Wipro Q3 results: Net profit rises 24.5% to Rs 3,350 cr, beats estimates

Bengaluru-based IT services major Wipro posted a net profit of Rs 3,350 crore for the third quarter of the current financial year (Q3FY25), up 24.5 per cent from a year ago and 4.5 per cent quarter-on-quarter (Q-o-Q).

Revenue for the quarter under review was marginally up by 0.5 per cent from the year-ago period to Rs 22,320 crore. On a sequential basis, revenue growth was flat with an increase of 0.1 per cent.

The company’s third quarter performance has beaten the estimates of Bloomberg, which pegged revenue at Rs 22,221.4 crore and net profit at Rs 3,059.7 crore. The company’s IT services segment recorded revenue at $2.62 billion, registering a growth of 1 per cent Y-o-Y and 1.2 per cent Q-o-Q.

Wipro has forecast revenue from its IT services business segment to be in the range of $2,602 million to $2,665 million. This translates to sequential guidance of (-) 1.0 per cent to 1.0 per cent in constant currency (CC) terms.

The IT major announced that large deal bookings for the quarter was at $961 million, an increase of 6 per cent Y-o-Y. However, it was lower than the preceding quarter, when the company announced large deal bookings at $1.5 billion.

Srini Pallia, chief executive officer and managing director (CEO & MD) of the company, said: “Year 2024 was marked by macroeconomic challenges. In 2025, we are more hopeful and resilient. Our clients are cautiously optimistic and we see discretionary spend slowly coming back, while cost optimisation continues to remain, we also see significant opportunities in AI.”

Wipro’s operating margin came in at 17.5 per cent, an expansion of 0.7 per cent Q-o-Q and 1.5 per cent Y-o-Y. Pallia said that this is a 12-quarter high for the company.

Wipro’s Capco business, which also represents the consulting business, continued to see demand. Its order book grew by 9 per cent Y-o-Y and revenue was up 11 per cent Y-o-Y.

Growth across geographies and verticals was either subdued or saw a decline. Americas 1 grew 3.7 per cent Y-o-Y and 3.9 per cent sequentially on CC basis. Growth was primarily led by the health and technology sector. Americas 2 was up 1.2 per cent Y-o-Y and down 0.6 per cent sequentially. Europe was down 4.6 per cent Y-o-Y and de-grew 2.7 per cent Q-o-Q. APMEA (Asia Pacific, Middle East, and Africa) was also down by 8 per cent Y-o-Y.

The management also highlighted that three of its five industry sectors reported steady Y-o-Y growth. When it comes to verticals, BFSI (banking, financial services, and insurance) was up 3.4 per cent Y-o-Y, and down 3 per cent sequentially. Energy, natural resources, and utilities were down 9.3 per cent Y-o-Y and 1.5 per cent Q-o-Q.

Aparna Iyer, chief financial officer (CFO) of Wipro, said: “We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5 per cent. Our EPS (earnings per share) grew 24.4% Y-o-Y and operating cash flow was at 146.5 per cent of net income. We are pleased to share that the board has approved our revised capital allocation policy that increases the committed payout percentage to 70 per cent or above in a block of three years. In addition, the board has also declared an interim dividend of Rs 6 per share.”

On generative AI (GenAI), Pallia said the company is seeing good traction in its AI-led consulting business. He also added that the company has signed a deal with a global technology firm to create and scale a silicon platform. This is Wipro’s largest core silicon engineering win.

“We will continue to invest in AI education. Almost 50,000 employees now have advanced AI certification. We are also investing in AI tools and platforms across software development and processes. We are also early adopters of agentic AI,” Pallia said. Wipro will continue to add 2,500-3,000 freshers every quarter in FY26, which will mean a total fresher hiring of 10,000-12,000. For FY25 the company has added around 10,000 campus freshers. Sourabh Govil, chief human resource officer (CHRO), Wipro, said that they have honoured all the pending offers and cleared all backlogs.

Voluntary attrition was at 15.3 per cent, up from the preceding quarter’s 14.5 per cent, on a trailing 12-month basis. For Q3, Wipro’s headcount was down 1,157, lowering its total headcount to 232,732.