Wipro Ltd reported a 4.5 percent quarter-on-quarter increase in consolidated net profit to Rs 3,354 crore for the quarter ended December 31, 2024, surpassing analysts’ expectations. The IT major's Q3 FY25 revenue remained flat at Rs 22,319 crore, growing 0.1 percent sequentially.
Analysts polled by Moneycontrol had estimated the company’s net profit to decline by 5 percent quarter-on-quarter to Rs 3,040 crore and revenue to dip by 0.6 percent to Rs 22,176 crore.
Wipro declared an interim dividend of Rs 6 per share and revised its capital allocation policy to commit at least 70 percent of net income as payouts over a three-year period.
"The discretionary spend continues to build up... but it's in certain industry segments, especially like BFSI (banking, financial services, and insurance), which is also reflecting in our capital growth," Srinivas Pallia, CEO and Managing Director, told the Press after declaring Q3FY25 results.
Operating margin improved to 17.5 percent, the highest in three years, driven by operational efficiencies and cost optimisation. Wipro's voluntary attrition rate also declined to 15.3 percent on a trailing 12-month basis, reflecting improved employee retention.
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The IT services revenue for the quarter declined 1.2 percent sequentially to $2.63 billion. However, in constant currency terms, it grew 0.1 percent quarter-on-quarter, aligning with the upper end of the company’s guidance.
Wipro’s total bookings for the quarter stood at $3.5 billion, while large deal bookings rose 6 percent year-on-year to $961 million. The company highlighted its strong cash generation, with operating cash flow reaching Rs 4,931 crore, which was 146.5 percent of net income.
"We won a vendor consolidation deal with a leading American retail and distribution company. As a strategic partner, we will transform their merchandising, sales, and supply chain function," Pallia added.
Looking ahead, Wipro projected IT services revenue for the March quarter (Q4FY25) to be in the range of (-) 1 percent to 1 percent in constant currency terms.
Pallia said that the company’s strong in-quarter execution allowed it to surpass revenue guidance in a seasonally weak quarter. He added that Wipro achieved its highest margins in three years while continuing to invest in its workforce and innovation.
Wipro CFO Aparna Iyer said the company’s margin expanded for the fourth consecutive quarter, with strong earnings per share growth, and robust cash generation. "This was accomplished after investing in our people, absorbing two additional months of salary increase. As we move into Q4, we are confident of holding the operating margins in a narrow band," Iyer added.
Wipro secured 17 large deals in the quarter, with a total contract value of $1 billion. These included significant wins across industries such as healthcare, financial services, media, and telecommunications.
One major deal involved partnering with a US-based health insurer to implement AI-powered platforms aimed at improving operational efficiency and customer experience. Another notable win saw Wipro transform the core banking system of an Indian private bank, leveraging its expertise to build a scalable digital platform.
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