Wipro Q2 Results: Net Profit Misses Estimate, Attrition Dips
Wipro’s revenue increased 5% sequentially to Rs 22,540 crore in the quarter ended September.
Wipro Ltd.’s revenue rose in the second quarter, meeting estimates, aided by deal wins even as supply-side pressures continued to weigh on margin.
The Bengaluru-based IT company’s revenue increased 5% sequentially to Rs 22,540 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 22,615.1-crore consensus estimate of analysts tracked by Bloomberg.
Its revenue from IT services jumped 2.3% over the preceding quarter to $2,797.7 million. It grew 4.1% in constant currency.
Wipro Q2 FY23 Highlights (QoQ)
Net profit rose 4% to Rs 2,659 crore, compared with the Rs 2,844.8-crore forecast.
EBIT rose 2% to Rs 3,144.60 crore.
Margin contracted 38 basis points to 13.95%.
The 12-month trailing attrition rate stood at 23% against 23.3% as of June 2022.
Onboarded 14,000 freshers in first half of the year.
The company expect revenue from IT services business to be in the range of $2,811-2,853 million for the quarter ending December. This translates to a sequential growth of 0.5-2.0%.
"Guidance reflects current environment," Thierry Delaporte, chief executive officer at Wipro, said. "We will grow at double digit this year. Margin will have some headwinds but expect to hold margin in narrow band."
IT Services
Revenue from IT services grew over the previous quarter.
Wipro added seven large deals worth $725 million in the quarter ended September. Large deal bookings constitute of deals greater than or equal to $30 million in total contract value terms.
"As of today, our pipeline is well balanced," Delaporte said.
Segmental Revenue
The energy, natural resources and manufacturing segment grew the most in constant currency in the second quarter. Technology grew at the slowest pace.
Shares of Wipro closed 0.88% higher before the results were announced, compared with a 0.82% gain in the benchmark Nifty 50.