IT services' company Wipro has posted a 3.4 per cent decrease in net profit to ₹2,470 crore for the second quarter of this fiscal on year on year basis.
The IT services' major which gave a forecast for the quarter ending December 31, 2020, said it expects revenue from its IT Services business to be in the range of $2.02 billion to $2.06 billion. This translates to a sequential growth of 1.5 per cent to 3.5 per cent.
Wipro's gross revenue was ₹15,110 crore, an increase of 1.4 per cent QoQ and a decrease of 0.1 per cent year on year. The IT Services Segment Revenue was at $1.9 billion, an increase of 3.7 per cent QoQ. IT Services Operating Margin for the quarter was at 19.2 per cent, an expansion of 0.2 per cent QoQ and 1.1 per cent YoY.
Thierry Delaporte, CEO and Managing Director said, “we had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter. Our strategy is to focus on growth in prioritized sectors & markets led by vertical solution offerings.”
Jatin Dalal, Chief Financial Officer said, “It was another quarter of strong performance on margins and cash flows. We improved on several operating parameters to deliver margin expansion of 0.2% to 19.2% in the IT Services segment. Our Free Cash Flows as a percentage of Net Income for the first half was at 160.7% of Net income. The announcement to buyback equity shares is part of our philosophy to deliver consistent returns to shareholders.”