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View Promises →Wipro Limited — Q2 FY25
Wipro's Q2 FY25 results met expectations with IT services revenue of $2.66B (0.6% QoQ CC) and operating margin of 16.8%, expanding 71bps YoY.
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Wipro's Q2 FY25 results met expectations with IT services revenue of $2.66B (0.6% QoQ CC) and operating margin of 16.8%, expanding 71bps YoY. Growth was driven by BFSI (2.7% QoQ) and Technology & Communications (1.6% QoQ), while Manufacturing (-2%) and Energy & Utilities (-3.7%) remained weak. Total bookings of $3.6B included 19 large deals with TCV of $1.49B, up 29% QoQ. Management guided Q3 revenue of -2% to 0% QoQ CC due to seasonal furloughs and fewer working days, but expects margins to stay in a narrow band. Key risks include continued weakness in Europe and delayed recovery in Manufacturing and ENU verticals.
विप्रो की दूसरी तिमाही के नतीजे उम्मीद के मुताबिक रहे। आईटी सेवाओं से कमाई 2.66 अरब डॉलर रही, जो पिछली तिमाही से 0.6% बढ़ी। कंपनी का मुनाफा 16.8% रहा, जो पिछले साल से 0.71% ज्यादा है। बैंकिंग और टेक्नोलॉजी क्षेत्र में अच्छी बढ़ोतरी हुई, लेकिन मैन्युफैक्चरिंग और एनर्जी क्षेत्र कमजोर रहे। कुल ऑर्डर 3.6 अरब डॉलर के आए, जिसमें 19 बड़े सौदे शामिल हैं। अगली तिमाही में कमाई 2% तक घट सकती है क्योंकि छुट्टियों और कम काम के दिन होंगे। यूरोप में कमजोरी और मैन्युफैक्चरिंग क्षेत्र में सुस्ती जारी रहने का खतरा है।
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Continued weakness in Europe
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Read Transcript →Quarter Snapshot
IT Services Revenue (Q2)
$2.66B
+0.6% QoQ
Sequential growth in constant currency, near upper end of guidance.
Total Bookings (Q2)
$3.6B
+8.4% QoQ
Strong bookings driven by large deal wins.
Large Deal TCV (Q2)
$1.49B
+29% QoQ
19 large deals booked, up 16.8% YoY.
Operating Cash Flow (Q2)
$510M
132.3% of net income
Strong cash generation, cumulative H1 nearly $1B.
What Changed vs Last Quarter
NEW
Target operating margin band of 17%-17.5%
Q2 margin of 16.8% brings company closer to the aspirational band; revenue growth needed to sustain beyond 17%.
UPDATED
Q3 FY25 revenue guidance: -2% to 0% QoQ CC
Revenue expected to be $2.607B-$2.660B, impacted by seasonal furloughs and fewer working days.
UPDATED
Margins expected to stay in narrow band in Q3
Despite headwinds from furloughs and salary increases, management confident of maintaining margins within a narrow band.
NEW RISK
Continued weakness in Europe
Europe declined 0.1% QoQ due to weak demand and client-specific issues; management expects softness to persist in Q3.
NEW RISK
Delayed recovery in Manufacturing and ENU
Manufacturing (-2%) and Energy & Utilities (-3.7%) remained weak; management cited pipeline but no timeline for recovery.
NEW RISK
Furlough impact on BFSI and Capco
Capco's consulting business is more susceptible to furloughs, which could weigh on Q3 growth despite strong momentum.
NEW RISK
Slow conversion of large deals to revenue
Large deals take 2-3 quarters to ramp up; analyst flagged delayed conversion, though management expressed confidence.
RISK GONE
Softness in Europe and APMEA
Europe and APMEA markets declined sequentially, with Europe pipeline healthy but conversion weak; APMEA strategy under review.
RISK GONE
Delayed ramp-up of large deals
Large deals signed in Q1 may take several quarters to fully ramp, limiting near-term revenue upside.
RISK GONE
Energy & Utilities weakness
E&U vertical declined 6.3% sequentially due to end of large programs; recovery dependent on pipeline conversion.
RISK GONE
Competitive intensity from GenAI pricing
Some competitors offering large productivity gains to clients via GenAI, potentially pressuring pricing.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Management guided sequential constant currency revenue growth of 2%-4% for Q4 FY24.
Mentioned in Q1 FY24, Q2 FY24, Q4 FY24
Management expects margins to stay within a narrow band similar to recent quarters, with no specific target provided.
Fast read
Guidance and risk preview
Revenue expected to be $2.607B-$2.660B, impacted by seasonal furloughs and fewer working days.
Europe declined 0.1% QoQ due to weak demand and client-specific issues; management expects softness to persist in Q3.
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