Wipro Reports Impressive Q4 Results with Significant Profit Growth
In a remarkable financial performance, Wipro, a leading player in the IT sector, announced a substantial 26% year-on-year increase in its consolidated net profit, reaching ₹3,569.6 crore for the March quarter of FY25. While the consolidated revenue from operations remained nearly unchanged at ₹22,504.20 crore, the company’s operating margins saw a notable expansion of 110 basis points compared to the previous year.
Strong Performance and Client Satisfaction
Srini Pallia, Wipro’s CEO and Managing Director, expressed optimism about the company’s achievements, stating, “We concluded FY25 with significant deal wins and an uptick in large deal bookings, alongside growth in our key accounts. Client satisfaction metrics have shown improvement, reflecting our commitment to strong execution and engagement.”
Pallia emphasized the company’s ongoing investments in global talent and the enhancement of its consulting and AI capabilities. As clients navigate a landscape of macroeconomic uncertainty, Wipro is dedicated to fostering close partnerships while maintaining a focus on consistent and profitable growth.
Key Financial Highlights from Q4
- Profit Growth: Wipro’s consolidated profit surged 25.93% YoY, climbing from ₹2,834.60 crore in the same quarter last year.
- Revenue Stability: The company’s consolidated revenue from operations saw a slight increase of 1.33%, up from ₹22,208.30 crore YoY.
- IT Services Segment: Revenue from IT services was reported at $2,596.5 million, reflecting a 1.2% decline QoQ and 2.3% YoY.
- Operating Margins: The margin for Q4 stood at 17.5%, an increase of 1.1% YoY.
- Earnings Per Share: EPS for the quarter rose by 6.2% QoQ and 25.8% YoY, amounting to ₹3.4.
Anticipated Outlook for Q1FY26
Looking ahead, Wipro forecasts a potential decline in its IT services revenue for Q1FY26, estimating a decrease of between 1.5% and 3.5% compared to the previous quarter, after accounting for currency fluctuations. The company indicated that revenue from its IT services segment is expected to be between $2,505 million and $2,557 million, translating to a sequential guidance of (-)3.5% to (-)1.5% in constant currency terms.
Final Dividend Announcement
In addition to its strong financial results, Wipro declared a final dividend of ₹6 for the last financial year (FY25), reflecting its commitment to returning value to shareholders.
Workforce and Deal Wins
As of the end of the March quarter, Wipro’s total headcount reached 233,346, with a voluntary attrition rate of 15% over the trailing twelve months. The company reported total bookings of $3,955 million for the quarter, showing a robust 13.4% increase QoQ in constant currency. Notably, large deal bookings were impressive at $1,763 million, marking a 48.5% YoY increase in constant currency.
In summary, Wipro’s Q4 results highlight a blend of profit growth and strategic investments amid economic challenges, positioning the company for continued success in the competitive IT landscape.