Wipro Q2FY25 results: Net profit rises 21% to Rs 3,201 cr, revenue down 1%

Revenue for the March quarter was marginally down by 1 per cent from the year-ago period to Rs 22,300 crore

Bengaluru-based IT services major Wipro’s net profit increased 21.3 per cent year-on-year (Y-o-Y) to Rs 3,201 crore for the second quarter of FY25. Sequentially, the net profit rose 6.8 per cent.

Revenue for the quarter stood at Rs 22,300 crore, down 1 per cent Y-o-Y but up 1.5 per cent quarter-on-quarter (Q-o-Q). Wipro’s performance exceeded Bloomberg estimates, which had forecasted revenue at Rs 22,234.8 crore and net profit at Rs 3,008 crore.

IT services segment revenue was $2,660 million, a 2 per cent decline Y-o-Y but up 1.3 per cent Q-o-Q. The sequential growth came after a decline for six quarters.

The company’s large deal bookings increased 16.8 per cent Y-o-Y and 28.2 per cent Q-o-Q to reach $1.5 billion. This marked the highest total contract value (TCV) signed in the past 10 quarters.

Wipro has forecasted revenue from IT services business for the third quarter in the range of $2,607 million to $2,660 million, translating to sequential guidance of (-) 2.0 per cent to 0 per cent in constant currency terms.

Srini Pallia, chief executive officer and managing director, said strong execution in Q2 helped the firm meet the expectations for revenue growth, bookings, and margins. “We continued to expand our top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter,” Pallia said, adding that the company grew in three of four markets, as well as in BFSI, consumer, and technology and communications sectors.

“We will continue to invest in our clients, our strategic priorities, and build a strong artificial intelligence-powered Wipro,” Pallia said.

IT services operating margin for the quarter stood at 16.8 per cent, up 0.7 percentage points Y-o-Y.

In verticals, BFSI grew 1.4 per cent Y-o-Y and 3.7 per cent Q-o-Q, while energy, natural resources, and utilities declined 12 per cent Y-o-Y and 6.5 per cent Q-o-Q. Manufacturing was down 8.7 per cent Y-o-Y and 2.7 per cent Q-o-Q. Technology and communications saw a 7.9 per cent Y-o-Y decline but a 2.5 per cent Q-o-Q rise.

Pallia said that discretionary spends was coming back. “In the BFSI segment, to some extent, we are seeing that aspect coming back. But I am not seeing that kind of a change in other sectors at this point in time.”

Chief Financial Officer Aparna Iyer said: “On the back of operational improvements, we further expanded our margins by 35 basis points and our earnings per share (EPS) grew 6.8 per cent Q-o-Q. Our operating cash flow continues to be robust at 132.3 per cent of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1 billion in operating cash flow.”

Voluntary attrition stood at 14.5 per cent on a trailing 12-month basis, while utilisation reached a high of 86.4 per cent.

The company said it was onboarding freshers from Q1 onwards. 

“Every quarter we will add between 2,500 and 3,000 freshers. By the end of this current quarter (Q3), we will make sure there is no backlog of any of the offers. We are really clearly looking at gearing ourselves for future demand. There are specific areas where we have invested, hired people, so that we are ready as and when demand comes,” said Saurabh Govil, chief human resources officer, Wipro.