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Wipro Ltd., one of India's largest IT services providers, has published its Q2FY23 results where the company failed to meet the estimated figures.
The company's revenues for the quarter ending in September 2022 came in at Rs 22,539.7 crores, up 14.6% YoY with the IT services segment revenue growing 8.4%. However, profit for the period declined from Rs 2,930.6 crores reported in the corresponding quarter last year to Rs 2,649.1 crores, down 9.6%.
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Higher selling, general and finance costs led to higher expenses, resulting in lower profits. Finance expenses jumped 56% followed by finance and marketing expenses surging 32% and 9.3% respectively.
Attrition measured in trailing twelve months for the quarter was at 23.0%, down 30 bps. Their top 5 clients grew 19% YoY and top 10 clients grew 17% YoY (in constant currency).
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 underscore our improved market competitiveness and enhanced value proposition."
“We achieved margins of 15.1% in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our Operating Cash Flows were robust and at 181% of our Net Income for the year." Jatin Dalal, CFO of Wipro, said.
For the coming quarter, the company has forecasted its revenues to range between $2.81-$2.85 billion, translating to a sequential growth of 0.5-2.0%.
The stock of Wipro tanked as it witnessed a full gap-down opening today. It opened at Rs 387 per share today, down 5.13% from yesterday's close. It currently trades around Rs 383.95, down 5.9%.
Article by Aman Agarwal.
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