Wipro Q1 FY25: PAT Rises 5%, Revenue Declines By 4%

IT player Wipro on Friday reported a consolidated net profit of Rs 3,003 crore for the quarter ended 30 June 2024, a 4.6 per cent increase over the Rs 2,870 crore posted in the same period last year. 

Despite this positive growth in profit, the company's revenue from operations declined by 4 per cent to Rs 21,964 crore, down from Rs 22,831 crore in the corresponding quarter of the previous financial year.

The reported net profit crossed market expectations, which had pegged the figure at Rs 2,993 crore. However, the revenue fell short of the estimated Rs 22,258 crore. 

For the upcoming quarter ending 30 September 2024, Wipro has provided guidance that its IT services business segment revenue will range between USD 2,600 million and USD 2,652 million, indicating a sequential growth forecast of between -1.0 per cent to +1.0 per cent in constant currency terms.

On a quarter-on-quarter (QoQ) basis, the company's gross revenue saw a slight decline of 1.1 per cent, dropping to Rs 22,208 crore from Rs 22,208 crore in the previous quarter. The IT services segment reported revenue of USD 2,625.9 million, a decrease of 1.2 per cent compared to the last quarter and a 5.5 per cent decline year-on-year (YoY). In non-GAAP constant currency terms, the IT services revenue fell by 1.1 per cent quarter-on-quarter and 4.9 per cent YoY.

“We recorded another quarter of total large deal bookings over USD 1 bn, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and preparing our workforce for an AI-first future,” said Srini Pallia, CEO and Managing Director, Wipro

Total bookings for the quarter amounted to USD 3.28 billion, which represents a decline of 3.1 per cent QoQ and 3.6 per cent YoY. 

Large deal bookings were recorded at USD 1,154 million. The IT services operating margin for the quarter was 16.5 per cent, showing a slight improvement of 0.1 per cent from the previous quarter and 0.4 per cent YoY.

“We continued to expand our margins to 16.5 per cent in Q1’25, this is a 42-bps improvement YoY. Our margin performance is also reflected in our EPS increase of 10 per cent YoY. Our operating cash flows continue to be strong at 131.6 per cent of our net income which takes our current investment and cash balance to USD 5.4 billion” – Aparna Iyer, Chief Financial Officer, Wipro

Wipro reversed its headcount reduction trend with a slight increase of 337 employees in Q1 FY25, bringing the total to 2,34,391 at the end of June. This follows a drop of 6,180 employees in the previous quarter, which was the sixth consecutive quarter of decline.