Wipro Ltd Q2 Results FY2023, Revenue up by 14.6%

On 13th October 2022 India’s one of the leading IT companies, Wipro announced its quarterly results for the second quarter of FY2023.

Key Highlights:

Q2FY23 Performance updates:

- The company reported a gross Revenue was Rs.225.4 billion ($2.8 billion), with a growth of 14.6% YoY 
- IT Services Segment Revenue was at $2,797.7 million, with a growth of 8.4% YoY 
- Non-GAAP constant currency IT Services segment revenue increased by 4.1% QoQ and 12.9% YoY 
- IT Services Operating Margin for the quarter was at 15.1%, with a growth of 16 basis points QoQ 
- The Profit before tax was reported at Rs. 34.2 billion, with a drop of 8.95% YoY
- The Net profit was reported at Rs. 26.49 billion, with a drop of 9.6% YoY.
- Operating Cash Flows were reported at 180.6% of Net Income for the quarter was at Rs.48.0 billion ($590.0 million), with a growth of 101.0% YoY 
- The employee count in IT Services was increased to 259,179. Voluntary attrition measured in the trailing twelve months for the quarter was at 23.0%, a moderation of 30 bps from the previous quarter 

Business Highlights:

- IT Products segment revenue for the quarter was reported at Rs.1.2 billion ($15.3 million). IT Products segment results for the quarter reported a loss of Rs.0.10 billion ($1.27 million).
- India SRE segment revenue for the quarter was reported at Rs.1.6 billion ($19.4 million). India SRE segment results for the quarter were a profit of Rs.0.15 billion ($1.79 million).  

Deals won:

IT Service-Large deals:

- A US-based technology company has selected Wipro as their preferred transformation partner for engineering services to modernize their advertising-technology suite of products as well as the underlying enterprise-wide infrastructure.
- A global chemicals company has selected Wipro to deliver Service Desk, Field Services and Service Integration & Management for its employees across 63 countries.
- A large, US-based healthcare plan has selected Wipro as its strategic partner to help expand its self-funded small group business. 
- A global technology company has selected Wipro for the consolidation and transformation of its quality engineering services for its flagship products.
- Wipro has signed a multi-year deal with a large Europe-based facilities management and professional services company.

IT Services- Digital services deal:

- A US-based automotive component manufacturer has selected Wipro for the comprehensive development of next-generation in-vehicle infotainment applications, cloud enablement, device testing, and validation.
- Wipro has been awarded a contract by a US-based water utility company to modernize their customer care and billing platform.
- A global pharmaceutical and medical devices company has selected Wipro to automate its complaint management process leveraging Wipro Digital Operations Platform and Services.

Commenting on the result, Thierry Delaporte, CEO and Managing Director, said, “Our strong performance in the quarter is further proof that our strategy is yielding the intended results. The solid growth in our bookings, large deal signings, and revenues underscores our improved market competitiveness and enhanced value proposition. Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins. We continue to invest in and upskill our talent to stay ahead of our clients’ evolving needs. In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition. As the market conditions evolve, I believe our comprehensive portfolio of differentiated offerings positions us extremely well to serve the changing needs of our clients and help them face the challenges of an uncertain macro environment with confidence.” 
 

On Thursday, 13th October the Wipro share price fell by 6.95%.