Wipro’s net slides 9.2% to ₹2,659 crore in Q2
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Wipro, a provider of technology services and a leader in digital transformation, announced a 9.27% drop in second-quarter net profit to $2,659 crore on Wednesday.
But revenue rose 14.6% to Rs. 22,540 crore.
Revenue from IT services, which make up more than 95% of all commercial activity, was $2.79 billion, up 8.4% year over year. According to the corporation, IT revenue increased over the prior quarter by 4.1% in constant currency terms.
Thierry Delaporte informed the media that “macroeconomic conditions have changed since we last spoke in July in practically all markets and sectors.”
He continued, “It is against this backdrop that we delivered a great quarter in Q2”. In the quarter, Wipro secured 11 sizable contracts totalling $725 million.
In contrast to the prior quarter’s operating margin of 15%, Wipro reported an operating margin of 15.1% for Q2. Even though it gave its employees raises and promotions during this time, the company claimed it still improved its margins.
The company expects its IT services division to generate between $2,811 million and $2,853 million in revenue for the third quarter, representing sequential growth of 0.5 to 2% in constant currency.
Additionally, Wipro reported that in Q2, it promoted more than 10,000 workers, made general salary adjustments, and announced that 85% of its staff would receive 100% variable pay.
The corporation hired 14,000 freshmen in the first half of the current fiscal year as well, but its net job growth slowed to 605 in the second quarter, bringing its total staff base to 2,59,179.
Additionally, its voluntary attrition for the quarter was 23%, down 30 bps from the prior quarter when assessed over the prior 12 months.
According to Mr. Thierry, Wipro has a definite stance on moonlighting. It’s an ethical issue. In response to questions from the media on the subject, he stated that conflicts of interest occur when the existing interest is confused or compromised. Working a second job is nothing new. We shall act when there is a conflict of interest and a breach of the employment contract. Saurabh Govil, CHRO of Wipro, explained that this has always been the case.