IT major Wipro on Wednesday, October 18, posted a 0.5 per cent fall in its net profit to Rs 2,646.3 crore for the second quarter ended September 30, compared with Rs 2,659 crore a year ago. Its revenue during July-September 2023 was down marginally to Rs 22,515.9 crore, against Rs 22,539.7 crore in the year-ago period.
On outlook, Wipro expects revenue from our IT services business segment to be in the range of $2,617 million to $2,672 million. This translates to sequential guidance of -3.5% to -1.5% in constant currency terms.
Wipro’s attrition rate continues to moderate on a quarterly basis, coming in at 9-quarter low of 13.4 per cent in the second quarter of 2023-24.
The company’s operating cash flows at 145 per cent of net income for the quarter was at Rs 3,860 crore.
Thierry Delaporte, CEO and managing director of Wipro, said, “We continue to win in the market despite the uncertain macro environment. We ended the second quarter with 22 accounts above the $100 million range, which is double the number we had in FY21. Our large deal total contract value reached $1.3 billion, highest in the last nine quarters.”
Against a challenging environment, Wipro continues to take the bold decisions needed to realise its long-term ambitions. The company is investing in its technology infrastructure and streamlining its operations and delivery to drive profitable growth, the CEO said.
“We are training and reskilling its people so they can be ready for an AI-driven future. The investments we made in our ai360 strategy are helping us realise significant efficiencies across our organization and creating an early leadership position in this fast-evolving space. We are confident that these investments will keep us resilient and competitive in an ever shifting business and economic landscape,” Delaporte said.
Aparna C Iyer, chief financial officer of Wipro, said, “We remain focused on profitable growth despite a challenging market. Our disciplined approach to improve efficiency, productivity and utilisation has led to an increase of 100 bps YoY in our IT services operating margins. Our absolute IT services segment EBIT grew 6 per cent YoY. We generated strong operating cash flow of 145 per cent of net income for the quarter.”
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