Wipro Q2 Results: Net profit grows 6.8% QoQ to ₹3,210 crore; board recommends 1:1 bonus share

On a year-on-year (YoY) basis, the figure grew 21.3%. 

Gross revenue came in at ₹22,300 crore, an increase of 1.5% QoQ and decrease of 1.0% YoY. 

Earnings per share for the quarter were at ₹6.14, an increase of 6.8% QoQ and 21.3% YoY.

In constant currency terms, the IT Services segment revenue increased 0.6% QoQ and decreased 2.3% YoY. Further, Wipro said that its IT Services' operating margin for the quarter came in at 16.8%, an increase of 0.3% QoQ and 0.7% YoY.

The numbers, as per news reports, were better than Street estimates.

Deal Wins

Total bookings were at $3,561 million. It added that its large deal bookings stood at $1.5 billion, which is the highest in 10 quarters. This was an increase of 28.8% QoQ and 16.8% YoY in constant currency terms.

Outlook for the Quarter ending December 31, 2024

"We expect revenue from our 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," the company said in its press release. 

Bonus Share

The company added that its Board of Directors has recommended the issue of bonus shares to shareholders (including stock dividends to ADS holders) in the ratio of 1:1 (1 equity share for every 1 equity share held), subject to the approval of shareholders.

Operating cash flows of ₹4,270 crore ($509.7 million) were an increase of 10.5% YoY and at 132.3% of net income for the quarter.

Voluntary attrition was at 14.5% on a trailing 12-month basis, as per the company's press release.

Shares of the company ended at ₹528.80 apiece on the BSE, down 0.65%.

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.”