Wipro net profit up 4.6% in Q1, offers higher revenue guidance
Wipro beat market expectations on profitability but the revenues saw a 3.8% YoY decline.
Leading Indian IT services exporter Wipro reported a 4.6% year-on-year (YoY) rise in net profit for the first quarter of FY25, beating market expectations and marginally improving the revenue guidance for the fiscal year.
The net profit for the first quarter stood at Rs 3,003 crore. However, the revenues declined by 3.8% YoY to touch Rs 21,964 crore.
Wipro provided revenue guidance in the range of $2,600 million to $2,652 million for the second quarter of the fiscal year, which translates into a growth of -1% to 1%. This guidance is an improvement over its previous guidance of -1.5% to 0.5%.
On the performance of the company, Wipro CEO Srini Pallia said, “We did not see a significant shift in demand as clients remained cautious while discretionary spending continues to remain muted.”
Wipro said the large deal booking stood at $1.2 billion, which was a dip of 3.6% YoY. Its operating profit margins were at 16.5% for the first quarter—a 0.5% improvement compared with a similar period a year ago.
In fact in the first quarter for Wipro, the majority of the geographies like Americas, Europe and Asia-Pacific saw declining growth on a YoY basis. Similarly, all the business verticals like BFSI, energy, and communication saw a dip in growth rate except for the healthcare segment.
However, the CEO remained confident about the growth ahead with a robust deal pipeline. “We believe Wipro is in a better position than the first quarter,” Pallia remarked.
The employee headcount numbers at the end of the first quarter stood at 234,391, which was an addition of 337 compared to the previous quarter. However, when compared to a year ago, there is a decline of 15,367 employees.
Wipro said it plans to hire about 10,000-12,000 freshers during the current fiscal year.
On a comparative note, Wipro continues to underperform when compared to its peers—Tata Consultancy Services (TCS) and Infosys. TCS registered an 8.7% rise in net profit and 5.4% in revenues. In the case of Infosys, the net profit grew by 7.1% while revenue grew by 3.6%.
Edited by Kanishk Singh