Wipro Q2 Results 2023: IT company Wipro’s consolidated profit remained almost flat at Rs 2,667.3 crore in the second quarter ended September 30, the company said in a regulatory filing. The company had posted a profit after tax of Rs 2,649.1 crore a year ago.
Its consolidated revenue from operations declined marginally to Rs 22,515.9 crore in the reported period from Rs 22,539.7 crore it registered in the September 2022 quarter, according to the filing.
For the upcoming quarter, the company expects a revenue decline ranging from -3.5 percent to -1.5 percent.
The company also announced merger of its five subsidiaries into it.
In the regulatory filing, the company stated that the board of directors approved a scheme of amalgamation providing for the merger of the following wholly-owned subsidiaries with and into Wipro Limited (“Transferee Company”).
1) Wipro HR Services India Private Limited
2) Wipro Overseas IT Services Private Limited
3) Wipro Technology Product Services Private Limited (formerly known as Encore Theme
Technologies Private Limited)
4) Wipro Trademarks Holding Limited
5) Wipro VLSI Design Services India Private Limited (collectively “Transferor Company”)
Rationale for amalgamation/ merger;
1. To consolidate business operations.
2. To enable synergies of operations, reduction in overheads including administrative, managerial and other expenditure.
3. To ensure optimised legal entity structure.
4. To significantly reduce multiplicity of legal and regulatory compliances.
Since the Transferor Companies are wholly owned subsidiaries of the Transferee Company, no shares of the Transferee Company shall be allotted under the scheme of amalgamation in lieu or exchange of the shares of the Transferor Company.
Since there is no issue of shares, there will be no change in the shareholding pattern of the Transferee Company pursuant to the scheme of amalgamation.
Wipro Q1 Results
Last quarter, Wipro’s revenues declined 2.8 percent in constant currency terms, falling at the lower end of the company’s guidance for the quarter.
The IT services firm recorded a substantial year-on-year (YoY) surge of nearly 12 percent in its consolidated net profit for the quarter concluding in June, reaching Rs 2,870 crore. Additionally, the consolidated revenue experienced a 6 percent growth, reaching Rs 22,831 crore.
Wipro had then said its IT Services segment revenue rose 0.8 per cent YoY to $2,778.5 million. Revenue for the IT Services segment fell 2.8 per cent in constant currency (CC) terms in line with the earlier guidance.
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