Infosys Ltd and Wipro Ltd Q2 Results for September 2021

5paisa Research Team 11th December 2022 - 09:29 pm

Infosys Ltd – Q2 Results (Sep-21)

For the Sep-21 quarter, Infosys reported 20.48% growth in total revenues Rs.29,602 crore. Revenues were sequentially higher by just about 6.12%. Net profits for the quarter were up 11.9% YoY at Rs.5,421 crore while sequentially the profits were up by a moderate 4.35%.

	Infosys Ltd
Rs in Crore	Sep-21	Sep-20	YOY	Jun-21	QOQ
Total Income (Rs cr)	₹ 29,602	₹ 24,570	20.48%	₹ 27,896	6.12%
Operating Profit (Rs cr)	₹ 6,972	₹ 6,228	11.95%	₹ 6,603	5.59%
Net Profit (Rs cr)	₹ 5,421	₹ 4,845	11.89%	₹ 5,195	4.35%

Diluted EPS (Rs)	₹ 12.85	₹ 11.40		₹ 12.21
OPM	23.55%	25.35%		23.67%
Net Margins	18.31%	19.72%		18.62%

The big story was that the heavyweight regions also grew the fastest. North America makes up 62% of revenues and grew at 23.1% while Europe makes up 24% of revenues and grew 22.8%. The big story was the focus on digital revenues. Total digital revenues for the quarter grew by 42.4% YoY in constant currency terms while the share of digital in total revenues went up from 47% to 56.1% on a YoY basis. Manufacturing, Life Sciences and BFSI were the top growth verticals for Infosys.

Finally, on the guidance front, Infosys raised its revenue growth guidance from the range of 14-16% to a higher range of 16.5-17.5%. Operating margin guidance has been maintained at 22-24% range. For the quarter, Infosys reported OPM of 23.6% and new deals of $2.15 bn.

Check - Infosys AGM 2021

Wipro Ltd – Q2 Results (Sep-21)

For the Sep-21 quarter, Wipro reported 30.29% growth in revenues at Rs.19,669 crore. Revenues were sequentially up by just about 6.51%. For Sep-21 quarter, net profits were up 18.9% YoY at Rs.2,931 crore but profits fell -9.77% on sequential basis.

Among major growth areas, the North American region which accounts for over 60% of revenues grew by 25% YoY. The European operation accounting for 30% revenues grew by a whopping 50% YoY. The growth in the APMEA region was more subdued at around 10%, but it is much smaller in relative size.

	Wipro Ltd
Rs in Crore	Sep-21	Sep-20	YOY	Jun-21	QOQ
Total Income (Rs cr)	₹ 19,669	₹ 15,097	30.29%	₹ 18,467	6.51%
Operating Profit (Rs cr)	₹ 3,398	₹ 2,779	22.25%	₹ 3,370	0.82%
Net Profit (Rs cr)	₹ 2,931	₹ 2,466	18.86%	₹ 3,248	-9.77%

Diluted EPS (Rs)	₹ 5.35	₹ 4.32		₹ 5.92
OPM	17.27%	18.41%		18.25%
Net Margins	14.90%	16.33%		17.59%

Guidance for Wipro is more subdued. Wipro is expecting revenue growth of just about 2-4% and operating margins to hover around 17-18%. The only area of concern, apart from the sequential fall in profits for Wipro will be the sharp spike in the attrition rate to above 20.5%.

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