Wipro Q1 Results Highlights: Net Profit Rises 4.6% to ₹3,003 Cr

Synopsis

On 19 July, Wipro announced its financial results for the first quarter of the fiscal year 2025. The company's net profit for this period increased by 4.6% compared to the same quarter last year reaching ₹3,003 crore. This profit exceeded what market analysts had predicted. However, Wipro's total revenue for the April to June quarter decreased by 3.8% amounting to ₹21,964 cr.

Wipro Quarter Results Highlights

•    Wipro net profit ₹3,003 cr Q1 2024
•    Net profit increases 4.6% yoy
•    Revenue dips 3.8% to ₹21,964 cr

On 19 July, Wipro announced a 4.6% increase in its net profit for the first quarter of FY25 reaching ₹3,003 crore which exceeded market predictions. However, the company's consolidated revenue for the April-June period dropped by 3.8% to ₹21,964 crore. Analysts had expected Wipro's net profit to be around ₹2,953 crore and revenue to be ₹22,229 crore.

Wipro forecasts that its IT Services business will generate between $2.6 billion and $2.65 billion in revenue for the next quarter reflecting a potential change of -1% to 1% in constant currency terms. This is a slight improvement from the previous quarter's guidance of -1.5% to 0.5%.

India's leading IT companies have shown strong performance in the first quarter of FY25 with signs of recovery in discretionary spending and increased AI related deals. Nevertheless, these companies remain cautious indicating that full recovery may take a few more quarters. Tata Consultancy Services reported a 9% year on year increase in net profit to ₹12,040 crore meeting expectations. Infosys surpassed expectations and raised its revenue growth forecast for FY25 to 3-4%. HCL achieved a strong performance in Q1 with its net profit rising by 20% to ₹4,257 crore. Check Live Wipro Share Price NSE/BSE

Wipro New Deals

During the quarter, Bengaluru based company secured deals amounting to $1.2 billion which is a 3.6 percent decrease compared to the same period last year. Overall the company's total deal acquisitions reached $3.3 billion reflecting an 11.8 percent drop in constant currency terms from the previous year. Wipro has added 337 new employees this quarter ending a six quarter streak of declining headcount. Now the company has a total of 234,391 employees. The attrition rate which measures how many employees leave the company, slightly decreased to 14.1 percent over the last twelve months, compared to 14.2 percent in the previous quarter.

Wipro Management Commentary

In the past quarter, Wipro achieved success securing over $1 billion in large deals including one of the biggest deals they've won in recent years. This success was driven by strong growth in key accounts especially in the Americas and sectors like Banking, Financial Services and Insurance (BFSI) and Consumer according to CEO Srini Pallia.

Additionally, Wipro's Chief Financial Officer, Aparna Iyer, said an improvement in the company's operating margin which increased to 16.5% during the April-June quarter marking a rise of 42 basis points compared to the same period last year. This improved margin also led to a 10% yoy increase in their earnings per share or EPS) indicating better profitability and financial performance.

About Wipro Company

Wipro Ltd is a prominent international firm offering a broad array of services in information technology, consulting, and business process management. In the global IT services industry, Wipro ranks as the fourth-largest Indian company, following TCS, Infosys, and HCL Technologies.

On Friday, Wipro's stock price dropped by 2.8%, closing at ₹557 before the company's earnings announcement. Despite this recent dip, the stock has performed well overall in 2024, with a 17% increase in value. Notably, a significant portion of this growth occurred in the past month, during which the stock surged by 12.4%.

To Summarize

Wipro reported a net profit increase of 4.6% for the first quarter of FY25, amounting to ₹3,003 crore. However, its consolidated revenue for the April-June period declined by 3.8% to ₹21,964 crore which was below analyst’s predictions. Despite the earnings beat, Wipro's stock price fell by 2.8%, closing at ₹557 before the announcement. Nevertheless, the stock has generally performed well in 2024, rising by 17%, with a notable 12.4% increase in the past month alone.