Wipro's revenue dips for third consecutive quarter to $2.7 billion
IT giant Wipro has posted a revenue of $2.7 billion for Q2 of FY24, experiencing a 2.3% sequential decline and a 2% drop in constant currency. This marks the third quarter in a row that the company has seen a dip in revenue. The primary reasons for this decline include ongoing weakness in the banking, financial services, and insurance (BFSI) sector, as well as Wipro's significant exposure to consulting during a time of reduced discretionary spending.
Operating margins and wage increases
On the bright side, Wipro's operating margins rose by 10 basis points to 16.1% from the previous quarter's 16%. However, the company is set to implement wage increases in Q3, which could further impact the margins. Wipro's total contract value (TCV) for deal wins in the quarter reached $3.78 billion, a slight increase from last quarter's $3.72 billion.
CEO Thierry Delaporte's statement on investments
CEO Thierry Delaporte remains optimistic about the company's ability to succeed in the market, irrespective of the uncertain macro environment. He emphasized the crucial factors for long-term growth and resilience amidst changing business and economic landscapes. They include Wipro's investments in technology infrastructure, streamlining operations and delivery, and also preparing employees for an AI-driven future.
CFO highlighted profitable growth focus
This earnings report is the first under new Chief Financial Officer Aparna Iyer, who took over from former CFO Jatin Dalal. She pointed out that a disciplined approach to enhancing efficiency, productivity, and utilization led to a 100 basis points YoY increase in IT services operating margins, and a 6% YoY growth in absolute IT services segment EBIT. The company generated a robust operating cash flow of 145% of net income for the quarter.
