Wipro Q2 profit up by 17% to Rs 2,930.6 cr

IT company Wipro posted a 17 per cent jump in consolidated net profit to Rs 2,930.6 crore for the quarter ended on September 30, 2021.       

The company had posted a net profit of Rs 2,484.4 crore in the same period a year ago.

Wipro said that it has surpassed $10 billion (around Rs 75,300 crore) annualised revenue run rate and is in position to hire 25,000 people in the next financial year.

The company is also resuming work back from office in a staggered manner starting with fully vaccinated senior colleagues in India.

Consolidated revenue of Wipro increased by about 30 per cent to Rs 19,667.4 crore during the quarter compared to Rs 15,114.5 crore it registered in the corresponding quarter of 2020-21.

"The Q2 results demonstrate that our business strategy is working well.

“We grew at over 4.5 per cent organic sequential growth for a second quarter in a row, resulting in a 28 per cent YoY growth in the first half of this financial year.

“I thank our customers, partners and colleagues as we surpassed the $10 billion milestone of annualised revenue run rate," Wipro CEO and MD Thierry Delaporte said.

The IT services segment revenue increased by 29.5 per cent on a year-on-year basis to Rs 19,378.38 crore ($2,580 million).

Delaporte said the demand environment is healthy and Wipro's revenue is expected to grow 2-4 per cent in the next quarter which will translate into 27-30 per cent growth in the constant current terms on YoY basis.

According to Wipro's outlook, revenue from IT services are expected to be in the range of Rs 19,500 crore to Rs 19,889 crore in the October-December quarter.

"Our order book in terms of annual contract value has jumped 28 per cent in the first half. In terms of total contract value, the order book is up 19 per cent year-on-year," Delaporte said.

Wipro IT services business in constant currency terms in Americas1 (classified based on industry segments) grew by 19.8 per cent, Americas 2 by 30.6 per cent, Europe by 48.3 per cent and APMEA comprising Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa grew by about 7.7 per cent.

Banking, financial services and insurance sector continued to be the biggest contributor in Wipro revenue at 34.8 per cent followed by consumer vertical at 17.3 per cent, energy vertical 12.3 per cent, technology 12.2 per cent, health 11.7 per cent, manufacturing 6.7 per cent and communications 5 per cent.

Wipro recorded a total pipeline of $27 billion (over Rs 2 lakh crore) which includes $8 billion (around Rs 60,000 crore) in the cloud computing segment.

During the quarter, the company recruited 8,100 freshers from the campuses.

"We have doubled down on our fresher intake with 8,100 young colleagues joining us from campuses in the second quarter.

“We will continue to aggressively build on this. We are well positioned to hire 25,000 freshers in the next financial year," Delaporte said.

Photograph: Punit Paranjpe/Reuters