Analyst Concall
Wipro to switch focus on deal conversions in coming qtrs
This story was originally published at 21:25 IST on 17 July 2025
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--Wipro: Happy with deal wins, focus will be on conversions
--CONTEXT: Wipro mgmt's comments in post-earnings concall with analysts
--Wipro: Expect tariff-related uncertainty to settle down in coming qtrs
--Wipro: Large deal conversions will need investments, could impact margins
--Wipro on Apr-Jun margin: We are in a good place right now
By Anand JC
NEW DELHI – Information technology giant Wipro Ltd.'s management Thursday said the company will switch its focus on deal conversions and eye ramp-ups in the coming quarters. Some of these deal executions will require upfront investments that could negatively impact its margins, the company told analysts in a post-earnings conference call.
The company reported its June quarter earnings after market hours. Wipro's consolidated net profit for the June quarter was INR 33.30 billion on revenues of INR 221.35 billion. Its deal booking for the period was $5 billion. Of this, large deals formed $2.7 billion, up 131% on year and nearly 50% sequentially in constant currency terms.
"We're very happy with the win. Our focus and energy is going to be on conversion," the company said. "A lot of these deals will ramp up over the next four-six quarters. These deals have a good balance of both renewing and an element of expansion," the management said. And because these larger deals strongly contested, their margin profile is also weaker compared to the rest of its portfolio.
The management said it will use operating levers to offset any of the margin impact. Wipro reported an IT services operating margin of 17.3% for the June quarter, up nearly a percent on year, but down mildly sequentially in constant currency terms.
The company said that it is happy with its margin position achieved in the June quarter. On tariff worries emanating from the US, Wipro said that it hopes the situation settles down in the next couple of quarters, enabling clients to come back and invest in the company's transformation programs.
In Europe, the company faced challenges due to macroeconomic environment and a few client-specific challenges. "We do feel confident that in the second half of this financial year we should start seeing some capitalisation and growth in Europe," the management said, adding that client-specific challenges are now behind it.
Wipro's management acknowledged that large deals are dominating its order pipeline. In terms of total contract value, larger deals are being signed much more than smaller and medium deals, the company said. Wipro signed 16 large deals in the June quarter, including two mega deals and one which has the potential to be a mega deal, the company said during the call.
"We had very strong bookings in quarter one (Apr-Jun), we have a very strong pipeline for quarter two (Jul-Sept)," the company said. Wipro expects the second half of the ongoing financial year to be better than the first half.
Thursday, shares of Wipro closed at INR 260.60 on the National Stock Exchange, down 0.8%. End
US$1 = INR 86.08
Edited by Deepshikha Bhardwaj
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