Wipro Q3 Results: Profit Rises 4%, Beats Estimates

IT major Wipro Ltd.'s revenue was flat at Rs 22,319 crore in the quarter ended Dec. 31, 2024, according to an exchange filing on Friday. That compares with the Rs 22,218-crore consensus estimate of analysts tracked by Bloomberg.

The company's net profit during the third quarter came in at Rs 3,354 crore, marking a sequential climb of 4%, as compared to the preceding quarter.

• Revenue up 0.1% at Rs 22,319 crore (estimate: Rs 22,218 crore).

• Net profit rose 4% to Rs 3,354 crore (estimate: Rs 3,057.40 crore).

• Ebit increased 5% to Rs 3,863 crore (estimate: Rs 3,628 crore).

• Margin at 17.3% (estimate: 16.33%).

Wipro has adjusted its guidance for the next quarter to a range of 1% decline to 1% growth in constant currency terms. It had previously guided a range of 2% decline to flat growth for the second quarter. Revenue from IT Services business segment is expected to be in the range of $2,602 million to $2,655 million, said the company.

Srini Pallia, chief executive officer and managing director at Wipro, said, “2024 was marked by macroeconomic challenges. We are more hopeful and resilient in 2025. Our clients are cautiously optimistic and we see discretionary spending slowly coming back. Capco continues to see improved demand. We saw steady growth across the Americas, while Europe and APMEA remain soft. Growth was led by health and tech and communications verticals."

Commenting on the demand environment outlook, the CEO said that discretionary spend in the BFSI vertical is coming back, and the company expects good spending on Generative AI by the clients going forward.

IT services operating margin for the quarter was at 17.5%, an increase of 0.7% quarter-on-quarter and1.5% year-on-year. Operating cash flows of Rs 4,930 crore, an increase of 3.0% year-on-year and at 146.5% of net Income for the quarter.

Aparna Iyer, chief financial officer, said, “We are seeing momentum in small- and medium-size deals. The pipeline for large deals remains strong and we remain optimistic. Seeing momentum in Americas I and II and Capco. As far as the new regime in the US is concerned, we believe it will be business friendly.”

The CFO added that Wipro achieved its aspirational target of 17.5% through consistent operational improvements over the last four quarters. Moving forward, the company will focus on further operational improvements, optimising overheads, maintaining utilisation, and boosting fixed-price productivity.

Total bookings came in at $3.5 billion, lower than $3,5.billion last quarter. Large deal bookings stood at $961 million, lower than $1489 million last quarter.

Employee headcount for the quarter was 2.32 lakh, a decrease of 1,157 employees. Voluntary attrition was at 15.3% on a trailing 12-month basis, higher than 14.5% recorded last quarter. The company will be adding 10000-12000 freshers in the next fiscal.

Saurabh Govil, Chief Human Resources Officer at Wipro, said, “The dip in headcount is dependent on demand and productivity; as we look into the coming quarter, this will be ironed out as it was a seasonal effect.” Commenting on the change in H1B visa rules, he noted that the company has invested in hiring a large number of locals in the US and a significant portion of its employee base is locals.