- Company achieved remarkable Large Deal Bookings of $1.5 billion, the highest recorded in the past ten quarters, signaling strong demand for its services.
Wipro Limited, a prominent IT major, reported a commendable 21 per cent year-on-year increase in second-quarter net profit, rising from Rs2,646 crore to Rs3,209 crore.
The growth in profitability reflects the company’s strategic execution and operational advancements, as articulated by its leadership. Despite this positive trend in net profit, the company faced a slight decline in consolidated revenue, which fell 1.07 per cent to Rs22,302 crore from Rs22,543 crore in the corresponding period of the previous year.
Wipro’s performance demonstrated resilience, marked by a 6.8 per cent increase in net income on a quarter-over-quarter basis. The company’s revenue from IT Services also showed modest growth of 1.3 per cent quarter on quarter.
Robust cash flow
Notably, operating margins expanded by 35 basis points, indicative of enhanced cost management and operational efficiency. Furthermore, the company achieved remarkable Large Deal Bookings of $1.5 billion, the highest recorded in the past ten quarters, signaling strong demand for its services.
The financial health of Wipro is further underscored by robust operating cash flows, amounting to Rs42.7 billion, which represents an impressive 132.3 per cent of net income for the quarter. This substantial cash generation ability enhances the company’s capacity to reinvest in strategic initiatives and deliver value to shareholders.
Wipro’s board of directors responded to this financial momentum by approving a bonus share issuance in a 1:1 ratio, contingent upon shareholder approval. This decision reflects confidence in the company’s growth trajectory and commitment to rewarding shareholders.
Leadership at Wipro, including CEO Srini Pallia and CFO Aparna Iyer, expressed satisfaction with the company’s performance across various parameters. Pallia noted the growth in key sectors such as Banking, Financial Services, and Insurance (BFSI), Consumer goods, and Technology and Communications.
He emphasised a continued investment in client relationships and strategic priorities, particularly the integration of artificial intelligence within Wipro’s operations.
Aparna Iyer also highlighted the significance of operating cash flow and margin expansion, which further reinforces Wipro’s strong financial position. As the company navigates a competitive landscape, the mixed responses in revenue and profit growth underscore the complexities of the IT services sector, yet reflect a promising outlook bolstered by strategic focus and operational efficiency.