1:1 Bonus Shares: This Indian IT Company and Ericsson Drive Cloud-Native Billing Transformation for Odido's 5 Million Mobile Customers

5 million customers have been flawlessly migrated to the cloud-native Ericsson Billing, hosted on AWS, in one weekend.

Ericsson and Wipro have successfully transformed the billing experience for Odido brand mobile customers in the Netherlands by migrating to a cloud-native Ericsson Billing platform, hosted on Amazon Web Services (AWS). This transition, completed in August 2024, enabled Odido to enhance its 5G service offerings, including the recently launched Klik&Klaar fixed-wireless access (FWA) solution while improving operational efficiency and customer satisfaction. The migration was a major milestone, transferring 5 million customers over a weekend. It follows the earlier successful transition of 700,000 Ben MVNO users in November 2023. Now, all of Odido’s mobile customers, both B2B and B2C, are supported by the Ericsson Billing platform on AWS.

Wipro was pivotal as the end-to-end system integrator, collaborating closely with Ericsson and Odido to design and implement the solution. The integration simplifies Odido’s IT landscape, reduces technical debt, streamlines the customer experience, and lowers operating costs.

Furthermore, India’s fourth-largest IT company, Wipro Ltd has announced the issuance of bonus shares recently. This announcement was made alongside the release of the company's second-quarter financial performance for FY25.

Bonus Issue

As per the press release, the Board of Directors of Wipro Ltd has approved and recommended a bonus issue of equity shares to shareholders, subject to their approval via postal ballot. The proposed bonus shares will be in the proportion of 1:1, meaning shareholders will receive 1 bonus equity share of Rs 2 for every 1 fully paid-up equity share they hold.

Additionally, a stock dividend will be issued to holders of American Depositary Shares (ADS) in the ratio of 1 ADS for every 1 ADS held. The record date for determining eligible shareholders and ADS holders for the bonus shares will be announced later.

Quarterly Performance

For the quarter ending September 30, 2024, Wipro reported gross revenue of Rs 223.0 billion (USD 2,662.6 million), reflecting a 1.5 per cent increase quarter-on-quarter (QoQ) but a 1.0 per cent decrease year-on-year (YoY).

The IT services segment revenue stood at USD 2,660.1 million, up 1.3 per cent QoQ and down 2.0 per cent YoY. On a non-GAAP basis, the constant currency revenue for the IT services segment saw a 0.6 per cent QoQ increase and a 2.3 per cent YoY decline.

The IT services operating margin for the quarter was 16.8 per cent, an increase of 0.3 per cent QoQ and 0.7 per cent YoY. Net income for the quarter was reported at Rs 32.1 billion (USD 383.1 million), marking a 6.8 per cent increase QoQ and a 21.3 per cent increase YoY. Earnings per share reached Rs 6.14 (USD 0.071), also up 6.8 per cent QoQ and 21.3 per cent YoY. Operating cash flows amounted to Rs 42.7 billion (USD 509.7 million), reflecting a 10.5 per cent YoY increase and representing 132.3 per cent of the net income for the quarter.

Deal Wins and Attrition Rate

Total bookings reached USD 3,561 million, with large deal bookings amounting to USD 1,489 million, representing a substantial 28.8 per cent QoQ increase and a 16.8 per cent YoY rise in constant currency. The voluntary attrition rate stood at 14.5 per cent on a trailing 12-month basis.

Outlook for the Q3 FY25

For the quarter ending December 31, 2024, Wipro anticipates that revenue from its IT services business segment will range between USD 2,607 million and USD 2,660 million. This outlook translates to sequential guidance of a decrease of 2.0 per cent to no change (0.0 per cent) in constant currency terms. The forecast is based on the following exchange rates: GBP/USD at 1.32, Euro/USD at 1.10, AUD/USD at 0.68, USD/INR at 83.65, and CAD/USD at 0.74.

Share Performance

Currenrtly, the shares of Wipro Ltd are at around Rs 551.60 each on the BSE. The company's current market capitalization stands at Rs 2.89 lakh crore. Additionally, the company’s shares have delivered around 50 per cent return in the past 1 year.

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Disclaimer: The article is for informational purposes only and not investment advice.