Infosys Ltd and Wipro Ltd Q2 Results for September 2021

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%.
 

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.
 

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%.