Q3 Results Highlights: 50,000 employees certified in AI, focused on Agentic AI and education, says Wipro CEO

Wipro CHRO Saurabh Govil addressed the company's headcount reduction, attributing it to seasonality and expecting it to stabilise in the future. "Headcount reduction is more a play of seasonality, and will get ironed out going forward," Govil said. He also stressed on the company's readiness for both nearshore and offshore headcount needs. "We’re fully geared up for our nearshore and offshore headcount," he added.

On workplace dynamics, Govil noted that about 80% of employees have returned to the office three days a week. "As that happens, issues of moonlighting will be sorted," he said.

Looking ahead to 2025, Govil expressed a cautious optimism, stating, "I see 2025 as cautiously optimistic." He also reaffirmed Wipro's focus on maintaining margins. "We will continue to pull all levers to keep margins within a tight range," he concluded.

Rallis India net profit decreased by 54.2% to Rs 11 crore, compared to Rs 24 crore YoY. Revenue declined by 12.7% to Rs 522 crore, down from Rs 589 crore YoY. EBITDA dropped by 29% to Rs 44 crore, compared to Rs 62 crore YoY. Margin stood at 8.4%, compared to 10.4% YoY.

Tech Mahindra CEO and MD Mohit Joshi marked the completion of his first year in the role, noting the impact of steep currency movements on the company’s reported revenue numbers. "The steep currency movements through the quarter impacted reported revenue numbers," Joshi said.

He reaffirmed the company’s focus on maintaining leadership in the communications vertical while exploring new opportunities. "We are committed to our leadership in the communications vertical while we look for newer opportunities," he added.

Joshi also highlighted the company’s success in expanding its client base, revealing that Tech Mahindra onboarded over 40 new clients in key accounts, with 12 added in the December quarter. "We got 6 large deals from these clients recently," he shared.

Wipro CEO Srinivas Pallia highlighted the company’s strong growth in its AI-led consulting business, emphasizing its commitment to investing in AI education. "We have made good growth in our AI-led consulting business. We will continue to invest in AI education, and 50,000 of our employees now hold advanced AI certification," Pallia said.

Wipro, an early adopter of Agentic AI, which goes beyond traditional productivity practices, has also focused on upskilling its leadership. "In FY25, Wipro Institute trained over 600 leaders in AI," he added.

Pallia noted that discretionary spending is on the rise in the Americas, while European customers are prioritizing cost optimization. "January is when most clients start their budget cycle," he said, observing a strong interest in generative AI from early client budgets. However, Pallia clarified that Wipro does not intend to build large language models (LLMs) or specialized language models (SLMs) as part of its strategy.

Net profit increased by 32.6% to Rs 632.5 crore, compared to Rs 476.9 crore YoY. Revenue grew by 29% to Rs 2,533 crore, up from Rs 1,963.8 crore YoY. EBITDA rose by 31.4% to Rs 962.6 crore, compared to Rs 732.4 crore YoY. Margin improved to 38%, from 37.3% YoY.

Wipro has revised its capital allocation policy and will increase the payout percentage from 45-50% to 70% or more of its three-year profit.

IT services revenue is expected to range between $2,602 million and $2,655 million, with constant currency QoQ revenue growth projected between -1% and +1%.

Tech Mahindra's net profit for Q3 FY25 declined 21.4% sequentially to Rs 983 crore from Rs 1,250 crore in the previous quarter. Rupee revenue was nearly flat, down 0.2% at Rs 13,286 crore compared to Rs 13,313.2 crore. EBIT grew by 5.4% to Rs 1,350 crore from Rs 1,280.4 crore, with margins improving to 10.2% from 9.6% quarter-on-quarter.

Tech Mahindra reported a net profit of Rs 983 crore for Q3 FY25. The company's constant currency revenue growth stood at 1.2%, with rupee revenue at Rs 13,286 crore and dollar revenue at $1,567 million.

Wipro reported a 0.4% sequential growth in rupee revenue for Q3 FY25 at Rs 22,285 crore, compared to Rs 22,196 crore in the previous quarter. EBIT increased by 4.5% to Rs 3,899 crore from Rs 3,732 crore, with margins improving to 17.5% from 16.8%. The company also declared an interim dividend of Rs 6 per share.

Tech Mahindra is scheduled to announce its Q3 earnings for FY25 on January 17. Analysts anticipate a sequential decline in net profit due to a high base from the previous quarter and weak seasonality affecting certain segments.

Sterlite Technologies posted a 22% growth in EBITDA for Q3 FY25 at Rs 133 crore, up from Rs 109 crore in the same period last year. The EBITDA margin also improved significantly to 10.5%, compared to 8.2% year-on-year.

Sterlite Technologies reported a net loss of Rs 24 crore for Q3 FY25, a significant improvement compared to a loss of Rs 59 crore in the same period last year. The company's revenue declined by 4.6% year-on-year, standing at Rs 1,261 crore compared to RS 1,322 crore in the previous year.

Wage hikes and cross currency issues to influence operating margins

The full impact of Wipro's September wage hike will be felt in Q3, with analysts divided on its effect on operating margins. Some firms expect a minor dip, while others predict stable margins due to favorable currency movements and strict cost management.

SBI Life Insurance has announced its Q3 results with a total Annualised Premium Equivalent (APE) increase by 13.2% to Rs 6,940 crore in the October-December 2024 period, compared to Rs 6,130 crore in the same quarter last year.

In addition, the Value of New Business (VNB) saw an 11.3% growth, reaching Rs 1,870 crore, up from Rs 1,680 crore in Q3 FY24.

Revenue to decline by 0.6% to Rs 22,176 crore; net profit likely to fall 5%

A Moneycontrol poll of nine brokerages forecasts Wipro’s revenue for the October-December quarter to decline by 0.6% to Rs 22,176 crore, down from Rs 22,302 crore in the previous quarter. Analysts also predict a 5% drop in net profit, with an expected figure of Rs 3,040 crore compared to Rs 3,209 crore in the preceding quarter. The company’s EBIT margin is likely to contract by 40 basis points to 16.1%.

Analysts highlight that Wipro’s consulting business faces seasonal weakness, while client-specific issues in its Banking & Financial Services (BFS) and Healthcare verticals are expected to continue affecting growth. Additionally, cross-currency headwinds are anticipated to further dampen the company’s earnings in constant currency terms.

Shares of Swaraj Engines are currently trading nearly 4% higher at Rs 3,156.60. This comes after the company reported a net profit of Rs 31.95 crore in Q3 FY 25, marking a 33% increase from Q3 FY 24.

• Net Profit rises 60% YoY to Rs 160.84 crore
• Revenue jumps 42% YoY to Rs 257 crore
• Earnings per share (EPS) at Rs 19.29

• Net profit rises 33% YoY to Rs 31.95 crore, down 30% QoQ
• Revenue jumps 24% YoY to Rs 345.50 crore
• Earnings per share (EPS) at Rs 26.30

• Net profit jumps 149% YoY to Rs 43.39 crore
• Revenue from operations rises 41% YoY to Rs 219.68 crore
• Earnings per share (EPS) at Rs 3.27

Shares of SBI Life jumped around 1.05% to trade at Rs 1,529 on January 17. The firm is set to announce its Q3 results today.

According to a Moneycontrol poll of nine brokerages, SBI Life’s Q3 FY25 APE is expected to grow 6.5 percent on-year to Rs 6,530 crore. VNB is likely to grow 3.3 percent on-year to Rs 1,681 crore, but VNB margin is estimated to contract by 90 basis points from a year ago to 26.5 percent. Net profit for the quarter is expected to range between Rs 400-500 crore. (Read more)

Over 40 companies are set to announce their Q3 results today. The notable names among them are Wipro, Tech Mahindra, Jio Financial Services, ICICI Lombard, SBI Life, 5Paisa and Aether Industries. Notably, newly listed Mamata Machinery will also release its first quarterly results are becoming a publicly listed company.

Shares of ICICI Lombard General Insurance Company Ltd jumped around 1.88% to trade at Rs 1,943.95 on January 17. The firm is set to announce its Q3 results today.

Shares of Wipro are currently down over 1% and are trading at Rs 285.05. The IT firm is set to announce its Q3 results today.

Shares of Jio Financial Services are currently trading 0.74% higher at Rs 278.80. The firm is set to announce its Q3 results today.

• Seasonality effect: Brokerage firm PL Capital believes that Tech Mahindra's Q3 revenue will be impacted by furloughs and weakness in manufacturing segment, which will mitigated partially by positive seasonality in Comviva business.
• Margin improvement: Margins are likely to deliver sequential growth due to benefits of the company's cost optimisation program, Project Fortius.
• Deal wins: Most brokerages anticipate deal wins for Tech Mahindra to be higher in Q3 than Q2. KIE forecasts net new deal wins of $700 million. (Read more)

According to a Moneycontrol poll of nine brokerages, Tech Mahindra is expected to post a 0.3% increase in revenue to Rs 13,355 crore. Among the brokerages polled, Kotak Institutional Equities sees the lowest fall in net profit at nearly 10%, while BOBCAPS predicts the sharpest fall at nearly 23%.

IT major Tech Mahindra is set to announced its results for the October-December quarter today. Analysts have predicted a sequential fall of 16% in net profit and muted revenue growth due to weak seasonality for select segments. EBIT margin is likely to grow by 40 basis points on quarter to 10% as per the estimates.

• With the Street's consensus indicating that Wipro's revenue growth will remain within its previously guided range, all eyes will be on the IT giant’s topline guidance for Q4. Analysts at HDFC Securities expect Wipro to provide a sequential revenue growth guidance of -1% to +1% in constant currency (CC) terms for Q4. However, KIE and Emkay Global have slightly different expectations, forecasting growth guidance in the range of -0.5% to +1.5% for Q3.
• Additionally, attention will be on the company's commentary regarding the discretionary demand environment and budget indicators for CY25. Investors will also be keen to hear details on Wipro's capital allocation plans, especially since the company’s net cash has surpassed ₹30,000 crore, with the new CEO focusing on organic growth. (Read More)

Analysts also forecast a 5% decline in consolidated net profit, with expectations of Rs 3,040 crore for the quarter, down from Rs 3,209 crore in the previous quarter.

A Moneycontrol poll of nine brokerages predicts Wipro's revenue will decline by 0.6% to ₹22,176 crore for the October-December period, compared to Rs 22,302 crore in the previous quarter.

Wipro Ltd is scheduled to announce its Q3 FY25 earnings today, with analysts expecting a decline in both revenue and net profit for the quarter. Factors such as seasonal weakness in its consulting business, higher furloughs, and cross-currency challenges in Q3 are likely to affect Wipro's earnings growth in constant currency (CC) terms.