India's Wipro beats second-quarter revenue expectations, deal bookings drop

BENGALURU, Oct 15 — Wipro, India's fourth-largest IT company, reported higher-than-expected second-quarter revenue ​on Thursday, helped by a revival in spending by its European clients and artificial intelligence unlocking new ‌revenue streams.

The company's consolidated revenue rose 9.1% to 247.53 billion rupees ($2.60 billion) in the ⁠July-September quarter, a tad ​above analysts' average estimate of ⁠246.27 billion rupees, as per LSEG data.

Bengaluru-based Wipro forecast ‌third-quarter revenue of $2.57 ‌billion to $2.63 billion-- which translates to a drop of ⁠1.5% to an increase of ⁠0.5%. Most brokerages had expected a guidance between 2% decline and flat revenue growth.

Wipro said revenue from Europe, which contributes more than a fourth of its overall business, rose 5.1% year-over-year, after stripping out currency fluctuations. ‌The company also signed partnerships with ​Anthropic and Google during the year, helping it gain traction in terms of AI-related revenue and savings.

The company posted a net profit of 32.01 billion rupees, compared with analysts' estimates of 33.69 billion rupees.

Total deal wins for Wipro fell to $2.6 billion from $4.7 billion a year earlier. ​It inked pacts with industrial giant ABB, cybersecurity firm Crowdstrike ‌and oil major ‌Aramco ⁠during the quarter ended September 30.

Larger rivals TCS and HCLTech revenue figures were largely in-line with Street estimates but their stocks surged as investors welcomed the uptick in AI revenue.

The ‌company's Mumbai-listed shares closed ​1.4% higher ahead of the ‌results, with the Nifty ⁠IT ​index rising 1.7%.

($1 = 95.0550 Indian rupees)

(Reporting by Sai Ishwarbharath B; Editing by ​Jochelle Mendonca)

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