Wipro announces Q2 FY24 financial results with slight decline in revenue

Wipro Limited, an acclaimed tech services and consultancy enterprise, has recently divulged its financial performance for the quarter ending September 30, 2023, as per the International Financial Reporting Standards (IFRS). The company’s gross revenue for this period tallied at ₹225.2 billion ($2.7 billion), marking a minor dip of 0.1% when compared to the previous year.

Highlights of the Financial Outcomes

The latest financial figures provide a comprehensive insight into Wipro‘s performance. The IT services segment’s revenue experienced a downtick by 2.3% on a quarter-over-quarter basis, settling at $2,713.3 million. On the other hand, total bookings displayed an uptick of 6% year-over-year, reaching $3.8 billion. Furthermore, large deal bookings experienced a whopping surge of 79.0% YoY, culminating in $1.3 billion.

Financial Overview: Wipro Limited Records Minimal Revenue Dip in Q2 FY24. Photo courtesy of Rameshng/Wikimedia Commons.

Other noteworthy details include:

• IT services segment EBIT touched ₹36.1 billion ($434.0 million), depicting a 6% growth YoY.
• The operating margin of the IT services segment for this period was 16.1%, marking a 100 bps increase YoY.
• Earnings per share rose by 4.1% YoY to ₹5.06 ($0.061).
• Net income, on the contrary, saw a decline of 0.5% YoY to ₹26.5 billion ($318.5 million).

Executives Share Their Perspective

Thierry Delaporte, CEO and Managing Director of Wipro Limited, expressed, “Despite prevailing macroeconomic uncertainties, our consistent market performance remains undeterred. We closed Q2 with 22 accounts exceeding the $100M threshold. Our large deal total contract value touched a notable $1.3 billion.” Further emphasizing the company’s proactive strategy, Delaporte added, “We’re steering ahead with pivotal decisions to harness our long-term goals, from investing in technology to training our workforce for an AI-centric future.”

Similarly, Aparna C. Iyer, the Chief Financial Officer, voiced, “Our primary objective revolves around profitable growth. By adhering to a disciplined strategy, we’ve seen a YoY rise of 100 bps in our IT services operating margins. The quarter also saw a sturdy operating cash flow equivalent to 145% of the net income.”

Brief on IT Products Performance

Wipro’s IT Products segment reported a revenue of ₹1.47 billion ($17.7 million) for the quarter. However, the results indicated a loss of ₹0.47 billion ($5.6 million) for the same timeframe.