Wipro Q2 Results: Mixed Quarterly Results; Net profit drops 9% on-year

Wipro's share price is down more than 40% in 2022. The fall has been more steep compared to its peers. In the last 5 years, Wipro has delivered 86% returns to its investors. Let us look at its Q2FY23 results in detail.

Wipro July-September 2022: Highlights

Wipro Q2 Results 2022

Wipro Q2 earnings: The consolidated profit after tax (PAT) went down by 9.27% year on year for the quarter ending September. The PAT reported by the company is Rs 2,659 crore. However, sequentially, the profit increased by 3.72%. Analysts estimated the consolidated profit after tax (PAT) at Rs 2,815 crore. Hence, the PAT is below analysts' expectations. 

Wipro Q2 2022 Revenue: The company reported revenue in dollar terms, and it stood at $2.8 billion. IT Services segment revenue was at $2,798.7 million, a growth of 8.4% year on year. It delivered revenue growth of 14.6% on-year. Analysts expected it to increase by 15.4% on-year. 

Wipro earned 35.2% of its revenue from banking, financial services, and insurance, followed by 18.8% in consumer and 11.4% in health.

Wipro Q2 Margins: IT services' operating margin for the quarter was 15.1%, an increase of 16 basis points quarter-on-quarter. The margin improvement was led by better price realisations and strong operational improvements in automation-led productivity.

Outlook for Q3FY23: Wipro expects revenue from our IT Services business to be in the range of $2,811 million to $2,853 million. It translates to a sequential growth of 0.5% to 2.0%. Attrition and headcount: Company's attrition rate for Q2FY23 stood at 23%, marginally lower than 23.3% in the previous quarter and significantly higher than 20.5% in the same quarter last year. During the quarter, the net headcount addition was 259,179 including more than 10,000 freshers and gross utilisation of 72.3%.

Check TCS's Q2FY23 results in detail and compare - Click here

Wipro's other Q2 updates: Top 5 clients grew 19% YoY CC and the Top 10 clients grew 17% YoY in constant currency (CC). Large deal bookings grew by 42% YoY in H1’23. Overall, order book in TCV terms grew 24% YoY in Q2'23. Operating cash flow to Net income was at 180.6%, and Free Cash flow to Net Income was at 166.0% for Q2'23.

Wipro Q2 results 2022 Management commentary: "The solid growth in our bookings, large deal signings, and revenues underscores our improved market competitiveness and enhanced value proposition," Thierry Delaporte, CEO, and Managing Director.