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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹22,516 Cr
verified against source
Revenue YoY
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reported change
EBITDA
Pending
latest reported figure
Source
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Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Wipro's Q2 FY24 results reflect a challenging demand environment with IT services revenue declining 2% QoQ in constant currency, at the lower end of guidance. Despite strong large deal bookings of $1.3 billion (up 79% YoY), conversion to revenue is slower due to reduced discretionary spending. Operating margin held steady at 16.1%, expanding 100bps YoY, driven by operational efficiencies and utilization improvement to 84.5%. The company guided Q3 revenue sequentially down 1.5%-3.5% in constant currency, citing furloughs and continued macro uncertainty. Management expressed confidence in a rebound as deal backlog builds, but near-term visibility remains low. Key risk: slower-than-expected conversion of record deal wins into revenue amid persistent client caution.
Colored figures show movement against the previous available record.
Guidance to track
- IT services revenue expected between $2.617B and $2.672B, reflecting furloughs and weak discretionary spend.
- Despite wage hikes from December and softer revenue, management aims to keep margins within recent quarters' band.
- Management sees strong deal backlog and pipeline, expecting growth improvement as market stabilizes.
Risks flagged
- Despite record TCV, revenue growth lags due to extended deal conversion timelines and lower discretionary spend.
- Europe declined 5% QoQ and Americas Two declined 2.3% QoQ, driven by financial services and manufacturing slowdown.
- Wage hikes effective December and seasonal furloughs will pressure margins; management only expects range-bound performance.
- Analyst noted Wipro's organic growth is among the lowest in the industry; management attributes to portfolio mix and transformation focus.
Key quotes
- We are winning more large deals. There's a good balance between new and renewals.
- Our operating margins for the second quarter were 16.1%, an expansion of 100 basis points year-on-year.
- We are seeing a doubling of GenAI active projects than we did just one quarter ago.
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