Wipro reported a 4.5% quarter-on-quarter rise in consolidated net profit at Rs 3,354 crore for Q3 FY25, which was above market expectations. Revenue for the quarter was flat at Rs 22,319 crore, up marginally 0.1% sequentially. The consensus estimates had expected a 5% decline in net profit and revenue decline of 0.6%.
The IT giant announced an interim dividend of Rs 6 per share and updated its capital allocation policy, pledging at least 70% of net income as payouts over a three-year period. Operating margins rose to 17.5%, the highest in three years, on cost optimization and operational efficiencies.
Key Highlights:
- IT services revenue stood at $2.63 billion, down 1.2% sequentially but up 0.1% in constant currency terms, meeting the higher end of guidance.
- Total bookings for the quarter reached $3.5 billion, with large deal bookings growing 6% year-on-year to $961 million.
- Wipro achieved operating cash flow of Rs 4,931 crore, representing 146.5% of net income.
- Voluntary attrition fell to 15.3% on a trailing 12-month basis, reflecting better employee retention.
Wipro estimated IT services revenue for the March quarter in the range of $2,602 million to $2,655 million, a sequential change of (-)1% to 1% in constant currency terms.
The CEO, Srini Pallia, attributed the performance of the quarter to solid execution in a seasonally weak quarter. The CFO, Apara Iyer, highlighted the fourth consecutive quarter of margin expansion and pointed at good cash flow and earnings growth. It had secured 17 large deals with a total contract value of $1 billion, including key projects in healthcare, financial services, and telecommunications.
Notable wins included implementing AI-powered platforms for a US health insurer and building a scalable digital banking platform for an Indian private bank.
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Source: Moneycontrol
News Desk
