Wipro Reports Strong Q4 Profit Amid Cautious Outlook
Wipro has announced a remarkable 25.9% increase in its consolidated net profit for the fourth quarter of FY25, reaching ₹3,569.6 crore. Despite this impressive growth, the IT giant has issued a cautious forecast for the upcoming quarter, predicting a potential decline in IT services revenue of up to 3.5% in Q1FY26 due to ongoing global uncertainties. CEO Srini Pallia emphasized the need for close collaboration with clients as they navigate a challenging economic landscape.
Financial Performance Highlights
For the fourth quarter ending March 2025, Wipro’s revenues amounted to ₹22,504.2 crore, reflecting a modest year-on-year increase of 1.33%. The net profit surge of 25.9% compared to the same quarter last year was complemented by a 25.8% rise in earnings per share (EPS), which reached ₹3.4 (approximately USD 0.04). Despite these positive results, Wipro anticipates a challenging first quarter for FY26, forecasting IT services revenue between $2,505 million and $2,557 million. This projection indicates a sequential decline of 1.5% to 3.5% in constant currency terms, highlighting the impact of fluctuating global economic conditions.
Cautious Client Sentiment
CEO Srini Pallia noted that while the demand for technological innovation remains robust, clients are approaching the market with increased caution due to macroeconomic factors. He stated, “As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth.” This sentiment reflects a broader trend in the industry, as companies grapple with the implications of global trade tensions and changing market dynamics.
Strategic Growth Initiatives
Despite the anticipated revenue dip, Wipro has successfully secured two significant deals and expanded its top accounts, demonstrating its commitment to strategic growth. The company reported an improvement in client satisfaction scores, indicating effective execution and engagement with its customer base. Wipro’s workforce has also seen a slight increase, with the employee count rising to 233,346 from 232,614 the previous year. Chief Human Resources Officer Saurabh Govil confirmed that Wipro met its hiring target for FY25, bringing in approximately 10,000 new employees.
Future Outlook and Dividend Announcement
Wipro’s Chief Financial Officer, Aparna Iyer, emphasized the company’s focus on operational efficiency, stating, “Our focus on execution rigor has ensured that our margins have steadily expanded even in a softening revenue environment.” The company declared an interim dividend of ₹6, which will be considered as the final dividend for the financial year. As the second-largest Indian tech company to report its results in the current Q4 earnings season, Wipro follows Tata Consultancy Services (TCS), which also highlighted challenges related to global economic pressures. As both companies navigate these uncertainties, analysts will closely monitor the impact on the Indian IT sector in the coming quarters.
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