Wipro on Friday topped street expectations with a 24.4 per cent year-on-year rise in consolidated net profit for the December quarter at ₹3,354 crore, as the top brass of India’s fourth-largest IT services company guided for a “more hopeful and resilient” 2025.
Wipro CEO and Managing Director Srinivas Pallia said clients are cautiously optimistic, and added that discretionary spending is slowly returning.
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Wipro, which competes with larger rivals such as TCS and Infosys in the IT services market, reported better-than-expected net profit numbers for Q3 FY25, but called out softness in Asia Pacific, Middle East and Africa (APMEA) and Europe regions.
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The Bengaluru-based tech major saw its revenue from operations rise a marginal 0.5 per cent to about ₹22,319 crore aided by momentum in banking, financial services, and insurance space as well as Americas geography.
For the coming March quarter, Wipro sees revenue from IT services business in the range of USD 2,602 million to USD 2,655 million, which sequentially translates into a band of 1 per cent decline to 1 per cent growth.
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The storied USD 250 billion Indian IT services sector has seen tepid growth over the past few quarters as global clients turned cautious in a world marked by macroeconomic uncertainties, geopolitical risks, and inflationary woes.
While the industry is placing bold AI bets and is hopeful of an improved tech outlook this year, all eyes are now on the US’ stance on trade and high-skilled immigration as President-elect Donald Trump returns to the White House this month. It is pertinent to mention that the world’s largest economy accounts for a big chunk of the revenue basket of the Indian IT services industry.
“So far as the new regime is concerned, we believe it will be business-friendly and are hoping that the momentum picks up,” Aparna Iyer, Wipro’s Chief Financial Officer said.
Wipro has declared an interim dividend of ₹6 per equity share/ADS. Wipro board also approved a revised capital allocation policy that increases the committed payout percentage to 70 per cent or above in a block of three years.
“The year 2024 was marked by macroeconomic challenges. 2025 looks more hopeful and resilient. Clients are cautiously optimistic, and discretionary spending is slowly coming back,” Pallia said during the company’s earnings conference.
Wipro also sought to downplay any concerns around changes anticipated in the H-1B visa regime in the US saying a significant portion of its employee base there, are American locals.
“We have been hiring a large number who are locals in the US and today a significant portion of our employee base in the US is local…We have a good inventory of H-1B visas, so we can move people whenever required…if and as demand goes up, the supply side will not be a constraint for us,” Saurabh Govil, chief human resources officer of Wipro said.
Wipro’s headcount reduced by 1,157 in Q3FY25, reversing two-quarters of employee adds. The employee tally stood at 2,32,732 in Q3 FY25, as against 2,33,889 in Q2FY25, and 2,39,655 in Q3FY24.
The company expects fresher hiring to be between 10,000-12,000 for the next financial year.
Govil said that the company has honoured all pending offers, it had made.
“At the end of Q3 we have closed on all the backlog, and there are no pending offers from the past. We have honoured all pending offers,” he said.
The Bengaluru-headquartered tech major said it closed 17 large deals with a total value of USD 1 billion. The IT services segment revenue was at USD 2,629.1 million, a decrease of 1.2 per cent sequentially and 1 per cent year-on-year.
Wipro shares closed at ₹281.85 apiece on Friday,2.15 per cent lower than the previous close – results came after the close of market hours.
Wipro’s Q3 results wrap up the Q3 earnings season for Tier-I Indian IT services companies. On Thursday, the second-largest tech firm Infosys reported 11.46 per cent rise in the third quarter net profit on pick-up in demand, which also prompted it to raise its annual sales forecast for a third time this fiscal year.
Net profit rose to ₹6,806 crore in October-December – the third quarter of April 2024 to March 2025 fiscal (FY25), from ₹6,106 crore a year back.
India’s largest IT services company TCS, last week, reported an 11.95 per cent jump in its December quarter net profit to ₹12,380 crore. Earlier this week, HCLTech delivered a 5.54 per cent rise in consolidated net profit to ₹4,591 crore for the December quarter, and expressed optimism about improvement in the demand environment, as it raised the revenue growth guidance.
