Wipro on Wednesday (April 14, 2025) reported a 25.9% year-on-year rise in consolidated net profit for the March quarter to ₹3,569.6 crore, but warned of a weak quarter ahead with up to 3.5% expected drop in IT services revenue for Q1FY26, amid global uncertainties.
CEO and Managing Director Srini Pallia said clients remain cautious in the face of macroeconomic uncertainty. He assured that Wipro is focused on partnering closely with them, while keeping its gaze on consistent and profitable growth.
Over the past weeks, U.S.’ on-now, off-now tariff moves have roiled global markets and many IT analysts fear that a bitter trade war and a possible slowdown in the American economy could take a toll on IT decision-making or curtail tech demand and spends from specific verticals.
The $280 billion IT services company derives a large chunk of its revenue from U.S. clients.
At Wipro’s earnings conference on Wednesday (April 14, 2025), Pallia acknowledged that the recent tariff announcements have only added to the global uncertainties.
“The global industry environment remained uncertain for most of the year. And, of course, the recent tariff announcements have only added to that. Even though the underlying demand for the tech re-invention remains strong, our clients are approaching it more cautiously,” he said.
Revenues for the fourth quarter (Q4) of FY25 came in at ₹22,504.2 crore, a marginal increase of 1.33% from ₹22,208.3 crore in Q4 FY24.
The net profit (attributable to equity holders of the company) for Q4FY25 was up 25.9% to ₹3,569.6 crore. Seen sequentially, the profit and revenue rose 6.43% and 0.83%, respectively.
The earnings per share for the quarter at ₹3.4 ($0.04), translated into an increase of 6.2% quarter-on-quarter and 25.8% on the year-ago period.
For full FY25, profits rose 18.9% to ₹13,135.4 crore. Revenues for the full fiscal year slipped a tad (0.74%) to ₹89,088.4 crore.
But the biggest disappointment, however, is its Q1FY26 guidance.
For June quarter, the Bengaluru-headquartered firm sees revenue from its IT services business in the range of $2,505 million to $2,557, which marks a drop of 1.5-3.5% in constant currency terms on a sequential basis.
“As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth,” Mr. Pallia said.
Wipro closed FY25 with two mega deal wins, an increase in large-deal bookings, and growth in top accounts, he said.
“Client satisfaction scores improved, reflecting strong execution and engagement,” says Pallia who completes a year at the helm, as the top boss of Wipro.
The company — which competes with larger peers like TCS and Infosys for contracts in global and domestic markets — asserted that it continued to invest in global talent and in strengthening consulting and AI capabilities.
Wipro’s employee count closed at 2,33,346, slightly higher than 2,32,614 in the same period previous year.
For Q4FY25, the total bookings was at $3,955 million, up 13.4% quarter-on-quarter in constant currency. The large deal bookings was at $1,763 million, an increase of 48.5% year on year.
The IT services operating margin for Q4, FY25 was at 17.5%, flat quarter-on-quarter and expansion of 1.1% year-on-year.
“For Q4, operating margins expanded 110 basis points year-on-year and for the full financial year margin expanded by 90 basis points. Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. Our endeavour will be to maintain the margin in a narrow band in the coming quarters,” Wipro Chief Financial Officer Aparna Iyer said.
The company did not specify hiring targets for FY26, but confirmed that it had hired the intended numbers for FY25 (about 10,000).
“We don’t guide for full year (on hiring), we will take it as it comes from a growth perspective,” Wipro’s Chief Human Resources Officer (CHRO) Saurabh Govil said.
For the full fiscal year, large deal bookings were at $5.4 billion, up 17.5% year-on-year. Total bookings were at $14.3 billion, a decline of 3.8% year-on-year.
The company said the interim dividend of ₹6 declared by the board at its January 17 meeting will be considered as final dividend for the 2024-25 financial year.
Wipro is the second largest Indian tech company to declare results in the ongoing Q4 earnings season, after Tata Consultancy Services posted its report last week.
The country’s largest IT services firm TCS reported a 1.7% decline in the March quarter net profit to ₹12,224 crore, hurt largely by a margin contraction.
The Tata Group company also announced that it will be deferring wage hikes to its 6.07 lakh employees due to the business uncertainties triggered by the tariff issues. Its FY25 net profit increased 4.2% to ₹48,553 crore on the back of a 6% growth in revenue to ₹2.55 lakh crore or over $30 billion.
Published – April 16, 2025 06:33 pm IST