Wipro, the fourth-largest IT services company, reported a slight decrease in its second-quarter net profit and revenue, citing economic uncertainties and reduced discretionary spending by clients. The company’s net profit saw a 0.47% year-on-year drop to Rs 2,646.3 crore, and its quarterly revenue declined by 0.1% to Rs 22,516 crore. Wipro’s operating margin for the quarter stood at 16.1%. The company anticipates a decline in revenue from its IT services business segment for the upcoming third quarter, attributing this to economic uncertainties and slower order processing. However, Wipro is experiencing growth in generative AI projects and is integrating AI into various aspects of its operations, such as marketing and HR functions. Additionally, the company announced the approval of the merger of five units with itself and is also reducing its headcount. Wipro plans to pay 80% variable pay to employees.
Wipro’s Q2 Net Profit and Revenue Dip Amid Economic Weakness
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