Wipro’s net profit jumps 24.5%; maintains hiring outlook

Bengaluru: IT major Wipro, on Friday, reported a 24.5% year-on-year uptick in its consolidated net profit to Rs 3,354 crore for the quarter ended December 31, 2024 (Q3FY25) on back of strong deal execution. However, revenue remained flat at Rs 22,319 crore, up only 1% from the same period last year. Sequentially, the topline and bottomline increased 0.1% and 4.5%, respectively.

“In a seasonally weak quarter, our strong execution helped us deliver above the top end of our revenue guidance. We see discretionary spends coming back and while cost optimisation remains, continuous spending in artificial intelligence (AI) can also be seen,” said Srini Pallia, Chief Executive Officer and Managing Director during the earnings call. 

The company marginally raised its sequential revenue guidance to -1% to 1% after slashing it to -1.5% - 0.5% in the previous quarter. Additionally, it maintained its hiring outlook at 10,000- 11,000 campus hires for the upcoming fiscal year. The company also declared an interim dividend of Rs 6 per share.

The Bengaluru-headquartered IT firm’s headcount declined by 1,157 which the management termed as ‘marginal’. Attrition stood at 15.3%, as opposed to 14.5% in Q2.

“We have closed all hiring backlog in the third quarter, honouring all our pending offers. We will continue to onboard 2,500-3,000 freshers every quarter, subject to quarterly changes,” said Chief Human Resources Officer Saurabh Govil.

Wipro’s operating margin for Q3 was up by 70 basis points to 17.5% compared to Q2, highest in three years on the back of operational improvement in its core IT and consulting businesses. Its quarterly total contract value (TCV) stood at $3.5 billion, down 7.3% on a yearly  basis. 

“We are seeing a momentum in the small and medium sized deals. The pipeline for large deals remains strong and we remain optimistic for the next quarter (Q4),” said Aparna Iyer, Chief Financial Officer However, the company did not give a comment on the next year’s outlook. 

On the popular issue of US’ upcoming regime, the company remains positive with an expectation of momentum picking up. Wipro’s 80% employees in America are local, hence it does not see an impact from the crackdown on H1B visas.

FILE PHOTO: Tech Mahindra logo is seen on its office building in Noida on the outskirts of New Delhi India March 7 2019. Picture taken March 7 2019.

Tech Mahindra Q3 profit zooms

IT services exporter Tech Mahindra posted a 93% rise in its consolidated net profit for the third quarter of the current fiscal year (Q3FY25) at Rs 983 crore up from Rs 510 crore a year ago. Revenue from operations stood at Rs 13286 crore a 1.4% annual increase from Rs 13101 crore.  Sequentially the topline dropped by 0.2% while the profit after tax (PAT) fell 21.4%. Q3 is usually a weak quarter for IT companies majorly due to holiday furloughs.  “We see an improved rate of deal wins in our key verticals and priority markets. This coupled with consistent expansion in operating margins despite cross-currency headwinds during the quarter reaffirms that we are on track to achieve our long-term goals” said Mohit Joshi Chief Executive Officer and Managing Director. The Pune-headquartered company’s headcount stood at 150488 down 3785 on a quarterly basis. The attrition remained in the comfort range of 11.2%. TechM's total contract value (TCV) grew by 95.4% on a yearly basis to $745 million.