Wipro gained 4.05% to Rs 550.20 after the IT major recorded decent earnings for the second quarter of FY25 and announced a 1:1 bonus issue.
The board of directors recommended bonus equity shares in the proportion of 1 bonus equity share for every 1 equity share held (1 :1) and a bonus issue [stock dividend on American Depositary Share (ADS)] of 1 ADS for every 1 ADS held, as on the record date, subject to approval of the members of the company.Further, the company reported Q2 & H1 FY25 earnings. The IT giants consolidated net profit grew 6.85% to Rs 3,208.8 crore on 1.54% rise in revenue from operations to Rs 22,301.6 crore in Q2 FY25 over Q1 FY25.
On year on year (YoY) basis, the IT firms net profit grew 21.26% while revenue fell 0.95% in Q2 FY25.
Profit before tax was at Rs 4,277.8 crore during the quarter, up 6.37% quarter on quarter (QoQ) and up 21.9% YoY.
In dollar terms, Wipro's gross revenue stood at $2,662.6 million in Q2 FY25, up 1.5% QoQ while down 1% YoY. IT services segment revenue was at $2,660.1 million, up 1.3% QoQ while down 2% YoY.
IT services operating margin for the quarter was at 16.8%, registering a growth of 0.3% QoQ and 0.7% YoY. Non-GAAP constant currency IT services segment revenue grew 0.6% QoQ but down 2.3% YoY.
For the quarter ending 31 December 2024, Wipro expects revenue from its IT Services business segment to be in the range of $2,607 million to $2,660 million. This translates to sequential guidance of -2% to 0% in constant currency terms.
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During the quarter, the IT company's total booking was at $3,561 million. Large deal bookings stood at $1,489 million, registering a growth of 28.8% QoQ and 16.8% YoY in constant currency.
The company said that its closing employee count in IT Services stood at 233,889. Voluntary attrition was at 14.5% on a trailing 12-month basis.
Srini Pallia, CEO and managing director, said Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 Bn once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, Consumer and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro.
Aparna Iyer, chief financial officer, said I am pleased with our performance across all parameters including revenue, bookings, operating margin, cash flow and EPS. On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ. Our operating cash flow continues to be robust at 132.3% of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1B in operating cash flow.
Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.
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