Wipro Q1 Results: Net profit up 4.6% on-year to Rs 3,003 crore; guidance raised

Wipro declares Q1 FY25 results.

Wipro Ltd on 19 July reported its Q1 FY25 net profit rose 4.6 percent from a year ago to Rs 3,003 crore, beating market expectations. The IT company’s April-June consolidated revenue fell 3.8 percent to Rs 21,964 crore.

A Moneycontrol poll of brokerage estimates had pegged Wipro’s fiscal first quarter net profit to rise to Rs 2,953 crore, and revenue to fall to Rs 22,229 crore.

The company has guided sequential revenue growth in the range of -1 percent to 1 percent in constant currency (CC) terms. This comes after the company slashed the guidance last quarter in the range of -1.5 percent to 0.5 percent.

India’s top three IT companies are off to a robust start in Q1 FY25, marked by signs of recovery in discretionary spending and artificial intelligence (AI) deals picking up pace. To be sure, these companies highlighted that they are not yet fully out of the woods yet, and would require to watch out for a couple of quarters before calling it full recovery.

India's largest IT firm Tata Consultancy Services (TCS) Q1 results met expectations, with net profit rising 9 percent year-on-year to Rs 12,040 crore. Infosys beat expectations and raised its FY25 revenue growth guidance to 3-4 percent. HCL Technologies posted strong numbers with the net profit rising 20 percent to Rs 4,257 crore in Q1.

"We recorded another quarter of total large deal bookings over $1 billion, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors," said CEO Srini Pallia.

Wipro CFO Aparna Iyer said the firm expanded operating margin to 16.5 percent in the April-June quarter, up 42 basis points from the same quarter a year ago. "Our margin performance is also reflected in our EPS
increase of 10 percent YoY," she added.

The Bengaluru-based company won large deals worth $ 1.2 billion during the quarter, down 3.6 percent on-year. The company’s total deal wins stood at $ 3.3 billion, down 11.8 percent on-year in constant currency terms.

Wipro net added 337 employees during the quarter, reversing the trend of declining headcount after six quarters. This addition takes the total to 2,34,391 employees.

Wipro's attrition rate declined marginally to 14.1 percent sequentially, on a last-twelve-month (LTM) basis. In Q4, the attrition rate was 14.2 percent.

The topline grew by 4.9 percent year-on-year (YoY) an 1 percent quarter-on-quarter (QoQ) in CC terms.

The company's utilisation levels, excluding trainees, went up by 80 basis points (bps) to 87.7 percent in Q1 from 86.9 percent in the previous quarter.

IT companies have been increasing their utilisation levels at a time when hiring has largely been paused, as a result of tepid demand in recent quarters.

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