The country's fourth largest IT services company, Wipro, on Wednesday missed Street estimates and reported a 0.5% y-o-y fall in net profit at Rs 2,646.3 crore. Sequentially, its net profit was down by 7.8%.
Its Q2 revenues too decreased amid a challenging macroeconomic environment. The company reported Rs 22,516 crore revenue from operations, a decrease of 0.1% from Rs 22,539.7 crore it reported a year-ago.
The company expects revenue from its IT Services business segment to be in the range of $2,617 million to $2,672 million in the current quarter. This translates to sequential decline of 3.5% to 1.5% in constant currency terms.
“We continue to win in the market despite the uncertain macro environment,” said Thierry Delaporte, CEO and Managing Director.
“We ended the second quarter with 22 accounts above the $100M range, which is double the number we had in FY’21. Our large deal total contract value reached $1.3 billion—highest in the last nine quarters," he added.
He added that, against a challenging environment, the company is continuing to take the bold decisions.
"We are investing in our technology infrastructure and streamlining our operations and delivery to drive profitable growth. We are training and reskilling our people so they can be ready for an AI-driven future. The investments we made in our ai360 strategy are helping us realize significant efficiencies across our organisation and creating an early leadership position in this fast-evolving space," he added.
The company's IT services operating margin for the quarter was at 16.1%, up 10 bps QoQ and 100 bps YoY. Its voluntary attrition has continued to moderate QoQ, coming in at 9-quarter low of 13.4% in Q2. Also, the company's headcount declined by 5,050 in the second quarter.