Bengaluru, NFAPost: Bengaluru-based information technology services major Wipro posted a net profit of Rs 3,570 crore for the fourth quarter of FY25, up 25.9% from a year ago. Profit was up 6.4% quarter-on-quarter (Q-o-Q).
Wipro, India’s second largest IT company, said its revenue for Q4FY25 was up by 1.3% from the year-ago period to Rs 22,504 crore. On a sequential basis, revenue grew 0.8%.
The company’s fourth quarter performance missed Bloomberg estimates. According to the Bloomberg estimate, revenue was expected at Rs 22,683 crore and net profit was expected to be at Rs 3,350 crore.
Wipro has forecast revenue from its information technology services business segment to be in the range of $2,505 million to $2,557 million. This translates to sequential guidance of (-)3.5% to (-)1.5% in constant currency terms.
Information technology services segment revenue was at $2.6 billion, a growth of 2.3% year-on-year and was down 1.2% Q-o-Q. The company’s IT services operating margin in Q4 stood at 17.5%, an expansion of 1.1% y-o-y. CFO Aparna Iyer said our endeavour will be to maintain the margin in a narrow band in the coming quarters.
The company announced large deal bookings at $1.8 billion, an increase of 48.5% year-on-year. The total bookings for the year were at $4 billion.
For the full year, the company reported net income of Rs 13,218 crore, an increase of 18.9% year-on-year. Revenue for the financial year was down 0.7% at Rs 89,088.4 crore.
Wipro Chief Executive Officer and Managing Director Srini Pallia said the company closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts.
“Client satisfaction scores improved, reflecting strong execution and engagement. We also continued to invest in our global talent and in strengthening our consulting and AI capabilities. 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,” said Wipro Chief Executive Officer and Managing Director.
Wipro Chief Financial Officer Aparna Iyer, pointed to the company’s focus on operational efficiency as part of the new fiscal strategy across the globe.
“Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environement. Our endeavour will be to maintain the margins in a narrow band in the coming quarters,” said Wipro Chief Financial Officer Aparna Iyer.
Wipro, which added just over 600 people in Q4FY25, remains cautious on hiring due to the uncertain environment. Wipro Chief Human Resources Officer (CHRO) Saurabh Govil said they will decide on wage hikes closer to the next appraisal cycle. Last year the company provided a wage hike in September.
In FY25, it onboarded about 10,000 freshers and the company did not specify hiring guidance in the current fiscal. “(On hiring), We don’t guide for a full year, we will take it as it comes from a growth perspective,” added CHRO Saurabh Govil.
The disappointing Q4 results come amid significant headwinds for the IT sector due to the ongoing trade war and a likely US recession. At least 20 analysts have cut their target price on Wipro’s stock, according to data compiled by Arvian Research.
Wipro is the second company after Tata Consulting Services (TCS) to announces its Q4 results. TCS flagged global chllenges during its earnings, declaring a decline of 1.7% in its Q4 profit.
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