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Informist, Wednesday, Apr. 16, 2025

By Arya S. Biju

MUMBAI – Wipro Ltd.'s revenue guidance for Jan-Mar factors in the tariff war-led macroeconomic uncertainty, the company's management said in a post-earnings analyst call Wednesday. Earlier in the day, the company had guided for a sequential decline of 3.5-1.5% in sales for the June quarter. The upper end of the guidance sees improvement in the demand situation from the current macroeconomic scenario, while the lower end factors in the worsening of the demand environment, Srini Pallia, chief executive officer and managing director of the company, said, adding, "...we are somewhere in between that." 

The company sees the tariff-led uncertainty to still be high, with the worsening trade war between the US and China. It expects the impact of the macroeconomic uncertainty to be seen in both the US and Europe. It also expects an indirect impact across verticals, with the consumer and manufacturing sectors seeing direct impact.  

Given the uncertain macroeconomic environment, the company expects clients to maintain a cautious approach going forward, especially on large transformation programs and discretionary spends, despite the strong underlying demand for tech reinvention, the company said. The clients are waiting to see the impact of US tariffs on costs and consumer demand before taking decisions.   

However, the company confirmed that it has seen some stability after the 90-day tariff pause announced by the US last week. Among geographies, the company has faced headwinds in the banking, financial services and insurance sector in Europe. Going forward, the company said it is looking at opportunities in the segment. 

Wipro said it will focus on bringing back the growth trajectory in Europe. With a new leadership team, strong pipeline and the deal with Phoenix group, which is expected to ramp up in Oct-Mar, Wipro expects to see positive momentum in Europe in the upcoming quarters. The company's revenue from Europe fell over 3% sequentially in Jan-Mar. Further on operating margin, the company said it expects to keep it in a narrow band for the next few quarters. It did not provide any guidance for the margin.

For Jan-Mar, Wipro reported a consolidated net profit of INR 35.70 billion, up 6.4% on quarter. The company's revenue was INR 225.04 billion, up 0.8% on quarter. While the bottom line beat the Street's expectation of INR 33.38 billion, the top line was lower than the anticipated INR 226.38 billion. The company announced its Jan-Mar earnings post market hours on Wednesday and shares of the company closed 1.5% higher at INR 247.65 on the National Stock Exchange.  End

US$1 = INR 85.68

Edited by Deepshikha Bhardwaj

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