Wipro registers 24.5% rise in Q3 net profit, revenue growth mostly flat

Wipro, one of the leading Indian IT services companies registered a 24.5% rise in net profit for the October to December quarter of 2024-25 fiscal and expressed optimism about early signs in revival of business demand.

Wipro reported a net profit of Rs 3,354 for the third quarter of FY25, driven largely by cost optimisation measures. However, the revenue growth of the company remained almost flat, showing just 0.5% annual growth in the quarter. The revenue for the period was Rs 22,319 crore.

On the third quarter performance of the company, Wipro CEO Srini Pallia said “In a seasonally weak quarter, our strong in quarter execution helped us deliver above the top end of our revenue guidance.”

At the same time, Pallia remarked that there were early signs that discretionary spending on technology is slowly coming back. Discretionary spending refers to those extra investments which go beyond just maintenance of technology systems. Though he said, “We are cautiously optimistic about 2025.”

Wipro said the total bookings at the end of third quarter was $3.5 billion and large deals booking stood at $1 billion.

For the fourth quarter of the fiscal, Wipro has guided its revenue growth to be in the range of minus one percent to plus one percent.

The key highlight for Wipro in the third quarter has been the improvement in the operating profit margins, which came in at 17.5%, which was a 1.5% year-on-year growth. This is the highest level that the company has achieved over the last three years.

Wipro Chief Financial Officer Aparna Iyer said, “We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5%.”

The financial numbers of Wipro in comparison with its peers like TCS, Infosys and HCLTech has been tepid. TCS saw its revenues rising by 5.6% while it was 7.6% in the case of Infosys. Although, it scored higher on the profitability front.

Wipro's performance across geographies and business verticals has been mixed in the third quarter of the fiscal. It saw 3.4% YoY growth in the financial services segment but witnessed a fall in other segments like manufacturing and communications. From a geography perspective, the North America segment remained steady while there was decline in Europe and Asia-Pacific, Middle East and Africa region.

At the same time Wipro saw its employee headcount declining by 1,157 for the third quarter of the fiscal. The employee number now stands at 232,732.

The company said it has been judicious in its hiring policy but will continue with the intake of freshers. It expects to hire around 10,000-12,000 freshers in the forthcoming fiscal year.