IT services company Wipro posted its September quarter (Q2FY22) results on Wednesday, 13 October 2021.
Wipro’s consolidated revenues (topline) stood at ₹19,667 crore, up 7.8% quarter-on-quarter. The operating margins of the company’s IT Services segment stood at 17.8%, which was 1% lower as compared to the previous quarter operating margin of 18.8%. The company’s consolidated net profit stood at ₹2,930 crore, down 9.3% quarter-on-quarter. In spite of the fall in net profits, Wipro’s Q2 results beat street estimates.
The management believes that the revenue from the IT Services segment can grow around 2-4% in the October-December quarter (Q3FY22).
Company’s revenue growth was led by the BFSI vertical, which grew 11% quarter-on quarter. On the other hand, the Manufacturing vertical, which was down 1% in the previous quarter, saw a sharp recovery in the current quarter, growing 3%.
The company’s attrition rate, the rate at which the employees leave, stood at 20.5%, up from 15.5% in the previous quarter. High attrition is a challenge that Wipro is facing and it doesn’t come as a surprise that it has given two salary hikes in this calendar year.
Wipro’s share prices rose 2% this week ahead of the results. Tech giant & industry leader, Tata Consultancy Services, also posted its quarterly results this week. Wipro’s 7.8% revenue growth looks strong as compared to TCS’s revenue growth of 3.2% and this is most likely to attract investors’ eyeballs.