Wipro Q2 net profit declines 3.4% to ₹2,466 cr

New Delhi: IT services major Wipro Ltd on Tuesday reported 3.4% drop in its consolidated net profit for the quarter ended 30 September at ₹2,466 crore as against ₹2,553 crore in the year-ago period.

Consolidated revenue was nearly unchanged at ₹15,115 crore as compared to ₹15,126 crore in September 2019.

Consolidated IT services revenue was at ₹14,768 crore in Q2FY21 as against ₹14,656 crore in the year-ago period.

Also, Wipro Board on Tuesday approved up to ₹9,500 crore buyback plan at ₹400 per share, which is a 6.4% premium to current market price of of ₹375.5 on BSE.

September quarter IT services operating margin was 19.2% versus 18.1% a year ago and the Bengaluru-based company added 97 new customers during the quarter.

Wipro expects its revenue from IT Services business to be in the range of $2,022-2,062 million for the December quarter, translating to a sequential growth of 1.5-3.5 per cent. Its IT services segment revenue in the September quarter was at $1,992.4 million - an increase of 3.7 per cent quarter-on-quarter.

"We had an excellent quarter with growth in revenues, expansion of margins and robust cash generation. I am very excited about the opportunities that are ahead of us and encouraged by the acceleration in business momentum we have seen this quarter," Wipro CEO and Managing Director Thierry Delaporte said.

He added that the company's strategy is to focus on growth in prioritised sectors and markets led by vertical solution offerings.