Wipro Q2 net profit rises 21.2 pc to Rs 3,209 cr; weak revenue guidance for Q3

New Delhi, Oct 17 (PTI) 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 USD 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 continues to focus on its five strategic priorities and building a strong talent pool to capture AI opportunities, he added.

"We believe all our employees should adopt an AI mindset, have the right skill set, and use the right toolset for their clients.

"We have now trained and certified over 44,000 employees in advanced AI. We have a significant number of employees actively using AI-developer tools across the company," the CEO said.

Wipro, in September 2024, had implemented merit-based salary hikes.

This demonstrates the company's commitment to its employees, Pallia said, adding that it is "encouraging" to see "Team Wipro" come together.

Further, Wipro Chief Human Resources Officer Saurabh Govil said the company will clear all the backlogs of offers made by the end of this calendar year.

"By the end of the current quarter, Q3, we will make sure there is no backlog of any of the offers made. It will all be taken care of," he said.

The company's current employee count stands at 233,889.

"From this fiscal, Q1 onwards, we are onboarding freshers. We have done it in Q1 and Q2, and every quarter, between 2,500-3,000 freshers will be onboarded," Govil further said.

The remarks came amid increasing concerns about IT companies postponing the onboarding of new hires for periods ranging from 6 months to 2 years.

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.

"The bonus equity shares will be issued out of free reserves and/or the securities premium account and/or the capital redemption reserve account of the Company available as of September 30, 2024," the filing said.

The bonus shares are estimated to be credited by December 15, 2024.

Wipro Chief Financial Officer Aparna Iyer said the company is working through a revised capital allocation policy in line with its strategy, and will hopefully share the details post-January board meeting.

The Wipro scrip settled at Rs 528.80 apiece on the BSE on Thursday, 0.65 per cent lower than the previous close. PTI ANK ANK BAL BAL