Quarterly Results for Wipro and Infosys
This document summarizes the Q2FY25 quarterly results for Wipro Ltd and the H1FY25 & Q2FY25 results for Infosys Ltd. Both IT consulting and software companies have reported their financial performance, including revenue growth, operating margins, and key highlights from their respective CEOs and CFOs.
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by RA ALOK DAIYA SEBI Reg. INH000011468
Wipro Q2FY25 Revenue Performance
Wipro Ltd announced its Q2FY25 results with the following revenue highlights:
- Gross revenue was at Rs 223.0 billion (USD 2,662.6 million), an increase of 1.5% QoQ and decrease of 1.0% YoY.
- IT services segment revenue was at USD 2,660.1 million, an increase of 1.3% QoQ and decrease of 2.0% YoY.
- Non-GAAP constant currency IT Services segment revenue increased 0.6% QoQ and decreased 2.3% YoY.
Wipro Q2FY25 Bookings and Margins
Total Bookings
Total bookings was at USD 3,561 million. Large deal bookings was at USD 1,489 million, an increase of 28.8% QoQ and 16.8% YoY in constant currency.
Operating Margin
IT services operating margin for the quarter was at 16.8%, an increase of 0.3% QoQ and 0.7% YoY.
Net Income
Net income for the quarter was at Rs 32.1 billion (USD 383.1 million), an increase of 6.8% QoQ and 21.3% YoY.
Wipro Q2FY25 Financial Metrics
Wipro reported the following financial metrics for Q2FY25:
- Earnings per share for the quarter was at Rs 6.14 (USD 0.07), an increase of 6.8% QoQ and 21.3% YoY.
- Operating cash flows of Rs 42.7 billion (USD 509.7 million), an increase of 10.5% YoY and at 132.3% of Net Income for the quarter.
- Voluntary attrition was at 14.5% on a trailing 12-month basis.
Wipro Bonus Share Announcement
Wipro's Board of Directors recommended issue of bonus shares to shareholders (including stock dividend to ADS holders) in the ratio of 1:1 (1 equity share for every 1 equity share held), subject to approval of shareholders.
Wipro CEO Statement
"Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed USD 1 bilion 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 and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI powered Wipro"
- Srini Pallia, CEO and Managing Director
Wipro CFO Statement
"I am pleased with our performance across all parameters including Revenue, Bookings, Operating margin, cash flow and EPS. On the back of operational improvements, we further expanded our margins by 35 basis points and our EPS grew 6.8% QoQ. Our operating cash flow continues to be robust at 132.3% of net income in Q2. As a result, cumulatively in the first half of this year we generated nearly USD 1 billion in operating cash flow."
- Aparna Iyer, Chief Financial Officer
Infosys Q2FY25 Financial Highlights
1
Revenue Growth
Revenues in CC terms grew by 3.3% YoY and 3.1% QoQ. Reported revenues at Rs 40,986 crore, growth of 5.1% YoY.
2
Operating Margin
Operating margin at 21.1%, decline of 0.1% YoY and flat QoQ.
3
Earnings Per Share
Basic EPS at Rs 15.71, growth of 4.7% YoY.
4
Free Cash Flow
FCF at Rs 7,010 crore, growth of 26.6% YoY; FCF conversion at 107.6% of net profit.
Infosys H1FY25 Financial Highlights
Infosys CEO Statement
"We had strong growth of 3.1% quarter-on-quarter in constant current in Q2. The growth was broad based with good momentum in financial services. This stems from our strength in industry expertise, market leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us. Our large deals at $2.4 billion in Q2 reflect our differentiated position. I am grateful to our employees for their unwavering commitment to our client as we further strengthen our market leadership".
- Salil Parekh, CEO and MD, Infosys
Infosys CFO Statement
"We continue to focus on accelerating revenue growth with a sharp focus on margin performance. Operating margins for the quarter was at 21.1%, driven by continued benefits from value-based pricing and utilization despite higher employee payouts. Our focus on cash generation resulted in another quarter of over 100% Free Cash Flow conversion to net profits".
- Jayesh Sanghrajka, CFO, Infosys
Comparison of Wipro and Infosys Q2FY25 Performance
Wipro
- Gross revenue: Rs 223.0 billion (USD 2,662.6 million)
- IT services operating margin: 16.8%
- Net income: Rs 32.1 billion (USD 383.1 million)
Infosys
- Reported revenues: Rs 40,986 crore
- Operating margin: 21.1%
- Basic EPS: Rs 15.71
Key Strengths Highlighted by Both Companies
1
Strong Execution
Both Wipro and Infosys emphasized their strong execution in Q2, meeting expectations for revenue growth and margins.
2
Large Deal Bookings
Wipro's large deal bookings surpassed USD 1 billion, while Infosys reported large deals at $2.4 billion in Q2.
3
Focus on AI and Cloud
Both companies highlighted their investments in AI and cloud technologies, with Infosys specifically mentioning Cobalt for cloud and Topaz for generative AI.
4
Strong Cash Flow
Both Wipro and Infosys reported robust operating cash flows and high Free Cash Flow conversion rates.
Future Outlook and Strategies
Both Wipro and Infosys have outlined their strategies for future growth:
- Wipro plans to continue investing in clients, strategic priorities, and building a strong AI-powered Wipro.
- Infosys is focusing on accelerating revenue growth with a sharp focus on margin performance.
- Both companies are leveraging their industry expertise and market-leading capabilities in cloud and AI technologies.
- There is a strong emphasis on large deals and expanding top accounts to drive growth.