Wipro posts good set of numbers in Q2

Wipro is a global IT services, BPO and Product Engineering companies. It has also entered the consumer product and lighting solutions market. The company provides its services to many industries including aerospace, automotive, banking, healthcare, telecommunication, consumer electronics, retail, media, manufacturing, public infrastructure, utilities and many more.

Recently, Wipro announced its second quarter FY16 results, wherein its total income rose by 1.59 per cent to Rs 12566.8 crore as against Rs 12370.6 crore in Q1FY16. The IT Services Segment Revenue stood at USD1831.9 million , a sequential increase of 2.1 per cent. Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew by 3.1 per cent sequentially.

The total expenses increased by 1.7 per cent to Rs 10137.9 crore q-o-q basis. The EBITDA increased by 1.57 per cent to Rs 2781.9 crore, EBITDA margin was stable during the quarter to 22.14 per cent on quarterly basis.

Wipro's other income increased by 18.16 per cent to Rs 619.4 crore, it's finance cost increased by 60.67 per cent to Rs 158.9 crore, while the tax expenses increased to Rs 648.6 crore on sequential basis. The net profit of Wipro stood at Rs 2235.4 crore in Q2FY16 as against Rs 2187.7 crore in Q1FY16, rising by 2.18 per cent.

The IT Services segment had a headcount of 168396 as of September 30, 2015. Wipro added 67 new customers during the quarter. Wipro is expecting Revenues from IT Services business to be in the range of USD 1841 million to USD 1878 million in the next quarter Q3FY16.

Commenting on Q2FY16 results, T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said, “During the quarter, we grew IT Services Revenues in dollar terms by 3.1 per cent in constant currency and maintained margins in a narrow range. Wipro Digital, strengthened uniquely by the addition of Designit, with both strategic design process capability along with Wipro’s technological capability is positioning us uniquely as an integrated design and technology player. Wipro HOLMESTM, our cognitive intelligence platform, is engaged in 12 projects in business-critical areas for marquee customers and positioning Wipro favorably in the marketplace.”

The FII holdings of Wipro rose by 42 basis points to 10.68 per cent, while DII holdings of Wipro reduced by 25 basis points to 4.61 per cent as on 30th September 2015. Yesterday, after the result announcement the stock closed at Rs 578, up by 1 per cent.