New Delhi: IT company Wipro on Thursday posted a 21.2 per cent year-on-year rise in its consolidated net profit to Rs 3,208.8 crore for Q2 FY25 on higher operating profit but gave weak revenue guidance for the next quarter. It had reported a profit of Rs 2,646.3 crore in the year-ago period.
The revenue from operations for the reporting quarter was Rs 22,301.6 crore, a 0.95 per cent decline from Rs 22,515.9 crore in Q2 FY24.
Wipro CEO and MD Srini Pallia said the Q2 was driven by strong execution, which enabled the Bengaluru-based firm to meet its 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. We grew in three out of four markets, as well as, in BFSI, consumer, technology and communications sectors,” he said.
However, its revenue for the October-December quarter is expected to be affected by “seasonal furloughs and fewer working days”, Pallia said during the company’s earnings press conference.
“As a result, we are guiding a sequential revenue growth of -2 per cent to 0 per cent in constant currency. Despite softness in revenue in Q3, we are confident of maintaining our margin in a narrow band,” he said.
The company had earlier given revenue guidance from -1 to +1 per cent for Q2 FY25.
“The long-term potential of our business is strong, and we are prepared to handle the current economic uncertainties,” Pallia said.
Wipro’s Board also recommended a bonus share issuance to shareholders, including stock dividends for ADS holders, at a ratio of 1:1, meaning one additional equity share will be granted for each equity share held. This proposal is contingent upon shareholder approval, according to a regulatory
filing.