Wipro Q2 net profit falls 9% YoY, but rises sequentially

Information Technology (IT) major Wipro Ltd on Wednesday reported a dip in its consolidated profit after tax (PAT) at â‚¹2,659 crore for the quarter ended September, 2022 (Q2FY23). This is a 9.27% decline from â‚¹2,930.7 crore posted in the same period last year (Q2FY22).

However, on a sequential basis, PAT rose 3.72% from â‚¹2,563.6 crore in the previous June quarter (Q1FY23).

The Bengaluru-based company’s consolidated revenue grew 14.6% to â‚¹22,540 crore as compared to â‚¹19,667 crore in the same period a year ago.

The IT services operating margin for the quarter under review came in at 15.1%, an increase of 16 bps QoQ, the company said in a filing.

“The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition,” Thierry Delaporte, CEO and Managing Director, said.

On promotion and attrition

Over 10,000 colleagues were promoted, according to the Wipro CEO. “We promoted more than 10,000 colleagues and increased salaries across bands,” he said. On attrition, he said, “We are pleased to report that we recorded a third consecutive quarter of moderation in attrition.”

Jatin Dalal, Chief Financial Officer, said, “We achieved margins of 15.1% 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. Our Operating Cash Flows was robust and at 181% of our Net Income for the year.”

Wipro is expected to post a muted show for the September 2022 quarter, analysts estimated ahead of its earnings today.

The company is likely to report revenue of around â‚¹22,500 crore, with a net profit between â‚¹2,500 and 2,700 crore, analyst estimates suggested.

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