Wipro’s Impressive Q2FY25 Performance
Wipro Limited, a leading IT company, has reported a significant 21% increase in net profit for the second quarter of the fiscal year 2025. The net profit rose from Rs 2,646 crore to Rs 3,209 crore compared to the same period last year. However, the company’s consolidated revenue slightly decreased to Rs 22,302 crore from Rs 22,543 crore.
Financial Highlights
Wipro’s net income grew by 6.8% quarter-on-quarter and 21.3% year-on-year. Revenue from IT services saw a modest increase of 1.3% quarter-on-quarter. The net margin expanded by 35 basis points. The company’s large deal bookings reached USD 1.5 billion, marking the highest in ten quarters. Operating cash flows were recorded at Rs 42.7 billion, a 10.5% year-on-year increase, representing 132.3% of the net income for the quarter.
Bonus Shares Announcement
The board of directors has approved the issuance of bonus shares to shareholders in a 1:1 ratio, pending shareholder approval.
Leadership Insights
Srini Pallia, CEO and Managing Director, expressed satisfaction with the company’s performance, highlighting growth in three out of four markets and sectors such as BFSI, Consumer, and Technology and Communications. He emphasized the company’s commitment to investing in clients and strategic priorities, including AI-powered initiatives.
Aparna Iyer, Chief Financial Officer, also expressed contentment with the company’s performance, noting improvements in revenue, bookings, operating margin, cash flow, and EPS. She highlighted the robust operating cash flow, which reached nearly $1 billion in the first half of the year.
Doubts Revealed
Wipro -: Wipro is a big company in India that provides technology services and solutions to businesses around the world. It’s one of the leading IT companies in India.
Q2FY25 -: Q2FY25 stands for the second quarter of the financial year 2024-2025. In India, the financial year starts in April and ends in March of the next year.
Net profit -: Net profit is the amount of money a company earns after subtracting all its costs and expenses. It’s like the company’s earnings after paying for everything it needs to run.
Consolidated revenue -: Consolidated revenue is the total money a company makes from all its different parts or businesses combined. It’s like adding up all the money earned from different activities.
QoQ -: QoQ means Quarter on Quarter, which is a way to compare a company’s performance in one quarter with the previous quarter.
YoY -: YoY stands for Year on Year, which is a way to compare a company’s performance in one year with the previous year.
Bonus shares -: Bonus shares are extra shares given to existing shareholders for free. It’s like a gift from the company to its investors.
Large deal bookings -: Large deal bookings refer to big contracts or agreements that a company secures with its clients. It’s like getting a big order from a customer.
CEO -: CEO stands for Chief Executive Officer, who is the top person in charge of managing a company. They make important decisions for the company.
CFO -: CFO stands for Chief Financial Officer, who is responsible for managing the financial actions of a company. They handle money matters and financial planning.