FILE PHOTO: Wipro Ltd logo
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Dado Ruvic
Amidst rising macroeconomic concerns, IT major Wipro is set to announce its financial results for Q4FY25 on April 16. The company is also expected to guide for -1% to 1% growth for Q1FY26, mirroring Q4, as US market uncertainty weighs on decision-making. Here are some other key considerations:
Revenue growth
In Q3, revenue from operations stood at ₹22,319 crore, registering a growth of 0.1 per cent QoQ. A poll of brokerages suggests the company is likely to report revenue of ₹22,208–₹22,670 crore in Q4FY25, at a QoQ growth of -0.4 per cent to 0.8 per cent in cc terms.
Margins and Guidance
Wipro is expected to guide for -1 per cent to 1 per cent QoQ CC growth for Q1FY26, similar to Q4FY25, given the return of uncertainty and slowdown in decision-making in the US.
An ICICI Securities report attributed the 22bps QoQ margin improvement to the shift of roles from on-site to offshore, employee pyramid optimisation, improving productivity in fixed price contracts, and margin synergies from the integration of newer acquisitions.
Brokerage firm JM Financial Institutional Securities said in its report, “Wipro’s growth will still be the best among the top five, likely aided by sustained momentum in CAPCO, which will be partially offset by softness in Europe/ E&U. We expect its margins to remain stable as the wage hike is behind.”
Deals and Conversions
In Q3FY25, Wipro’s total bookings stood at $3.5 billion, and large-deal bookings were at $0.96 billion. For this quarter, the company is expected to report a healthy large deal TCV, supported by the GBP 500-million deal with Pheonix Group.
With improved client conversations, the large deal TCV and total TCV are likely to be in line with the quarterly average run-rate of $1.1 billion and $3.5 billion, respectively. This should also improve revenue visibility for the company getting into FY26.
Hiring & Attrition
At the beginning of FY25, Wipro announced plans to hire 10,000-12,000 employees during the fiscal. However, it is likely to remain cautious about hiring given the limited demand visibility.
Published on April 14, 2025
