Wipro announces Q2 results, IT services segment revenue up 8.4% YoY

Leading technology services and consulting company, Wipro Ltd reported a Net Income of Rs 26.6 billion and Earnings Per Share of Rs 4.86, for the quarter ended September 30, 2022. As per the financial results for Q2 announced on Wednesday, IT Services Segment Revenue was at $2,797.7 million, an increase of 8.4 per cent YoY.

Non-GAAP2 constant currency IT Services segment revenue increased by 4.1 per cent QoQ and 12.9 per cent YoY.

The company’s operating cash flows registered an increase of 101 per cent YoY with 180.6 per cent of Net Income for the quarter at Rs 48 billion.

Thierry Delaporte, CEO and Managing Director, said: “Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins.”

The company’s closing employee count in IT Services increased to 259,179, Wipro stated.

“We continue to invest in and upskill our talent to stay ahead of our clients’ evolving needs. 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,” Delaporte said.

Jatin Dalal, Chief Financial Officer, 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. Our Operating Cash Flows was robust and at 181 per cent of our Net Income for the year.”

Wipro reported that its top 5 clients grew 19 per cent YoY and top 10 clients grew 17 per cent YoY in constant currency terms

On its outlook for the Quarter ending December 31, 2022, Wipro expects revenue from IT Services business to be in the range of $2,811 million to $2,853 million. This translates to a sequential growth of 0.5 per cent to 2 per cent.

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