Wipro Q2 results: Constant currency revenue grows after six-quarter decline; Declared bonus

said on Thursday it expects revenue growth to be between a 2% decline and 0% quarter-over-quarter growth for the October-December period, the company said in its earnings update. In absolute terms, the company expects revenue to be between US$2,607 million and US$2,660 million.

Wipro sees growth in the second quarter after six quarters of decline, reporting steady foreign currency revenue growth of 0.6% over the previous quarter.

The IT company’s US dollar revenue during the September quarter (Q2FY25) stood at 2,660 million dollars, which was slightly higher than the survey of 2,651 million dollars.

Revenue in rupee terms increased by 1.3% compared to CNBC-TV18’s survey of 1%.

EBIT or earnings before interest and tax was ₹3,732 million, up 3.5% from the previous June quarter and higher than the estimate of ₹3,666 million.

The EBIT margin for the quarter was 16.8%, higher than the CNBC-TV18 survey projection of 16.5%.

Large business bookings during the quarter were $1.5 billion, the highest in 10 quarters.

The Wipro board also announced the issuance of bonus shares in the ratio of 1:1 to its shareholders.

This means that the company will issue one free share for every share held by shareholders on the record date.

The registration date of said corporate action has not yet been determined.

The bonus shares would be credited to the shareholders’ account within two months from the date of Board approval i.e. December 15, 2024.

Companies issue bonus shares to capitalize on their free reserves, increase their earnings per share (EPS) and paid-in capital, and reduce reserves. Shareholders receive these shares at no additional cost and are therefore also known as free shares.

Only investors who purchase shares before the ex date will be eligible to receive bonus shares. If the investor purchases shares on the ex-date or after that date, he or she will not be entitled to receive bonus shares.

Wipro promoters currently held 72.80% stake in the company at the end of the September quarter.

Shares of Wipro Ltd. closed 0.65% lower at ₹528.70. Shares are up nearly 11% so far in 2024.