 billion, up by 79.0% YoY.

- IT services segment EBIT for the quarter was ₹36.1 billion ($434.0 million1), an increase of 6% YoY.

- IT services operating margin5 for the quarter was at 16.1%, up 10 bps QoQ and 100 bps YoY.

- Earnings per share for the quarter was at ₹5.06 ($0.061), an increase of 4.1% YoY.

-Net income for the quarter was at ₹26.5 billion ($318.5 million1), a decrease of 0.5% YoY.

- Operating cash flows at 145% of Net Income for the quarter was at ₹38.6 billion ($465.0
million1).

- Voluntary attrition6 has continued to moderate QoQ, coming in at 9-quarter low of 13.4% in
Q2'24.

Talking about the financial performance, Thierry Delaporte, CEO and Managing Director said, "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."

He added, "Against a challenging environment, we continue to take the bold decisions needed to realize our long-term ambitions. We are investing in our technology infrastructure and streamlining our operations and delivery to drive profitable growth."

Further, the CEO said, "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 realize significant efficiencies across our organization 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."

Also, Aparna C. Iyer, Chief Financial Officer, said, "We remain focused on profitable growth despite a challenging market. Our disciplined approach to improve efficiency, productivity and utilization has led to an increase of 100 bps YoY in our IT services operating margins. Our absolute IT services segment EBIT grew 6% YoY. We generated strong operating cash flow of 145% of net income for the quarter."

The Azim Premji-backed Wipro trimmed its revenue guidance of its IT Services business segment to be in the range of $2,617 million to $2,672 million in the Q3FY24 compared to earlier prediction of $2,753-2,811 million. This latest sequential guidance translates -3.5% to -1.5% in constant currency terms.