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Wipro Q2 results: Profit rises 17% to Rs 2,930 crore

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Wipro on Wednesday reported a 17 percent jump in consolidated net profit to Rs 2,930 crore for the second quarter ended September 2021.

Wipro Q2 results: Profit rises 17% to Rs 2,930 crore
IT major Wipro on Wednesday reported a 17 percent jump in consolidated net profit to Rs 2,930 crore for the second quarter ended September 2021. In the corresponding quarter last year, the Bengaluru-headquartered company posted a net profit of Rs 2,465.70 crore.
Its consolidated revenue increased by about 30 percent to Rs 19,667 crore in the reported quarter from Rs 15,114 crore in the same period last fiscal, Wipro said in a regulatory filing. Also, Wipro surpassed the $10 billion (around Rs 75,300 crore) annualised revenue run rate.
It expects revenue from the IT services business to be in the range of $2,631 million to $2,683 million for the third quarter. This translates to a sequential growth of 2 percent to 4 percent.
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Wipro's IT services segment revenue was at $2,580.0 million, an increase of 6.9 percent QoQ and 29.5 percent YoY. Non-GAAP2 constant currency IT services segment revenue increased by 8.1 percent QoQ and 28.8 percent YoY.
IT services operating margin for the quarter was at 17.8 percent, flat on adjusted basis QoQ and reported a decrease of 104 bps QoQ. The net income for the quarter was Rs 29.3 billion ($395.2 million1), an increase of 18.9 percent YoY. Earnings per share for the quarter was at Rs 5.36 ($0.071), an increase of 23.8 percent YoY.
Thierry Delaporte, CEO and managing director said, "The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5 percent organic sequential growth for a second quarter in a row, resulting in a 28 percent YoY growth in the first half of this financial year. I thank our customers, partners, and colleagues as we surpassed the $10 billion milestone of annualized revenue run rate."
Jatin Dalal, the chief financial officer said, "We sustained our operating margins in Q2 in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent. We completed a salary increase covering 80% of our colleagues, making it the second hike in this calendar year. We delivered robust growth in EPS of 23.8 percent YoY."
The company said it added two clients in the $100 million+ band, taking the total to 15, and made one client addition in the $75 million+ category, increasing the total client list to 28 as of September 2021. In the $50 million+ category, it added two clients, five clients in the $20 million+ band, and six in the $10 million+ category, compared to the previous quarter.
The banking, financial services and insurance segment, which contributed 34.8 percent to the total IT services business, grew by 11.1 percent sequentially. The consumer segment, which accounted for 17.3 percent of revenue, registered 6.5 percent growth QoQ in the September quarter.
Health, ENU (energy, natural resources and utilities), technology, manufacturing, and communications segments reported 5.1 percent, 0.6 percent, 6.5 percent, 3.1 percent, and 6.1 percent respectively in the September quarter on a sequential basis.
Also, it completed the acquisition of London-headquartered The Capital Markets Company Capco, a consultancy firm in the banking and financial services space, on April 29, for $1.45 billion. It was the largest ever buyout by the company so far.
The results came after the close of the market hours. Shares of Wipro ended at Rs 672.55, up by Rs 13.50, or 2.05 percent on the BSE.
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