In a significant boost to its financial performance, Wipro Ltd., the Indian IT giant, announced a 24.5% year-on-year increase in its consolidated net profit for the quarter ending December 31, 2024. This surge, reported on January 17, 2025, from its headquarters in Bengaluru, exceeded analysts’ expectations and marked a notable milestone in the company’s financial year 2024-25.
Wipro’s net profit for the third quarter stood at ₹3,354 crore, surpassing the estimated decline of 5% quarter-on-quarter to ₹3,040 crore predicted by analysts polled by Moneycontrol. The company’s revenue for the quarter remained relatively stable at ₹22,319 crore, showing a 0.1% sequential growth, contrary to the anticipated 0.6% dip.
The IT major declared an interim dividend of ₹6 per share and revised its capital allocation policy, committing to distribute at least 70% of its net income as payouts over the next three years. Wipro’s operating margin improved to 17.5%, the highest in three years, driven by enhanced operational efficiencies and cost optimization.
Despite a 1.2% sequential decline in IT services revenue to $2.63 billion, the company saw a 0.1% growth in constant currency terms, aligning with the upper end of its guidance. Total bookings for the quarter were robust at $3.5 billion, with large deal bookings increasing by 6% year-on-year to $961 million. Wipro highlighted its strong cash generation, with operating cash flow reaching ₹4,931 crore, which was 146.5% of its net income.
CEO and Managing Director Srini Pallia attributed the strong performance to the company’s in-quarter execution, which allowed it to surpass revenue guidance despite the seasonally weak quarter. He emphasized Wipro’s achievement of its highest margins in three years while continuing investments in workforce and innovation. CFO Aparna Iyer noted the margin expansion for the fourth consecutive quarter, along with strong earnings per share growth and robust cash generation.
Wipro secured 17 large deals during the quarter, with a total contract value of $1 billion, including significant wins in healthcare, financial services, media, and telecommunications. One notable deal involved partnering with a US-based health insurer to implement AI-powered platforms aimed at improving operational efficiency and customer experience. Another major win saw Wipro transforming the core banking system of an Indian private bank, leveraging its expertise to build a scalable digital platform.
Looking ahead, Wipro projected IT services revenue for the March quarter to be in the range of $2,602-2,655 million, translating to a sequential change of -1% to 1% in constant currency terms.
