Wipro Q2 results: Net profit drops 9% to Rs 2,659 crore

Wipro on Wednesday reported a 9.27 per cent year-on-year (YoY) drop in net profit at Rs 2,659 crore in September quarter compared with Rs 2,930.70 crore in the corresponding quarter last year.

Revenues for the quarter rose 14.60 per cent YoY to Rs 22,539.70 crore from Rs 19,667.40 crore in the same quarter last year, the IT firm said in an exchange filing. Dollar revenues for the IT Services stood at $2,797.70 million, up 2.3 per cent sequentially. Revenue growth in constant currency (CC) terms stood at 4.1 per cent sequentially. 

Also Read: HCL Tech Q2 results: Net profit rises 7% to Rs 3,489 crore
Operating margin for the IT services business stood at 15.1 per cent, up 16 basis points sequentially. Margin stood at 17.8 per cent in the year-ago quarter. 

The IT major has guided for $2,811 million-$2,853 million in IT services business revenues. This translates to a sequential growth of 0.5 percent to 2 per cent.

Chief Financial Officer, Jatin Dalal, said, “We achieved margins of 15.1 per cent in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity."

Wipro said all markets grew in double digits YoY, in constant currency terms, with Americas leading the growth at 15.3 per cent YoY.

Top 5 clients grew 19 per cent YoY CC and top 10 clients grew 17 per cent YoY CC.

Voluntary attrition, measured in trailing twelve months, for the quarter stood at 23 per cent, down 30 basis points from the previous quarter. Employee count in IT Services stood at 2,59,179 as of September 30, HCL Tech said.

CEO and Managing Director Thierry Delaporte said: "In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition.”

Earlier today, the stock closed the day at Rs 407.75 on BSE, up 0.85 per cent.