Wipro shares climb more than 5% after Q2 earnings

New Delhi, Oct 18 (PTI) Shares of IT company Wipro climbed nearly 6 per cent on Friday after the firm posted a 21.2 per cent year-on-year rise in consolidated net profit for Q2 FY25.

The company's stock advanced 5.52 per cent to Rs 558 on the BSE.

At the NSE, it jumped 5.60 per cent to Rs 558.40.

Wipro on Thursday posted a 21.2 per cent year-on-year rise in its consolidated net profit to Rs 3,208.8 crore for Q2 FY25 on higher operating profit but gave weak revenue guidance for the next quarter.

It had reported a profit of Rs 2,646.3 crore in the year-ago period.

The revenue from operations for the reporting quarter was Rs 22,301.6 crore, a 0.95 per cent decline from Rs 22,515.9 crore in Q2 FY24.

Wipro CEO and MD Srini Pallia said the Q2 was driven by strong execution, which enabled the Bengaluru-based firm to meet its expectations for revenue growth, bookings, and margins.

"We continued to expand our top accounts, large deal bookings surpassed USD 1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, consumer, technology and communications sectors," he said.

However, its revenue for the October-December quarter is expected to be affected by "seasonal furloughs and fewer working days", Pallia said during the company's earnings press conference.

"As a result, we are guiding a sequential revenue growth of -2 per cent to 0 per cent in constant currency. Despite softness in revenue in Q3, we are confident of maintaining our margin in a narrow band," he said.

The company had earlier given revenue guidance from -1 to +1 per cent for Q2 FY25.

"The long-term potential of our business is strong, and we are prepared to handle the current economic uncertainties," Pallia said. PTI