Wipro's Profit Surges with Record Bookings Despite Revenue Dip

Wipro Limited reported a 21% increase in net profit for the second quarter of FY25, reaching ₹3,209 crore, despite a decline in consolidated revenue. The IT giant's large deal bookings hit $1.5 billion, the highest in ten quarters, and announced a 1:1 bonus share issue.

IT powerhouse Wipro Limited has reported a substantial 21% rise in net profit for the second quarter of FY25, climbing from ₹2,646 crore to ₹3,209 crore compared to the same quarter last year. Despite this profit boost, the company's consolidated revenue experienced a slight dip, falling to ₹22,302 crore for the July-September quarter from ₹22,543 crore a year ago.

The firm witnessed a 6.8% quarter-on-quarter and a 21.3% year-on-year growth in net income. IT Services revenue grew 1.3% quarter-on-quarter, with net margins expanding by 35 basis points. Wipro's large deal bookings reached an impressive $1.5 billion, marking the highest volume in the past ten quarters.

Adding to the positive news, Wipro's operating cash flows increased by 10.5% year-on-year, recording at ₹42.7 billion, which is 132.3% of the net income for the quarter. In a move to benefit shareholders, the board approved the issuance of bonus shares in the ratio of 1:1, pending shareholder approval.

Wipro's CEO and Managing Director, Srini Pallia, attributed the success to robust execution. 'Our revenue growth, bookings, and margin expansion met expectations, with three out of four markets showing growth,' he remarked, highlighting achievements in the BFSI, Consumer, and Technology and Communications sectors. He emphasized the continued investment in clients, strategic priorities, and AI-powered initiatives.

Aparna Iyer, the Chief Financial Officer, expressed satisfaction with the second-quarter performance, marking improvements in revenue, bookings, margins, cash flow, and EPS. 'Our operational enhancements have expanded margins by 35 basis points, and EPS recorded a growth of 6.8% quarter-on-quarter,' she stated. Iyer also pointed out the robustness of the operating cash flow, which constituted 132.3% of net income in Q2, nearing $1 billion for the year's first half.

(With inputs from agencies.)