Wipro’s third-quarter net profit has increased by 4.5% quarter-on-quarter to Rs 3,354 crore, surpassing expectations. Additionally, the company’s margin has reached a three-year high
Wipro Ltd announced a 4.5 percent increase in consolidated net profit to Rs 3,354 crore for the quarter ending December 31, 2024, exceeding analysts’ predictions. The IT giant’s Q3 FY25 revenue remained steady at Rs 22,319 crore, showing a 0.1 percent sequential growth.
Analysts surveyed by Moneycontrol had anticipated a 5 percent decrease in the company’s net profit to Rs 3,040 crore and a 0.6 percent decline in revenue to Rs 22,176 crore.
Wipro also declared an interim dividend of Rs 6 per share and updated its capital allocation policy to ensure at least 70 percent of net income is distributed over a three-year period.
The operating margin rose to 17.5 percent, the highest in three years, due to improved operational efficiencies and cost optimization. Wipro’s voluntary attrition rate decreased to 15.3 percent over the past 12 months, indicating better employee retention.
Although IT services revenue for the quarter dropped 1.2 percent sequentially to $2.63 billion, it increased by 0.1 percent quarter-on-quarter in constant currency terms, aligning with the upper end of the company’s guidance. Wipro’s total bookings for the quarter reached $3.5 billion, with large deal bookings rising by 6 percent year-on-year to $961 million. The company emphasized its strong cash generation, with operating cash flow reaching Rs 4,931 crore, equivalent to 146.5 percent of net income.
Looking forward, Wipro projected IT services revenue for the March quarter to be between $2,602-2,655 million, representing a sequential change of (-)1 percent to 1 percent in constant currency terms.
Srini Pallia, CEO and Managing Director, stated that the company’s exceptional execution during the quarter allowed it to exceed revenue expectations in a traditionally slow period. He also mentioned that Wipro achieved its highest margins in three years while continuing to invest in its workforce and innovation.
The Chief Financial Officer of Wipro, Aparna Iyer, proudly announced that the company’s margin has expanded for the fourth consecutive quarter, showing strong growth in earnings per share and robust cash generation.
During the quarter, Wipro secured a total of 17 large deals with a combined contract value of $1 billion. These wins spanned various industries including healthcare, financial services, media, and telecommunications. One significant deal involved collaborating with a US-based health insurer to implement AI-powered platforms aimed at enhancing operational efficiency and customer experience. Another notable success was Wipro’s transformation of the core banking system for an Indian private bank, showcasing their expertise in building scalable digital platforms.
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