Wipro Q2 consolidated net up 17%, guidance in line with St estimates

IT company Wipro posted a 17% 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 USD 10 billion (around Rs 75,300 crore) annualised revenue run rate.

The consolidated revenue of Wipro increased by about 30% 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% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year. I thank our customers, partners and colleagues as we surpassed the USD 10 billion milestone of annualised revenue run rate," Wipro CEO and MD Thierry Delaporte said in a statement.

The IT services segment revenue increased by 29.5% on a year-onyear basis to Rs 19,378.38 crore (USD 2580 million).

Wipro Ltd has guided for its sales growing 2-4% sequentially to $2.63 bln-$2.68 bln in the December quarter. The guidance is in line with the Street's expectations. While the December quarter is generally subdued for technology service providers in India because of furloughs and slower decisionmaking in their key markets, a strong pipeline and previously won deals have helped Wipro give this guidance.

"...pipeline is the highest in recent quarters, and has a good mix of large and mid-sized deals," Delaporte said at a virtual press conference after the earnings. The deal pipeline is around $27 bln, of which opportunities worth $8 bln are from cloud alone, Delaporte said. The firm crossed the $10-bln annualised revenue run rate, after clocking in sales of $2.58 bln in the September quarter.