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Wipro’s Q2 Revenue Falls Short Of Expectations, CEO Highlights Growth In Large Accounts

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Wipro Limited (NASDAQ: WIT) reported second-quarter gross revenue of $2.71 billion, which was relatively flat compared to the previous year and fell short of the consensus expectation of $2.77 billion. The company’s earnings per share (EPS) of $0.06 also missed the consensus estimate of $0.07.

The IT Services revenue for the quarter declined by 2.3% compared to the previous quarter, reaching $2.71 billion. The non-GAAP constant currency IT Services segment revenue decreased by 2.0% quarter-on-quarter. However, Wipro’s operating margin for IT Services improved by 10 basis points compared to the previous quarter, reaching 16.1%.

Net income for the quarter was $318.5 million, down 0.5% year-on-year. The company’s operating cash flow stood at $465 million. As of September 30, Wipro held $4.07 billion in cash and equivalents.

Despite the lower-than-expected revenue, Wipro’s CEO and Managing Director, Thierry Delaporte, highlighted the growth in large accounts. Delaporte stated, β€œWe ended the second quarter with 22 accounts above the $100 million range, which is double the number we had in FY’21. Our large deal total contract value reached $1.3 billion, the highest in the last nine quarters.”

Q3 Outlook

Looking ahead, Wipro expects the IT Services business revenue for the third quarter to range from $2.617 billion to $2.672 billion in constant currency terms, representing a quarter-on-quarter decline of -3.5% to -1.5%. This falls short of the total revenue consensus of $2.81 billion.

Price Action

Following the earnings report, Wipro’s stock (WIT) traded lower by 2.66% at $4.75 on the last check Wednesday.

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