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Jul 22, 2025
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IT services giant Wipro announced a 24% year-on-year increase in its consolidated net profit for the quarter that ended December 31, 2024. Revenue from operations rose marginally by 0.5% to Rs 22,319 crore, and the company posted a net profit of Rs 3,654 crore. Although the revenue growth was low, the company's execution was strong, supporting performance in a seasonally weak quarter.
Strong in-quarter execution propelled Wipro's growth as IT services segment revenue increased 1% year on year to $2.6 billion. The segment, however, recorded a 1.2% decrease in revenue on a sequential basis. While typically a weak quarter, the company outperformed the upper end of its revenue guidance and posted the best margins in the last three years.
For the quarter, the company had an operating margin of 17.5%, up from 17.8% in the previous quarter and 16.0% from the same quarter a year ago. Wipro put the positive results in context to its strong execution during the quarter and continued investment in its workforce, according to the company’s Chief Executive Officer, Srini Pallia.
Wipro’s board also announced an interim dividend of Rs 6 per share, with a record date of January 28, 2025. The dividend is anticipated to be paid by February 15. Wipro's profit after tax rose 5 percent sequentially, and revenue increased just 0.1 percent. The company’s earnings per share (EPS) were also 24.4% year-on-year.
Commenting on the second quarter performance, Aparna Iyer, Chief Financial Officer, Wipro, said it recorded an operating cash flow of Rs 4,930 crore, up 3% yearly. The cash-generating ability of the operations was robust, with the operating cash flow at 146.5% of net income for the quarter.
Wipro's outlook for March 2025 is conservative. The company expects revenue from its IT services business to be between $2,602 million and $2,655 million. These estimates reflect a sequential 1-1% decline in constant currency terms. The company has also approved a revised capital allocation policy that raises the payout ratio above 70 percent over a three-year block.
However, workforce retention showed some volatility: voluntary attrition stood at 15.3% on a trailing 12-month basis. Despite these challenges, Wipro remains optimistic about the company’s future growth, with the company securing $3.5 billion in deals, of which $961 million were for large contracts.
