
Wipro Q2 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Management growth scorecard
Revenue
N/A
Margin
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Fundraise
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Order
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Capex
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0 of 0 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
- Growth has slowed recently due to macroeconomic instability, cautious client spending, and lower discretionary spend.
- Europe and the US have seen some decline in revenues but pipelines remain strong, especially in Europe, with expectations of a rapid rebound.
- Large deal wins and total contract value (TCV) are growing, indicating stronger future revenue potential.
- The focus is on higher-value transformation projects, cost optimization deals, and expanding major client relationships, particularly in large accounts ($100M+).
- The market is currently not in a growth phase, but the company is confident that as market conditions improve, they will return to growth.
- Guidance beyond the current quarter is not provided, reflecting cautious optimism.
- Investments in talent, AI, cloud, and operational efficiencies position the company well for growth when demand rebounds.
See what Wipro management said on margin guidance — free account, 30 seconds.
Fundraise plans
See what Wipro management said on order book — free account, 30 seconds.
Capex plans
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Margin guidance
- Wipro expects a challenging Q3 with pressure on margins due to wage hikes and slower growth but aims to keep margins range-bound (Page 15).
- No guidance beyond Q3 is provided; management remains cautious about near-term growth outlook (Page 14).
- The company anticipates a rebound in growth but did not specify timing, indicating potential improvement from Q4 or next fiscal year (Page 14).
- Q3 guidance expects a sequential revenue decline of -3.5% to -1.5% in constant currency (Page 8).
- Despite top-line softness, operating margins expanded by 100 basis points year-on-year in H1 FY24 and remained steady around 16.1% (Page 8, 5).
- Strong deal bookings, increasing large deal wins, and strategic focus on high-value clients and efficiency drive confidence in medium-term growth recovery (Pages 9, 5, 10).
- EPS grew 4.1% YoY in Q2, supported by operational efficiencies and margin discipline (Page 8).
Order book
- Wipro reported strong deal booking with a total contract value (TCV) of $3.8 billion in Q2, up 6% year-on-year.
- Closed 14 large deals greater than $30 million in TCV during the quarter.
- Large deals reached $1.3 billion in Q2, a 79% year-on-year growth and 6% quarter-on-quarter growth.
- Added one new account in the $100 million+ category in Q2, bringing the total to 22 such accounts (doubled since FY21).
- There is a backlog of deals "in the waiting room," ready for launch, especially in financial services.
- Strong pipeline and increasing proportion of large, strategic deals underpin backlog growth.
- While orders are strong, conversion to revenue is cautious due to lower discretionary spend and economic cautiousness.
- Bookings through partners increased to 53% in Q2, aiding deal growth.
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What Wipro's management said in earlier quarters
- Q1 FY27 earnings call analysis →
- Q4 FY25 earnings call analysis →
- Q3 FY26 earnings call analysis →
- Q4 FY26 earnings call analysis →
- Q2 FY26 earnings call →
- Q1 FY26 earnings call →
- Q3 FY25 earnings call →
- Q2 FY25 earnings call →
- Q1 FY25 earnings call →
- Q4 FY24 earnings call →
- Q3 FY24 earnings call →
- Q2 FY24 earnings call →
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