WIPRO Announces Quarterly Results (2QFY20); Net Profit Up 36.0%
Wed, 16 Oct

WIPRO has announced its results for the quarter ended September 2019. Here is a detailed performance review of the same:

WIPRO Quarterly Financials

No. of Mths
Qtr. Ending
3
Sep-18*
3
Jun-19*
3
Sep-19*
QoQ ChangeYoY Change
Net SalesRs m145,410147,860151,3062.3%4.1%
Other incomeRs m6,6227,8067,448-4.6%12.5%
TurnoverRs m152,032155,666158,7542.0%4.4%
ExpensesRs m121,911118,391120,3481.7%-1.3%
Gross profitRs m23,49929,46930,9585.1%31.7%
DepreciationRs m4,3684,9534,812-2.8%10.2%
InterestRs m1,5691,5842,24741.9%43.2%
Profit before taxRs m24,18430,73831,3472.0%29.6%
TaxRs m5,3476,6995,732-14.4%7.2%
Profit after taxRs m18,83724,03925,6156.6%36.0%
Gross profit margin%16.219.920.5
Effective tax rate%22.121.818.3
Net profit margin%12.415.416.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 4.1% on a year-on-year (YoY) basis. The expenses were down by 1.3% YoY during the same period.
  • The company's operating profit increased by 31.7% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.5% in 2QFY20 as against 16.2% in 2QFY19.
  • Depreciation charges increased by 10.2% and finance costs increased by 43.2% YoY, respectively.
  • Other income increased by 12.5% YoY during the quarter.
  • Net profit for the quarter increased by 36.0% YoY. Net profit margins during the quarter increased from 12.4% in 2QFY19 to 16.1% in 2QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter grew 2.3% on a quarter-on-quarter (QoQ) basis. The expenses were up by 1.7% QoQ during the same period.
  • The company's operating profit increased by 5.1% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 20.5% in 2QFY20 as against 19.9% in 1QFY19.
  • Net profit for the quarter increased by 6.6% QoQ, while net profit margins increased from 15.4% in 1QFY19 to 16.1% in 2QFY20.

To see how WIPRO has performed over the last eight quarters,please visit here.

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WIPRO Share Price Performance

Over the last one year,WIPRO share price has moved up from Rs 240.1 to Rs 246.5, registering a Gain of Rs 6.4 or around 2.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,254.3 (up 0.2%). Over the last one year it has moved up from 14,677.5 to 15,254.3, a gain of 577 points (up 3.9%).

Overall, the S&P BSE SENSEX is up 10.7% over the year.

Current Valuations

At the current price of Rs 246.5, the price to earnings (P/E) ratio of WIPRO stands at 11.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.0 times.