Wipro Ltd on October 17 announced 21 percent rise in net profit at Rs 3,209 crore for the September quarter as against Rs 2,646 crore in the year-ago period. The IT major also announced a bonus share issue in proportion of 1:1.
The company's consolidated revenue fell 1 percent on-year to Rs 22,302 crore in the July-September quarter from Rs 22,543 crore in the year-ago period.
A Moneycontrol poll of brokerages had projected Wipro’s Q2 net profit to marginally increase to Rs 3,011 crore, with revenue expected to grow to Rs 22,219 crore, driven by the ramp-up in new deals.
Ahead of the results announcement, Wipro shares fell 0.65 percent to end at Rs 528.7 on NSE on October 17, while benchmark Nifty 50 fell 0.9 percent for the day.
Wipro reported that its total bookings during the quarter were at $3.56 billion. Large deal bookings were at $1.49 billion, an increase of 28.8 percent on-quarter and 16.8 on-year in constant currency.
Srini Pallia, CEO and Managing Director, said: "Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 Bn once again, and Capco maintained its momentum for another consecutive quarter."
"We grew in three out 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 building a strong AI powered Wipro," Srini Pallia added.
Wipro's IT services operating margin for the quarter was at 16.8 percent, an increase of 0.3 percent quarter-on-quarter and 0.7 percent year-on-year.
Aparna Iyer, Chief Financial Officer, said: "On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8 percent QoQ. Our operating cash flow continues to be robust at 132.3 percent 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."
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