Wipro (WIPRO) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 IT Services revenue was $2.66 billion (₹223,016 million), up 1.3% QoQ but nearly flat or down 2% YoY in reported terms, with net income rising 21.3% YoY to ₹32,266 million.

• Strong deal momentum with total bookings at $3.6 billion, large deal bookings at $1.5 billion, and operational improvements noted.

• Focus remains on five strategic priorities, including large account growth, AI adoption, and talent development.

• Early signs of stabilization in APMEA and continued strength in Americas; Europe faces client-specific headwinds.

• Board approved a 1:1 bonus share issue post-period, pending shareholder approval.

Financial highlights

• Operating margin expanded to 16.8%, up 35 bps QoQ and 71 bps YoY, with operating income at ₹37,149 million, up 11% YoY.

• Net income grew 21.3% YoY; EPS at ₹6.14, up 6.8% sequentially.

• Operating cash flow was $510 million (132.3% of net income), with H1 cumulative cash flow near $1 billion.

• Total bookings reached $3.6 billion, up 8.4% QoQ; 19 large deals booked with TCV of $1.489 billion, up 29% QoQ and 16.8% YoY.

• Cash and cash equivalents increased to ₹104,592 million as of September 30, 2024.

Outlook and guidance

• Q3 revenue guidance: sequential growth of -2% to 0% in constant currency, reflecting seasonal furloughs, fewer working days, and ongoing client-specific challenges in Europe.

• IT services revenue for Q3 guided at $2.607-$2.660 billion.

• Margins expected to remain stable within a narrow band despite revenue softness.

• The company is assessing the impact of new IFRS standards for future reporting.

• The bonus share issue, if approved, will retrospectively adjust EPS for all periods.