Skip to main content

Wipro's Q2 profit rises sequentially; 5 highlights from company's Q2 earnings

The company's quarterly numbers came on expected lines and it recorded quarter-on-quarter (QoQ) improvement on most parameters. Along with the numbers, the company also announced a share buyback of Rs 9,500 crore.

IT player Wipro, on October 13, reported a consolidated profit of Rs 2,465.7 crore for the July-September quarter.

The company's quarterly numbers came on expected lines and it recorded quarter-on-quarter (QoQ) improvement on most parameters. Along with the numbers, the company also announced the share buyback of Rs 9,500 crore.



Here are 5 key takeaways from Wipro's Q2 earnings:

The numbers: Consolidated profit increased to Rs 2,465.7 crore for the quarter compared to Rs 2,390.4 crore in the previous quarter.

Consolidated revenue during the quarter increased 1.2 percent sequentially to Rs 15,096.7 crore.

The IT services segment, which is widely tracked by analysts, witnessed a 3.7 percent quarter-on-quarter growth in revenue at $1,992.4 million in Q2. Non-GAAP constant currency IT Services segment revenue increased by 2 percent QoQ, said Wipro in its BSE filing.

Buyback: The board of directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase of up to 23.75 crore equity shares of Rs 2 each (representing 4.16 percent of the total paid-up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer.

The buyback price is Rs 400 ($5.41) per equity share payable in cash for an aggregate amount not exceeding Rs 9,500 crore ($1.3 billion).

Outlook for Q3: The company expects revenue from its IT services business to be in the range of $2,022 million to $2,062 million. This translates to a sequential growth of 1.5 percent to 3.5 percent.

Acquisition of Eximius Design: The company said that it has signed a definitive agreement to acquire Eximius Design, a leading engineering services company with strong expertise in semiconductor, software and systems design.

"Eximius enables Wipro to strengthen market leadership in VLSI and systems design services by expanding our market presence and strengthening our technical leadership in the semiconductor ecosystem, to help accelerate silicon innovation for our customers. We are pleased to welcome Eximius' employees and look forward to helping our customers innovate at scale and deliver next-generation connected products, faster," said Harmeet Chauhan, Senior Vice President, Industrial & Engineering Services, Wipro.

Management commentary: Commenting on the company's September quarter performance, Thierry Delaporte, CEO and Managing Director, Wipro, said: "We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors and markets led by vertical solution offerings."

Jatin Dalal, Chief Financial Officer, said: "It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2 percent to 19.2 percent in the IT Services segment. Our free cash flows as a percentage of net income for the first half were at 160.7 percent of net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders."

Comments

Post a Comment

Popular posts from this blog

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more

Similar to 2020, D-Street is at record high ahead of Budget 2021; will history repeat itself?

  Experts are of the view that a repeat of 2020 or what happened in March might not be possible but some consolidation cannot be ruled out. Back in March when everyone wanted to write-off 2020 from their books, hope and liquidity supported markets and investor sentiment. Nobody thought that after touching a 3-year low in March 2020, benchmark indices would give double-digit returns by the end of the year. The S&P BSE Sensex and Nifty50 rallied by about 15 percent in 2020 and the big outperformance came from the small and midcap stocks. The rally is still continuing in 2021. The S&P BSE Sensex, which climbed Mount 49K, is up over 3 percent while the Nifty50 is up over 4 percent so far in January. Sensex scaling the 49,000-mark and Nifty50 touching 14,500 levels ahead of the Budget 2021 could make anyone cautious about the strength of the rally. Back in January 2020, both Sensex and Nifty touched fresh highs ahead of Budget, and then the market fell like a pack of cards. The ...
Post a Comment
Read more