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 in reported terms, with net income rising 21.3% YoY to ₹32,266 million and EPS at ₹6.14, up 6.8% sequentially.

• Operating margin expanded to 16.8%, up 35 bps QoQ and 71 bps YoY, and operating cash flows were 132.3% of net income.

• Total bookings reached $3.6 billion, up 8.4% QoQ, with 19 large deals totaling $1.5 billion TCV.

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

• Over 44,000 employees trained and certified on advanced AI, with a leadership summit held in Bangalore.

Financial highlights

• IT Services revenue grew 1.3% QoQ in reported currency and 0.6% in constant currency; operating income for Q2 FY25 was ₹37,149 million, up 11% YoY.

• Operating margin at 16.8%, with margin expansion despite absorbing salary increments.

• Operating cash flow for Q2 was $510 million (₹42.7 billion), 132.3% of net income; H1 operating cash flow nearly $1 billion.

• Investments and cash balances stood at $6.2 billion at Q2 end; cash and cash equivalents at ₹104,592 million.

• Other income, net of finance expenses, grew 34.2% sequentially; accounting yield for Indian investments at 7.9%.

Outlook and guidance

• Q3 revenue expected to be impacted by seasonal furloughs and fewer working days, with guidance for sequential revenue growth of -2% to 0% in constant currency.

• IT Services revenue guidance for Q3: $2.607 billion–$2.660 billion.

• Margins expected to remain 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.