Wipro's Q2 Earnings: Profit Dips but Resilience Shines Through

However, the company's profit rose 1.2 per cent year-on-year (YoY) for the July-September quarter, compared to Rs 3,209 crore in the same period last financial year (Q2 FY25), as per its stock exchange filing.

The company's revenue from operations rose 1.8 per cent YoY to Rs 22,697 crore, up from Rs 22,302 crore in the corresponding period last fiscal.

On a quarterly basis, revenue grew 2.5 per cent from Rs 22,135 crore recorded in the April-June quarter, the exchange filing showed.

Wipro's expenses increased by over 2 per cent YoY to Rs 19,378 crore during the quarter.

The company's IT services revenue stood at Rs 22,640 crore, registering a growth of over 2 per cent compared to previous financial year.

The IT segment alone reported revenue of Rs 22,753 crore, slightly higher than Rs 22,262 crore a year ago.

The IT services operating margin for the quarter came in at 16.7 per cent, which was impacted by a one-time provision of Rs 116.5 crore due to the bankruptcy of a customer.

Adjusted for this, the margin stood at 17.2 per cent, showing a 0.1 per cent decline QoQ but a 0.4 per cent improvement YoY.

For the next quarter, Wipro expects revenue from its IT services business to be in the range of $2,591 million to $2,644 million, translating to a sequential growth guidance of -0.5 per cent to +1.5 per cent in constant currency terms.

The outlook does not include any contribution from its recent acquisition of Harman Digital Transformation Solutions.

Wipro's voluntary attrition rate stood at 14.9 per cent on a trailing 12-month basis.

The company's operating cash flow for the quarter was Rs 3,390 crore, a decline of 17.6 per cent QoQ and 20.7 per cent YoY, but remained at 103.8 per cent of net income.

Earnings per share for the quarter stood at Rs 3.1, showing a 2.5 per cent drop from the previous quarter and a 1 per cent increase compared to last financial year.

- IANS