Wipro Q2FY23 PAT down -9.27% at Rs2,659cr as operating costs pinch

13 Oct 2022 , 06:39 AM

Wipro reported 14.6% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs22,540cr. Sequential revenues were up 4.70%.

IT services revenues were up 4.1% sequentially and 12.9% on yoy basis. The total contract value (TCV) for Q2FY23 was up 23.8% yoy while the large order bookings were up by an impressive 42%.

The IT segment saw constant currency revenue growth of 4.1%. The operating cash flows for the quarter stood at 180% of the net income.

Wipro reported 19% accretion in the top 5 clients and a 17% accretion in the top 10 clients. In terms of guidance for Q3,

Wipro expects the revenue growth to be in the range of between 0.5% and 2%on sequential basis.

Consolidated Profit after tax (PAT) for September 2022 quarter was down -9.27% at Rs2,659cr as operating costs piled up.

The IT services operating margins stood at 15.1%, lower on a yoy basis but marginally better sequentially. Voluntary attrition at Wipro mildly tapered to 23%, but still remains high on absolute basis.

The small sequential margin improvement in the quarter was led by better price realizations in the quarter as Wipro fine tuned its focus on the premium clients.

Free cash flows to net income stood at 166%. Net margins tapered to 11.8% in the quarter; flat sequentially but lower on yoy basis by 310 bps.

Financial highlights for Sep-22 compared yoy and sequentially

	Wipro Ltd
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 22,540	₹ 19,669	14.60%	₹ 21,529	4.70%
Operating Profit (Rs cr)	₹ 3,380	₹ 3,441	-1.78%	₹ 3,183	6.19%
Net Profit (Rs cr)	₹ 2,659	₹ 2,931	-9.27%	₹ 2,564	3.72%
Diluted EPS (Rs)	₹ 4.86	₹ 5.36		₹ 4.69
OPM	15.00%	17.50%		14.79%
Net Margins	11.80%	14.90%		11.91%