The Bengaluru-based company’s second quarter profits were up by 17.9% to Rs 2,930 crore and revenue by 30.1% to Rs 19,667 crore on the back of strong demand environment across all sectors and business lines, the company said.
Wipro grew 7.8% over the previous quarter, beating its own guidance and analyst estimates. Its profits, however, declined by 9.6% sequentially, which was still above street estimates.
“We’ve experienced secular growth across all markets across all sectors and global business lines. Our recent acquisitions too have performed ahead of expectations,” said Thierry Delaporte, CEO of Wipro.
The company grew by 4.6% sequentially on a constant currency basis in the second quarter, its second consecutive quarter of over 4.5% growth in constant currency terms, Delaporte said.
Wipro has forecast to grow between 2-4% sequentially and 27-30% on a year-on-year basis in the range of $2.63 to $2.68 billion in the quarter ending December 31.
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“The demand environment continues to be very strong, and our pipeline is a clear reflection of that. In fact, our pipeline is among the highest in recent quarters with a good mix of large and medium size deals,” Delaporte added.
The company said that its annual contract value was up 28% and it signed nine large deals of a total contract value of $580 million in the quarter. Operating margins were flat at 17.8% despite absorbing the full impact of recent acquisitions of Capco and Ampion, and offering salary increases covering 80% of its workforce that was effective from September 1, 2021.
On the performance of Capco, which Wipro acquired for $1.5 billion in April, Delaporte said the company has won 10 deals in the first 100 days since the transactions closure, but it was still initial days.
Attrition and hiring
Wipro saw people attrition of 20.5% in the second quarter, as the demand for technology talent remains high in the market. The company said its total headcount had grown to 221,365 at the end of the second quarter.
“One of the issues that we must cope with is attrition as we build talent at scale. Our customers too are grappling with increased attrition. Wipro acknowledges this new talent landscape, and has adapted quickly to the new world of work. Hybrid work environment is definitely a part of this mix,” Delaporte said.
The company said it added 8,000 freshers in the second quarter and plans to add 25,000 freshers, its highest ever number, in fiscal year 2022-23, for which it will make offers this year.
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