Wipro Q2 PAT drop 9.6% QoQ to Rs 2,931 crore

Wipro reported 9.6% fall in consolidated net profit to Rs 2,930.7 crore in Q2 FY22 from Rs 3,242.6 crore in Q1 FY22.

Revenue from operations increased by 7.8% QoQ to Rs 19,667.4 crore during the quarter.

As compared to Q2 FY21, the IT firm's net profit and revenue from operations in Q2 FY22 have risen by 18.9% and 30.1%, respectively.

Profit before tax in Q2 FY22 stood at Rs 3,756.5 crore, down by 3% from Rs 3,873.3 crore in Q1 FY22. Total tax expense increased by 32.1% QoQ to Rs 825.9 crore during the period under review.

In dollar terms, Wipro's gross revenue was $2.7 billion in the second quarter.

The IT Services segment revenue was at $2,580 million, an increase of 6.9% QoQ and and 29.5% YoY. The Non-GAAP constant currency IT Services segment revenue increased by 8.1% QoQ and 28.8% YoY.

The IT Services operating margin for the quarter was at 17.8%, down 104 bps on a sequential basis.

Thierry Delaporte, CEO and managing director, said, The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year.

Jatin Dalal, 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 a robust growth in EPS of 23.8% YoY.

Wipro expects revenue from its IT Services business to be in the range of $2,631 million to $2,683 million. This translates to a sequential growth of 2% to 4%, the company said.

Wipro's IT Products segment revenue for the quarter was Rs 189.4 crore (up 44.5% QoQ and up 11.5% YoY). The segment recorded profit of Rs 9.4 crore in Q2 FY22. It had recorded a loss of Rs 5.3 crore in Q1 FY22 and a loss of Rs 30.1 crore in Q2 FY21.

The IT firm's India business from State Run Enterprises (ISRE) segment registered revenue decline of 3.6% to Rs 186.7 crore in Q2 FY22 over Q1 FY22. The segment's profit also declined 17.3% QoQ to Rs 39.3 crore during the period under review. While the segment's revenue has declined by 11.6%, net profit has increased by 3.6 times in Q2 FY22 as compared with Q2 FY21.

Wipro is a global information technology, consulting and business process services company.

The scrip rose 2.05% to end at Rs 672.55 on the BSE today.

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