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Informist, Wednesday, Apr. 16, 2025

 

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--Wipro Jan-Mar consol net profit INR 35.70 bln 
--Analysts saw Wipro Jan-Mar consol net profit INR 33.38 bln 
--Wipro Jan-Mar consol net profit INR 35.70 bln vs INR 33.54 bln qtr ago 
--Wipro Jan-Mar consol revenue INR 225.04 bln vs INR 223.19 bln qtr ago 
--Wipro FY25 consol net profit INR 131.35 bln vs INR 110.45 bln year ago 
--Wipro FY25 consol revenue INR 890.88 bln vs INR 897.60 bln year ago 
--Wipro Jan-Mar IT services sales INR 224.45 bln vs INR 222.85 bln qtr ago 
--Wipro: See Apr-Jun IT svcs sales between $2.51 bln and $2.56 bln 
--Wipro sees Apr-Jun IT svcs sales -3.5% to -1.5% on qtr in constant currency 
--Wipro Jan-Mar IT services operating margin 17.5%, flat on quarter 
--Wipro Jan-Mar total bookings $3.96 bln vs $3.51 bln quarter ago 
--Wipro Jan-Mar large deal booking $1.76 bln, up 48% YoY in constant currency 
--Wipro Jan-Mar 12-month attrition 15% vs 15.3% quarter ago 
--Wipro Jan-Mar operating cash flow INR 37.5 bln, down 28.2% on year 
--Wipro total headcount 233,346 as on Mar 31 vs 232,732 as on Dec 31 
--Wipro Jan-Mar employee utilisation 84.6% vs 83.5% quarter ago 
--Wipro Jan-Mar revenue from BFSI 34.2% of sales vs 34.1% quarter ago 
--Wipro Jan-Mar revenue from consumer ops 18.9% of sales vs 19.0% quarter ago 
--Wipro Jan-Mar revenue from comm ops 15.2% of sales vs 15.3% quarter ago 
--Wipro Jan-Mar revenue from health ops 14.4% of sales vs 14.7% quarter ago 
--Wipro Jan-Mar total active customers 1,282 vs 1,299 quarter ago 
--Wipro Jan-Mar new customers 63 vs 63 quarter ago 
--Wipro CFO: Endeavour to maintain margin in narrow band in coming quarters 
--Wipro Jan-Mar sales down 0.8% on quarter in constant currency terms 
--Wipro Jan-Mar sales down 1.2% on year in constant currency terms 
--Wipro FY25 sales down 2.3% on year in constant currency terms 
--Wipro Jan-Mar BFSI sales dn 0.5% QoQ in constant currency, up 0.8% YoY 
--Wipro Jan-Mar comm sales dn 0.9% QoQ in constant currency, dn 1.1% YoY 
--Wipro Jan-Mar energy, mfg sales up 1.1% on qtr in constant currency 
--Wipro FY25 BFSI sales down 0.1% YoY in constant currency terms 
--Wipro Jan-Mar sales from Americas-2 down 1% QoQ in constant currency terms 
--Wipro Jan-Mar sales from Europe down 2.5% QoQ in constant currency terms 

 

 

By Arya S. Biju

 

MUMBAI – Information technology major Wipro Ltd. reported mixed earnings for the March quarter, with the bottom line surpassing analysts' estimates and the top line slightly missing it. The mid-single-digit sequential rise in consolidated net profit for the quarter was supported by a marginal rise in total expenses due to a 0.3% rise in employee benefit expenses and low-single-digit fall in subcontracting and technical fees. The company also reported a 2.3% year-on-year fall in revenues in constant currency terms for the full year ended Mar. 31.

 

The company's consolidated revenue for the quarter was INR 225.04 billion, up 0.8% on quarter and 1.3% on year. However, this was lower than the Street's expectation of INR 226.38 billion. In constant currency terms, the revenue was down 0.8% on quarter and 1.2% on year. 

 

Its consolidated profit attributable to shareholders rose over 6% sequentially to INR 35.70 billion and surpassed analysts' expectations of INR 33.38 billion. On a year-on-year basis, the net profit surged nearly 26%. The March quarter marked the third consecutive quarter of sequential revenue growth and sixth consecutive quarter of sequential growth in net profit.

 

The company expects revenue from IT services to be between $2.51 billion and $2.56 billion for the June quarter. In constant currency terms, this would mean a sequential decline in sales of between 3.5% and 1.5%. For the March quarter, the revenue from the segment was $2.60 billion, down 1.2% on quarter but up 2.3% on year. In constant currency terms, IT services revenue decreased 0.8% on quarter and 1.2% on year. 

 

In rupee terms, the revenue from IT services rose 0.7% on quarter to INR 224.45 billion. However, for 2024-25 (Apr-Mar), the revenue from the segment fell 0.6% to INR 888.22 billion.

 

For Jan-Mar, the operating margin of IT services remained flat on quarter at 17.5% but expanded by 110 basis points on a year-on-year basis. For the full year, the operating margin saw a 90 bps on-year expansion to 17.1%. "Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment," Aparna Iyer, chief financial officer of the company, said in a press release. The company aims to maintain its margin in a narrow band in the upcoming quarters, Iyer said.

 

The company's large deal wins for the quarter jumped nearly 49% on year in constant currency terms to $1.76 billion. Its total bookings for the quarter also saw a 13.4% sequential rise in constant currency terms to $3.96 billion. For FY25, the large deal bookings rose 17.5% in constant currency terms to $5.40 billion, while the total bookings fell 3.8% to $14.30 billion. "We closed FY25 with two mega-deal wins, an increase in large deal bookings, and growth in our top accounts," Srini Pallia, chief executive officer and managing director of the company, said in a press release.

 

Wipro's total employee headcount rose by 614 to 233,346 as of Mar. 31. The company's trailing 12-month attrition was 15.0% in the March quarter, only marginally down from 15.3% a quarter ago. The employee utilisation rate for the quarter improved to 84.6% from 83.5% a quarter ago.

 

The company added 63 new customers in the March quarter and 197 in the full year. Its active clients have reduced to 1,282 as of Mar. 31 from 1,299 on Dec. 31. The company witnessed an improvement in client satisfaction scores, reflecting strong execution and engagement, Pallia said. "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," Pallia said.  

 

For the financial year ended Mar. 31, the company's consolidated net profit rose nearly 19% to INR 131.35 billion. Consolidated revenue for the year fell marginally to INR 890.88 billion. In dollar terms, the revenue stood at $10.50 billion for FY25. The company's operating cash flow fell over 28% on year in the March quarter to INR 37.5 billion. For the full year, the operating cash flow dropped nearly 4% to INR 169.40 billion. 

 

SEGMENTS, REGIONS

Barring Americas 1 and the energy, manufacturing and resources vertical, all other verticals and geographies reported a sequential decline in revenue in the March quarter. Americas 1 includes the entire business of Wipro in Latin America and healthcare industry in the US.

 

Its largest segment of banking, financial services and insurance reported a 0.5% sequential decline in revenue in constant currency terms, while its contribution to the company's total revenue rose marginally to 34.2% from 34.1% a quarter ago. For FY25, the sales in this segment fell 0.1% in constant currency terms.

 

The consumer business reported a 1.3?ll in revenue in constant currency terms for Jan-Mar. Its contribution to the company's revenue also declined on quarter to 18.9% from 19%. The revenue of the company's smallest business – health segment – which contributed 14.4% of sales, fell 3.1% on quarter in constant currency.

 

Its technology and communications segment reported a decline of 0.9% from the last quarter and a 1.1?cline compared to the year-ago quarter. Its contribution to the company's revenue also declined slightly on quarter to 15.2% from 15.3%. The energy, manufacturing, and resources segments grew 1.1% from the previous quarter in constant currency. The sales in its consumer operations fell 1.3% on quarter and were flat on year.

 

Among other regions, sales in Latin America grew 0.2% sequentially, while revenue from US and Canada declined 0.1% and that from Europe fell 2.5% on quarter in constant currency terms. The company announced its Jan-Mar earnings after market hours on Wednesday. Shares of Wipro closed 1.5% higher at INR 247.65 on the National Stock Exchange.  End

 

US$1 = INR 85.67

 

Edited by Ashish Shirke

 

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