Wipro, one of India’s leading information technology firms, reported its fourth-quarter results for the fiscal year 2025 today, revealing a robust 26% year-on-year increase in net profit, reaching ₹3,570 crore. This figure marks a significant rise from ₹2,834.6 crore reported in the same quarter last year, surpassing analysts' expectations of ₹3,290 crore.
The company's revenue from operations saw a modest increase of 1.33% year-over-year, totaling ₹22,504 crore, compared to ₹22,208.3 crore during the corresponding quarter of FY24. Despite this slight growth, the IT services segment, which constitutes the bulk of Wipro's business, reported a decline. Specifically, the segment revenue stood at $2,596.5 million, reflecting a decrease of 1.2% sequentially and 2.3% year-on-year. In constant currency terms, this revenue decreased by 0.8% quarter-on-quarter and 1.2% year-on-year.
Wipro's operating margin for the IT services segment expanded by 1.1 percentage points year-on-year, reaching 17.5%. However, this figure remained flat on a sequential basis, indicating that while the company has been successful in improving profitability, challenges in revenue growth persist.
Srini Pallia, CEO and Managing Director of Wipro, expressed optimism about the company's performance, stating, "We closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts. Client satisfaction scores improved, reflecting strong execution and engagement." This sentiment is echoed by the impressive total bookings during the quarter, which amounted to $3,955 million, marking a 13.4% quarter-on-quarter rise in constant currency.
Large deal bookings also showcased significant growth, surging 48.5% year-on-year to $1,763 million in constant currency terms. This surge signals strong client confidence in Wipro's capabilities, despite the broader macroeconomic uncertainties that have affected the IT sector.
Wipro's headcount as of March 31, 2025, stood at 233,346 employees, reflecting a slight increase of 614 employees from the previous quarter. The company's voluntary attrition rate decreased to 15.0% on a trailing 12-month basis, down from 15.3% in the December 2024 quarter. This reduction in attrition rates may indicate improved employee satisfaction and stability within the workforce.
Looking ahead, Wipro has provided guidance for the first quarter of FY26, expecting revenue from its IT services business segment to fall within the range of $2,505 million to $2,557 million. This projection translates to a sequential decline of between 3.5% to 1.5% in constant currency terms, indicating cautious optimism amid ongoing economic challenges.
Aparna Iyer, Chief Financial Officer, noted, "For Q4, operating margins expanded 110 basis points year-on-year and for the full financial year, margin expanded by 90 basis points. Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. Our endeavor will be to maintain the margin in a narrow band in the coming quarters."
Despite the challenges in revenue growth, Wipro's focus on profitability and operational efficiency has positioned it well for future success. The company has been investing in enhancing its consulting and AI capabilities, which are expected to drive growth moving forward.
In the stock market, Wipro shares closed at ₹247.80, gaining 1.5% during the trading session on April 16, 2025. This uptick reflects investor confidence in the company’s performance and future prospects.
As Wipro navigates the complexities of a changing economic landscape, maintaining strong client relationships and focusing on strategic investments will be crucial for sustaining growth. The company’s ability to adapt and respond to market demands will likely determine its success in the upcoming quarters.
Overall, Wipro's Q4 results highlight a company that, while facing some headwinds, is still achieving significant milestones in profitability and client engagement, setting a positive tone as it enters the next fiscal year.
