Wipro Announces Q2 fiscal 2024 Financial Results, Shows Resilience Amidst Market Fluctuations

Wipro, a global leader in technology services and consulting, has released its financial results for the quarter ended September 30, 2023, showcasing resilience in a fluctuating market.
Wipro employeesWipro reported a revenue of ₹225.2 billion ($2.7 billion), representing a marginal decrease of 0.1 percent YoY. Within its IT services segment, revenue stood at $2,713.3 million, showing a decline of 2.3 percent QoQ.

For comparison, Infosys has delivered $4,718 million in Q2 revenues with year-on-year growth of 2.5 percent and sequential growth of 2.3 percent in constant currency.

Tata Consultancy Services (TCS) reported revenue of $7.210 billion, registering 4.8 percent growth YoY and constant currency growth of 2.8 percent YoY.

Wipro demonstrated strong performance in bookings, with total bookings reaching $3.8 billion, a notable 6 percent YoY increase. Large deal bookings, in particular, surged by an impressive 79.0 percent YoY, totaling $1.3 billion.

For the IT services segment, the EBIT for the quarter was ₹36.1 billion ($434.0 million), reflecting a 6 percent YoY increase. The operating margin for this segment during the quarter was reported at 16.1 percent, marking a 10 bps QoQ rise and an impressive 100 bps YoY increase. However, the net income for the quarter experienced a marginal dip of 0.5 percent YoY, amounting to ₹26.5 billion ($318.5 million).

Looking ahead, Wipro provided insights into its future revenue expectations. The company anticipates revenue from its IT Services business segment to fall within the range of $2,617 million to $2,672 million, indicating a sequential guidance of -3.5 percent to -1.5 percent in constant currency terms.

Thierry Delaporte, CEO, and Managing Director of Wipro, highlighted significant milestones achieved during the quarter. He stated, “We ended the second quarter with 22 accounts above the $100M range, which is double the number we had in FY’21. Our large deal total contract value reached $1.3 billion—highest in the last nine quarters.”

Wipro’s consistent focus on innovation, large-scale deals, and strategic financial management have positioned the company well to navigate the evolving market landscape and continue to deliver value to its stakeholders.

Biswajit Maity, Sr Principal Analyst, Gartner, said: “Despite a marginal 0.1 percent decrease in revenue, Wipro has the potential to enhance its financial performance. Customer trust and a promise of business pipelines are good indications. Consumer spending expectations have been tempered by inflation rates surpassing forecasts. In some cases, there is also a noticeable delay in the decision-making process, leading to prolonged deal-signing timelines.”

Biswajit Maity said several factors differentiate Wipro from its competitors. It has established a flexible business framework that enables the creation of tailored environments for each client, tailored to their specific requirements. It uses a standardized model to identify the unique transformation objectives of individual clients.

Wipro is investing in enhancing its cloud capabilities and GenAI, with a strong focus on sustainability, automation, and architectural design. Furthermore, Wipro is dedicated to crafting industry-specific solutions for sectors such as financial services, retail, life sciences, and manufacturing as part of their overarching strategy. Despite improvements in attrition rates, Wipro needs to concentrate more on attrition management, an ongoing industry challenge.

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