Wipro rose 0.14% to close at Rs 243.70 on BSE ahead of its Q2 September 2019 results.
Wipro's consolidated net profit rose 6.61% to Rs 2561.30 crore on 1.98% rise in total income to Rs 15,875.40 crore in Q2 September 2019 compared with Q1 June 2019.
On a standalone basis, net profit jumped 4.75% to Rs 2223.50 crore on 2.63% rise in total income to Rs 13,156.70 crore in Q2 September 2019 compared with Q1 June 2019. The result was announced after trading hours today, 15 October 2019.
IT services segment revenue was at $2,048.90 million, an adjusted increase of 2.5% year-on-year (YoY). IT services operating margin for the quarter was at 18.1%, an increase of 3.1% YoY. IT services segment primarily consists of IT service offerings to customers organized by industry verticals.
Wipro expects revenue from IT services business to be in the range of $2,065 million to $2,106 million. This translates to a sequential growth of 0.8% to 2.8%.
Abidali Z. Neemuchwala, CEO and managing director said, We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a YoY basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers.
Jatin Dalal, chief financial officer said, We delivered operating margins in a tight range after absorbing the impact of two months of wage hike. Growth remains our priority and we remain invested for future. We also successfully completed the Share Buyback program in September, which saw strong participation from our investors.
In Q2 September 2019, the company concluded the buyback of 32.31 crore equity shares, resulting in a total cash outflow of Rs 10,500 crore.
The effective tax rate for Q2 September 2019 stood at 18.3% as against 21.8% in Q1 June 2019 and 22.1% in Q2 September 2018. The IT major's cash and cash equivalents stood at Rs 18,044.10 crore as on 30 September 2019.
Wipro is a global information technology, consulting and business process services company.
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