Wipro's Q2 net profit sees marginal rise to ₹3,246cr
What's the story
Wipro, India's fourth-largest IT services company, has reported a marginal rise in its consolidated profit after tax for the September quarter. The company's PAT stood at ₹3,246 crore, up 1.15% from ₹3,209 crore in the same period last year. The firm also posted a revenue of ₹22,697 crore for the quarter under review, slightly beating analysts' estimate of ₹22,577 crore and marking a 1.8% year-on-year growth from ₹22,302 crore in Q2 FY25.
Revenue boost
Revenue growth driven by European business stability
The company's revenue growth was largely driven by the stability of its European business and the ramp-up of a few large deals. "Our revenue momentum is strengthening, with Europe and APMEA returning to growth, and our operating margins holding steady within the narrow band," said Srini Pallia, CEO and Managing Director at Wipro.
Segment performance
The company's margin was impacted
The IT services segment of Wipro clocked a revenue of $2,604.3 million, a 0.7% sequential rise and 2.1% year-on-year decline. The company's margin was impacted by a ₹116.5 crore provision related to a customer's bankruptcy. However, adjusted for this event, the margin for the quarter stood at 17.2%, reflecting a 0.1% sequential contraction and a 0.4% YoY expansion respectively from Q1 FY24 and Q2 FY23 levels of 17.3% and 16.8%.
Financials
Net profit up marginally, total bookings down sequentially
Wipro's net profit for the quarter stood at ₹3,246.2 crore, a marginal improvement of 1.1% compared to ₹3,227 crore in the same period last year. The firm's total bookings stood at $4,688 million in Q2, down 6.1% sequentially but up 31% YoY in constant currency terms (CC). Large deal bookings reached $2,853 million, reflecting a 6.7% sequential increase and a 90.5% YoY jump in CC.