Published: Pradeep Saran | Oct 18, 2024 | Category- News
Highlights:
- Wipro’s net profit surges 21% to ₹3,209 crore in Q2 FY25.
- Announces 1:1 bonus share issue for shareholders.
- Consolidated revenue drops 1% to ₹22,302 crore.
- Total deal bookings at $3.56 billion, with large deal bookings up 28.8%.
- Operating margin improves to 16.8%.
Wipro’s Q2 Profit Surges by 21%, Announces Bonus Share Issue
Wipro Ltd has reported a significant 21% rise in its net profit for the second quarter of FY25, totaling ₹3,209 crore. This exceeds market expectations, as the company had posted a net profit of ₹2,646 crore in the same period last year. Along with this impressive performance, Wipro announced a 1:1 bonus share issue, which means shareholders will receive one additional share for every share they own.
Revenue Decline by 1%
Despite the increase in profit, Wipro’s consolidated revenue saw a slight decline of 1%, totaling ₹22,302 crore in the July-September 2024 quarter, compared to ₹22,543 crore in the same period last year. This dip in revenue was, however, anticipated by analysts.
Strong Deal Bookings
Wipro’s total bookings for the quarter reached an impressive $3.56 billion, driven by a strong uptick in large deals. The company’s large deal bookings increased by 28.8% quarter-on-quarter to $1.49 billion, demonstrating Wipro’s ability to secure significant contracts. This marks a solid year-on-year growth of 16.8% in constant currency terms.
CEO’s Insights
Srini Pallia, Wipro’s CEO, expressed satisfaction with the company’s performance, stating, “We met our expectations for revenue growth, bookings, and margins, with strong performance in BFSI, Consumer, and Technology sectors. Our large deal bookings exceeded $1 billion once again, and Capco maintained its momentum.”
Margins and Financial Strength
Wipro’s IT services operating margin grew to 16.8% this quarter, a slight increase from the previous quarter. Aparna Iyer, the Chief Financial Officer, highlighted the company’s operational efficiency, saying, “Our operating cash flow was robust, at 132.3% of net income, contributing nearly $1 billion in cash flow in the first half of the year.”
Stock Performance
Ahead of the Q2 results announcement, Wipro’s shares dipped slightly, closing at ₹528.7 on October 17, down 0.65%. However, with the positive financial results and the announcement of the bonus share issue, investor sentiment is expected to improve in the coming days.
Wipro’s Q2 performance showcases its resilience and strategic execution in a competitive IT market, with shareholders set to benefit from the newly announced bonus share issue.
