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Wipro stock hits 10% upper circuit after Q2 earnings beat expectations, expects sequential growth of 2-4% in IT services biz revenue – Indiainfoline

Azim Premji’s Wipro reported an 18.9% rise in consolidated net profit to Rs2,930.7cr for the quarter ending September 2021 (Q2FY22). On a sequential basis, Wipro’s PAT dipped 9.6%. Overall, the company posted better-than-expected earnings.

Wipro’s consolidated revenue was at Rs19,667.4cr for the quarter under review, also beating the street’s expectations. The revenue grew by 30.1% yoy and 7.8% qoq in Q2FY22.

In Q2FY22, the company’s IT Services Segment Revenue was at $2,580 million, an increase of 6.9% QoQ and 29.5% YoY. Meanwhile, Non-GAAP2 constant currency IT Services Segment Revenue increased by 8.1% QoQ and 28.8% YoY.

Thierry Delaporte, CEO and Managing Director said, “The Q2 results demonstrate that our business strategy is working well. We grew at over 4.5% organic sequential growth for a second quarter in a row, resulting in a 28% YoY growth in the first half of this financial year. I thank our customers, partners, and colleagues as we surpassed the $10Bn milestone of annualized revenue run rate.”

Jatin Dalal, Chief Financial Officer said, “We sustained our operating margins in Q2 in a narrow band even after absorbing the full impact of our recent acquisitions and investing significantly in our business across sales, capabilities and talent. We completed a salary increase covering 80% of our colleagues, making it the second hike in this calendar year. We delivered robust growth in EPS of 23.8% YoY.”

Wipro expects Revenue from its IT Services business to be in the range of $2,631 million to $2,683 million. This translates to a sequential growth of 2.0% to 4.0%.

On Thursday, Wipro’s stock has hit a new 52-week high of Rs739.80 per piece, trading higher by 10% on Sensex, at around 12.16 pm.

The current stock level was also the upper circuit limit. The market cap of the company is over Rs4.04 lakh cr on this level.