Wipro Q2 Results: Profit Plunges Over 14%, Revenue Shrinks

Wipro Ltd.'s revenue shrunk for the third straight quarter as “slower for longer” demand as well as weakness in consulting business weighed on the top line.

Revenue of India's fourth largest IT services firm fell 1.38% quarter-on-quarter to Rs 22,516 crore in the second quarter, according to an exchange filing on Wednesday. That compares with the Rs 22,919.1-crore consensus estimate of analysts tracked by Bloomberg.

Wipro Q2 Results: Key Highlights (QoQ)

• Revenue down 1.38% at Rs 22,516 crore (Estimate: Rs 22,919.1 crore).

• EBIT down 11.26% at Rs 3,075.7 crore (Estimate: Rs 3,517.3 crore).

• EBIT margin at 13.66% versus 15.17% (Estimate: 15.44%).

• Net profit down 14.41% at Rs 2,267.3 crore (Estimate: Rs 2,905.9 crore).

Revenue from the IT services segment declined 2.3% sequentially to $2.71 billion in the July-September quarter. In constant currency terms, it was down 2%. The company now expects to clock IT services revenue of $2.61-2.67 billion in the December quarter. That equates to a sequential decline of 3.5% to 1.5%.

Earlier, at the end of the April-June quarter, Wipro had pegged its revenue growth at -2.0% to 1%, translating to a revenue of $2.72-2.80 billion. After Q4 FY23, Wipro had pegged its guidance at -3.0% to -1.0% in Q1 FY24.

“Against a challenging environment, we continue to take the bold decisions needed to realise our long-term ambitions,” Thierry Delaporte, chief executive officer of Wipro, said in a press statement. “We are investing in our technology infrastructure and streamlining our operations and delivery to drive profitable growth.”

Deals, however, are still coming in.

In the July-September quarter, the Bengaluru-based IT firm clocked total deal bookings of $3.8 billion—the sixth straight quarter of $3-billion-plus dealmaking. The value of large deal wins stood at $1.3 billion.

“We continue to win in the market despite the uncertain macro environment,” he said. “We ended the second quarter with 22 accounts above the $100-million range, which is double the number we had in FY21. Our large deal total contract value reached $1.3 billion—highest in the last nine quarters.”

On Wednesday, Wipro shares fell 0.94% to Rs 407.40 apiece on the BSE, even as the benchmark Sensex ended the day 0.83% lower at 65,877.02 points. The quarterly results were declared after market hours.