• Wipro announced a net income of Rs 3,209 crore for Q2 FY25, marking a 21.3% annual growth and a 1:1 bonus share issue.
• The IT services segment saw a 2.0% increase year-on-year, with projected revenue for Q3 FY25 between $2,607 million to $2,660 million.
• CEO Srini Pallia highlighted the company's expansion, large deal bookings, and commitment to AI-powered Wipro.
• Wipro's Q2 FY25 results reflect strong financial performance, strategic growth, and a commitment to shareholders.

Wipro, the IT behemoth, has announced a net income of Rs 3,209 crore for the second quarter of the fiscal year 2025. This marks a 6.8% growth from the previous quarter and a 21.3% annual growth.

The announcement, made on October 17, 2024, also included the declaration of a 1:1 bonus share issue. The company's gross revenue for the same period was Rs 22,300 crore ($2,662.6 million), indicating a 1.5% increase on a quarterly basis. However, it also marked a 1.0% decrease year-on-year.

Wipro's Performance and Future Projections

The IT services segment, a crucial part of Wipro's operations, saw revenue of $2,660.1 million, a 2.0% increase year-on-year. The bonus share issue, recommended by the Board of Directors, is set to benefit shareholders, including stock dividends to ADS holders, in the ratio of 1:1. This means that for every equity share held, an additional equity share will be issued, subject to the approval of shareholders.

Looking ahead, Wipro expects its revenue from the IT services business segment to be in the range of $2,607 million to $2,660 million for the ongoing festive quarter (Q3 FY25). This projection is based on the strong execution in Q2, which met the company's expectations for revenue growth, bookings, and margins.

CEO's Statement and Financial Highlights

CEO and Managing Director Srini Pallia expressed satisfaction with the company's performance, highlighting the continued expansion of top accounts and the surpassing of $1 billion in large deal bookings. He also noted the sustained momentum of Capco, a company acquired by Wipro in 2021. Pallia emphasized the company's commitment to investing in strategic priorities and building a strong AI-powered Wipro.

The earnings per share for the quarter stood at Rs 6.14, marking a 6.8% increase on a quarterly basis. This announcement was made alongside the revelation of the company's robust operating cash flow, which Chief Financial Officer Aparna Iyer stated was at 132.3% of net income in Q2. She added that in the first half of the year, the company generated nearly $1 billion in operating cash flow.

Strategic Partnerships and Future Outlook

Wipro's performance in Q2 FY25 is reflective of its strategic focus on growth and innovation. The company has been successful in securing several significant deals, including a partnership with a US-based health insurance provider to streamline its operations and a collaboration with a global apparel leader to enhance its direct-to-consumer strategy and digital footprint.

The company's operating margin for IT services in the quarter was 16.8%, reflecting a 0.3% increase over the previous quarter and a 0.7% increase compared to the same quarter the previous year. This is indicative of the company's operational efficiency and its ability to manage costs effectively.