Leading Indian IT services exporter Wipro announced a 4.6% year-on-year increase in net profit for the first quarter of FY25, surpassing market expectations and slightly raising its revenue guidance for the fiscal year. Wipro’s net profit for Q1 stood at Rs 3,003 crore. However, revenues saw a 3.8% year-on-year decline, amounting to Rs 21,964 crore.
For the second quarter, Wipro has projected revenue between $2,600 million and $2,652 million, indicating a growth range of -1% to 1%. This outlook marks an improvement from the previous guidance of -1.5% to 0.5%.
Wipro’s large deal bookings were valued at $1.2 billion, reflecting a 3.6% year-on-year decline. The operating profit margin for the first quarter was 16.5%, a 0.5% increase compared to the same period last year. In Q1, most geographies, including the Americas, Europe, and Asia-Pacific, experienced a year-on-year decline in growth. Similarly, business verticals such as BFSI, energy, and communication saw a dip in growth rates, with the healthcare segment being the sole exception.
Despite these challenges, CEO Srini Pallia expressed confidence in the company’s future growth, citing a robust deal pipeline. “We believe Wipro is in a better position than the first quarter,” Pallia noted.
Wipro’s employee headcount at the end of Q1 was 234,391, an increase of 337 from the previous quarter. However, compared to the same period last year, there was a reduction of 15,367 employees. The company plans to hire approximately 10,000-12,000 freshers during the current fiscal year.
In comparison to its peers, Wipro’s performance has lagged behind Tata Consultancy Services (TCS) and Infosys. TCS reported an 8.7% increase in net profit and a 5.4% rise in revenues. Infosys recorded a 7.1% growth in net profit and a 3.6% increase in revenue.
