IT major Wipro Ltd on Wednesday reported a 9.27 per cent decline in its consolidated net profit to Rs 2,659 crore for the September 2022 quarter (Q2FY23). Its revenue during July-September 2022 grew 14.6 per cent to Rs 22,540 crore, compared with Rs 19,667 crore a year ago.
Wipro’s net profit had stood at Rs 2,930.7 crore in the corresponding period last year.
On a sequential basis, Wipro’s net profit rose 3.72 per cent as against Rs 2,563.6 crore in the previous June 2022 quarter, according to a BSE filing.
Wipro said its IT services operating margin for the September 2022 quarter stood at 15.1 per cent, an increase of 16 basis points (bps) quarter-on-quarter.
In dollar terms, Wipro’s IT services segment’s revenue was at $2,797.7 million, an increase of 8.4 per cent YoY.
On the business outlook, Wipro said it expects revenue from its IT services business to be in the range of $2,811 million-$2,853 million in the current December 2022 quarter. This translates to a sequential growth of 0.5-2 per cent.
Wipro’s employee count in IT services at the end of September 2022 increased to 2,59,179. The company’s voluntary attrition measured in trailing twelve months for the quarter was at 23 per cent, a moderation of 30 bps from the previous quarter, the company said.
Thierry Delaporte, CEO and Managing Director, said, “Our strong performance in the quarter is further proof that our strategy is yielding the intended results. The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition.”
Delaporte added that the company will continue to invest in and upskill its talent to stay ahead of our clients’ evolving needs. “In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition.”
Wipro Chief Financial Officer Jatin Dalal said, “We achieved margins of 15.1 per cent in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our operating cash flows were robust and at 181 per cent of our net income for the year.”
Shares of Wipro on Wednesday rose 0.85 per cent, or Rs 3.45, to close at Rs 408.55 apiece on the BSE.
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