Wipro Q2 profit jumps 36% to Rs 2,561 crore, IT services revenue up 2.5%

IT major Wipro on Tuesday reported 35.82 per cent year-on-year (Y-o-Y) growth in consolidated net profit at Rs 2,561.20 crore for the second quarter ended September 30, 2019. The profit was up 7.27 per cent compared to Rs 2,387.60 crore in the June quarter.

"The Bengaluru-based technology firm had posted consolidated net profit of Rs 1,885.60 crore in the same quarter last year," Wipro said in a filing to the Bombay Stock Exchange.

Consolidated revenue of the IT major increased by 4 per cent to Rs 15,125.60 crore in Q2FY20 as compared to Rs 14,541 crore in Q2FY19.

Revenue from IT services segment in dollar terms grew by 2.5 per cent Y-o-Y to $2,038.8 million. In constant currency terms, revenue was up 1.1 per cent sequentially.

Operating margin for the IT services segment climbed 18.1 per cent in July-September quarter, an increase of 3.1 per cent Y-o-Y.

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Speaking on the share buyback, Wipro said said it has concluded the share buyback of 32.31 crore equity shares, which has resulted in an cash outflow of Rs 10,500 crore.

Commenting on Q1 earnings, Abidali Z. Neemuchwala, Wipro CEO and Executive Director said, "We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a Y-o-Y basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers."

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Jatin Dalal, the Chief Financial Officer said, "We delivered operating margins in a tight range after absorbing the impact of two months of the wage hike. Growth remains our priority and we remain invested for the future. We also successfully completed the Share Buyback program in September, which saw strong participation from our investors."

Looking forward, the company expects revenue from IT services business to be in the range of $2,065 million to $2,106 million in December quarter, a sequential growth of 0.8-2.8 per cent.

Ahead of Q2 earnings, shares of Wipro closed 0.14 per cent higher at Rs 243.70 apiece on the Bombay Stock Exchange on Tuesday.

Edited by Chitranjan Kumar