Wipro Reports Steady Q1 Performance Amid Market Caution

Wipro reported a 4.6% year-on-year increase in net profit for Q1 FY25 at Rs 3,003.2 crore, despite a year-on-year revenue drop of 3.8%. The company gave a flat growth outlook for Q2 and highlighted cautious client spending. Wipro plans significant hiring and showcased resilience amid a global outage in Microsoft's systems.

IT services major Wipro on Friday reported a 4.6 per cent year-on-year rise in consolidated net profit for the June quarter at Rs 3,003.2 crore, while issuing a flat sequential growth guidance of -1 to 1 per cent. Despite this sentiment, the company's CEO Srini Pallia remains optimistic about Wipro's stronger position going into Q2. Q1 FY25 revenue for the Bengaluru-based firm decreased by 3.8 per cent year-on-year to Rs 21,963.8 crore.

The firm projects revenue from its IT services business segment to fall between USD 2,600 million to USD 2,652 million for the quarter ending September 2024. Top management highlighted that while the demand environment remains cautious and discretionary spending is muted, Wipro's geographic distribution of revenue remains strong, particularly in the Americas and Europe. In dollar terms, Q1 IT services revenue was USD 2,625.9 million, a 1.2 per cent sequential decline.

On headcount, the firm onboarded 3,000 freshers this quarter and plans to hire an additional 10,000-12,000 people in this and the next fiscal year. Wipro's larger peers, Infosys and TCS, have more aggressive hiring plans. Despite a 2.78 per cent drop in share price on Friday, Wipro is not impacted by the global Microsoft outage and is assisting affected clients globally.