Wipro posts 21% jump in net profit for Q2 of FY25

Wipro, one of the leading Indian technology services companies, reported a 21.2% rise in net profit for the second quarter of FY25 and said it will offer a 1:1 share bonus issue.

Wipro reported a net profit of Rs 3,209 crore for the second quarter of FY25, as compared to Rs 2,646 crore in the similar period a year ago. The revenues of the company for the second quarter stood at Rs 22,302 crore which was about a 1% drop on a year-on-year basis.

However, the company did not hold a positive outlook for the third quarter of the fiscal year, as it gave a revenue guidance in the range of -2% to zero. This means that it does not expect much movement in revenues for the third quarter.

Soeaking about the performance of the company, Wipro CEO Srini Pallia said, “Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 billion once again.”

He further noted that Wipro grew in three out of four markets - BFSI, consumer and technology and communications sectors. “We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro,” he remarked.

Wipro's performance is below par when compared to its peers like TCS and Infosys, which reported revenue growths of 7.6% and 5.1% respectively for the second quarter.

The net profit rise for Wipro during the second quarter of FY25 was largely due to its lower employee base when compared to the similar period of FY24.

These factors helped Wipro show an improvement in its operating profit margins which came in at 16.8% for the second quarter of FY25 as compared to 16.5% in the first quarter.

“On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ. Our operating cash flow continues to be robust at 132.3% of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly $1B in operating cash flow,” Wipro CFO Aparna Iyer said.