Bengaluru-based IT services major Wipro posted a net profit of Rs 3,036.6 crore for the first quarter of FY25, up 5.2 per cent from a year ago. Profit was up 6.2 per cent quarter-on-quarter (Q-o-Q) and above consensus Bloomberg estimates of Rs 2,931 crore.
Revenue for the March quarter was down 3.79 per cent from the year-ago period to Rs 21,963.8 crore. This was below consensus Bloomberg estimates that pegged the revenue at Rs 22,237.4 crore.
On a sequential basis, revenue growth was down 1.1 per cent as pressure continued on discretionary spending.
IT services segment revenue was at $2,625.9 million, a decrease of 1.2 per cent Q-o-Q and a decrease of 5.5 per cent Y-o-Y.
The company announced total booking at $3.2 billion. Large deal bookings were at $1.1 billion, a decrease of 3.1 per cent Q-o-Q and 3.6 per cent Y-o-Y.
Wipro has forecast revenue from its IT services business segment to be in the range of $2.60 billion to $2.65 billion in Q2 FY25. This translates to a sequential guidance of -1 per cent to +1 per cent in constant currency terms.
Srini Pallia, chief executive officer and managing director, said, “We recorded another quarter of total large deal bookings over $1 billion, with our largest win in recent years. Our top accounts continued to grow, accompanied by growth in Americas 1 SMU, BFSI and Consumer sectors. We are pleased with the momentum we have built in Q1 across industries and sectors and confident in our ability to execute better on bookings and profitable growth as we transition to Q2. While we continue to build on our ai360 strategy and prepare our workforce for an AI-first future.”
IT services operating margin for the quarter was at 16.5 per cent, an increase of 0.1 per cent Q-o-Q and 0.4 per cent Y-o-Y.
Growth across geographies and verticals was either subdued or in decline. Americas 1 grew 1.3 per cent Y-o-Y and 0.3 per cent sequentially. Americas 2 was down 3 per cent Y-o-Y and 0.9 per cent sequentially. Europe was down 11.6 per cent Y-o-Y and 1.9 per cent Q-o-Q. APMEA was also down 13.2 per cent Y-o-Y.
When it comes to verticals, BFSI was down 5.3 per cent Y-o-Y but grew marginally at 0.3 per cent sequentially. Energy, natural resources and utilities were down 12 per cent Y-o-Y and 6.5 per cent Q-o-Q. Manufacturing was down 15.7 per cent Y-o-Y and 3.4 per cent Q-o-Q. Communications was the worst, with a decline of 21.9 per cent Y-o-Y and 2 per cent Q-o-Q.
Aparna Iyer, chief financial officer, said, “We continued to expand our margins to 16.5 per cent in Q1 FY25; this is a 42-bps improvement Y-o-Y. Our margin performance is also reflected in our earnings per share (EPS) increase of 10 per cent Y-o-Y. Our operating cash flows continue to be strong at 131.6 per cent of our net income, which takes our current investment and cash balance to $5.4 billion.”
Voluntary attrition was at 14.1 per cent on a trailing 12-month basis. Utilisation at the company was at a high of 87.7 per cent.
First Published: Jul 19 2024 | 4:32 PM IST
