Wipro Q2 profit climbs 36% YoY to Rs 2,561 crore, beats Street estimates

NEW DELHI: IT major Wipro on Tuesday reported a 35.82 per cent YoY rise in consolidated net profit at Rs 2,561.30 crore for the September quarter compared with Rs 1,885.70 crore in the corresponding quarter last year. On a sequential basis, the profit was up 6.2 per cent.

Analysts in an ET Now poll had projected the profit figure at Rs 2,303 crore.

The company has guided for IT services revenue of $2,065 million to $2,106 million for the December quarter. This translates to a sequential growth of 0.8 per cent to 2.8 per cent.

Gross revenue for the quarter rose 4 per cent YoY to Rs 15,130 crore. IT services segment revenue came in at $2,048.9 million, up 2.5 per cent YoY. In constant currency terms, revenue was up 1.1 per cent sequentially.

Adjusted non-GAAP revenue growth stood at 3.8 per cent YoY in CC terms, the company said.

Earnings Report Card

PAT	Rs 2,561.30 crore	Up 35.82% YoY
Revenue	Rs 15,130 crore	Up 4% YoY
Profit Margin	18.1%	Up 3.1 % YoY
Revenue Guidance for Q3	$2,065 mn to $2,106 mn	0.8% to 2.8%

The IT firm said it has concluded the share buyback of 323.1 million equity shares, which has resulted in an cash outflow of Rs 10,500 crore.

Operating margin for the IT services segment rose 18.1 per cent, an increase of 3.1 per cent YoY.

The effective tax rate for the quarter was 18.3 per cent compared with 21.8 per cent June quarter and and 22.1 per cent in the year-ago quarter.

Abidali Z. Neemuchwala, CEO and Managing Director said, “We had a good in-quarter execution on both revenues and margins. The overall growth was broad based with 6 out of 7 industry verticals growing on a YoY basis and we signed a large deal in India aligned to our strategy of taking global offerings to India customers.”