Wipro Q4 results: Net profit falls 8% to Rs 2,835 crore, beats estimates

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26 Aug, 2025 12:21

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Wipro Ltd said net profit fell 8 percent to Rs 2,835 crore for the fiscal fourth quarter, beating estimates. The company reported a profit of  Rs 3,074.5 crore in the year-ago period.

The software services company's revenue fell to Rs 22,208.3 crore in the three months ended March 31, according to an exchange filing on April 19. It reported consolidated revenue of Rs 23,190.3 crore in the year-ago period.

Wipro beat both bottomline and topline analyst estimates of Rs 2,748 crore on Rs 22,117 crore, respectively.

IT services segment revenue was at $2.66 billion, an increase of 0.1% sequentially and a decrease of 6.4 percent from a year earlier.

For the quarter ending June 30, the company has guided for a sequential revenue of (-) 1.5 percent to 0.5 percent in constant currency terms.

In Q4, sequential revenue declined by 0.3 percent, in constant currency terms. While the metric declined by 6.6 percent year-on-year, in constant currency terms.

Srinivas Pallia, the new CEO and managing director, said FY24 proved to be a challenging year for our industry, and the macroeconomic environment remains uncertain. "However, I am optimistic about the opportunities that lie ahead."

Pallia further said the company is on the brink of a major technological shift. "Artificial intelligence is transforming our clients’ needs as they seek to harness its power for competitive advantage and enhanced business value."

This is the first time that Wipro is reporting under its new chief executive officer Srinivas Pallia. On April 6, the then-CEO Thierry Delaporte abruptly resigned, paving the way for Pallia to helm the top role.

Delaporte resigned a year earlier than his scheduled term, after reports that promoters were unhappy with his performance and that he might not get an extension for his tenure next year.

Pallia said Wipro has been gearing up for this moment. "We have the capabilities, leadership, and the strength of over 2,30,000 Wiproites around the world to help us realize our goals. Although there’s a considerable amount of work ahead of us, I am confident that together, with our collective effort, we can pave the way for the next chapter of growth.”

Aparna Iyer, Chief Financial Officer, said: “Despite a challenging macro-environment our IT services margin expanded by 50 basis points (to 16.1 percent) for the full year FY24.”

For Q4, the EBIT margin or the operating margin was marginally up 10 bps from the year-ago period to 16.4 percent.

For the full year of FY24, revenue declined YoY to Rs 89,760 crore from Rs 90,486 crore. Net profit for the year was at Rs 11,045 crore. Operating margin for the year was 16.1 percent.

Attrition in the fourth quarter decreased by 520 basis points (bps) to 14.2 percent on a trailing 12-month basis. Wipro reported a decline of 6,180 employees in the quarter. And on a full-year basis, Wipro's headcount was down by 24,516 in FY24.

However, the utilisation rate improved by 520 bps Yoy to 84.8 percent.

This comes at a time when IT companies are looking to improve utilisation rate of existing employees amidst lowering attrition, to grow margins.

India’s top two IT companies were off to a mixed start in Q4FY24, marked by tepid demand because of an uncertain macroeconomic environment.

While Tata Consultancy Services posted a year-on-year (YoY) increase of 9 percent in net profit to Rs 12,434 crore in the quarter ended March 31, 2024, its nearest rival Infosys Ltd reported a 30 percent YoY increase in net profit at Rs 7,969 crore in the fourth quarter of FY24.

The Bengaluru-based company won large deals worth $1.2 bln during the quarter, higher than the $900 million it won last quarter. The company’s total deal wins stood at $3.6 bln, lower than the $3.8 bln it won in the September quarter.

On April 19, Wipro's shares on BSE closed 1.74% higher at Rs 452.1 apiece.