Information technology (IT) major Wipro has guided revenue in the range of -1 percent to +1 percent for the fourth quarter of financial year 2025 ending December 31, 2024 (Q4FY25). This is a positive since both the upper and lower end of the guidance have been increased.
For Q2Fy25, the sequential guidance was in the range of -2.0 percent to 0.0 percent in constant currency terms.
Chief Financial Officer Aparna Iyer said the company sees good momentum in the American region and in the capital business. "We continue to see some of that play out, even into Q4. But there is also softness in Europe and APMEA (Asia Pacific, Middle East, and Africa), which is also baked into this guidance. And we also have lower working days because of the holiday calendar that we announced," Iyer said listing out the reasons for the said revenue guidance.
In April, the company revised its revenue guidance to (-) 1.5 percent to 0.5 percent, the company said in a release on July 19.
“Based on strong execution in Q2, we met our expectations for revenue growth, bookings, and margins. We continued to expand our top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, Consumer and Technology and Communications sectors. We will continue to invest in our clients, our strategic priorities, and building a strong AI-powered Wipro,” said Chief Executive Officer Srinivas Pallia.
Total bookings stood at $3.51 billion, with large deal bookings of $961 million, lower than $3.56 billion and $1.49 billion in the last quarter, respectively.
Pallia added that the company is seeing discretionary spending getting better in the smaller to mid-sized deals. "I think that will continue, which could be across AI, data, and cloud because some of the clients want to completely move into cloud. Some of them are struggling with the data because enterprises, you don't get the right data," Pallia further said.
Meanwhile, the company reported 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.
Operating margin improved to 17.5 percent, the highest in three years, driven by operational efficiencies and cost optimisation.
On the employee metrics, attrition this quarter moderated further to 15.3 percent from 14.5 percent last quarter. Headcount in Q3 reduced by 1,157 employees to 2,32,732 this quarter.
Also, read: Wipro ADRs surge 4% after Q3 earnings beat, multi-year high margins
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