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.
How was Wipro's Q2FY23 result?
Wipro's bottomline declined year on year but increased sequentially for Q2FY23. The overall result was below the analyst's expectations.
What were Wipro's margins in Q2 2022?
The operating margin for the quarter was 15.1%, an increase of 16 basis points quarter-on-quarter.
How much dividend did Wipro declare in the Sept Quarter?
The company has not announced any dividends for Q2 2022.