Wipro's Q1FY25 net profit grows 5.2% to Rs 3,037 cr

The company slightly improved its revenue guidance for Q2 FY25 from a forecast of -1 percent to +1 percent, Business Standard reported.

Previously, it had revised its revenue outlook to between -1.5 percent and 0.5 percent.

Revenue for the March quarter was Rs 21,963.8 crore, down 3.79 percent year-on-year and 1.1 percent sequentially due to continued pressure on discretionary spending, according to the report.

In the IT services segment, revenue was $2,625.9 million, representing a 1.2 percent decrease quarter-on-quarter and a 5.5 percent decline year-on-year.

Total bookings for the quarter were $3.2 billion, with large deal bookings amounting to $1.1 billion, down 3.1 percent quarter-on-quarter and 3.6 percent year-on-year.

Wipro's ADR fell 9.3 percent in opening trade, as the numbers were largely in line with expectations, despite recent gains, the report said.

The IT services operating margin for the quarter was 16.5 percent, up 0.1 percent quarter-on-quarter and 0.4 percent year-on-year.

The company noted mixed performances across verticals: BFSI saw a 5.3 percent year-on-year decline but grew 0.3 percent sequentially.

The energy, natural resources, and utilities sector dropped 12 percent year-on-year and 6.5 percent quarter-on-quarter.

Manufacturing experienced a 15.7 percent year-on-year decline and a 3.4 percent quarter-on-quarter drop, while communication was the worst performer with a 21.9 percent year-on-year decline and a 2 percent quarter-on-quarter drop.

Despite challenges in sectors like manufacturing and communication, Wipro is improving its ability to secure larger clients.

The company hired 3,000 freshers during the quarter and plans to onboard those who have been waiting for over a year. It also intends to hire 10,000-12,000 freshers in FY25.

Voluntary attrition was 14.1 percent on a trailing 12-month basis, and utilization stood at 87.7 percent.