Wipro Eyes Positive Outlook for 2025 Following Strong Q3 Results
Wipro, recognized as India’s fourth-largest IT services firm, has exceeded expectations for its third-quarter earnings, showcasing resilience amidst challenging economic conditions. Wipro’s CEO, Srinivas Pallia, expressed optimism about the upcoming year, suggesting a recovery from the macroeconomic difficulties experienced in 2024.
In an indication of brighter times ahead, Wipro’s U.S. shares increased by 0.9%, reaching $3.33 during premarket trading. The broader Indian IT landscape, valued at approximately $254 billion, has been navigating a period of subdued growth, influenced by global economic unpredictabilities and inflationary trends, prompting clients to curtail expenditures.
Industry Context and Expectations
Industry players anticipate beneficial outcomes from Donald Trump’s ascension to the U.S. presidency. This is particularly significant as top-tier Indian IT companies like Wipro derive substantial revenue from the U.S. market. Wipro’s rivals, such as Tata Consultancy Services, have also signaled expectations of rising demand.
Wipro’s Chief Financial Officer, Aparna Iyer, conveyed hopefulness about the new administration’s potential pro-business orientation facilitating increased momentum in the industry.
Third-Quarter Performance Highlights
Notable performance in the banking, financial services, and insurance sectors, accompanied by a strong presence in the Americas, has driven Wipro’s consolidated revenue to a 0.5% increase, amounting to 223.19 billion rupees ($2.58 billion) by the end of December. The company’s net profit surged by 24.5%, totaling 33.54 billion rupees, outperforming analysts’ predictions of 222.28 billion rupees in revenue and 30.71 billion rupees in profit.
| Metric | Actual | Predicted |
|---|---|---|
| Revenue (in billion rupees) | 223.19 | 222.28 |
| Net Profit (in billion rupees) | 33.54 | 30.71 |
Market and Segment Insights
Despite a positive trajectory, challenges persist in markets spanning Europe, Asia Pacific, the Middle East, and Africa, alongside declines in the energy, technology, and communication sectors during the third quarter.
Wipro anticipates modest revenue fluctuations in the upcoming quarter, with projections between -1% and 1% growth as compared to the previous quarter. Order wins were valued at $3.5 billion, a dip from the $3.79 billion recorded in the same period the previous year. Significantly, the company’s operating margin has expanded by 150 basis points year-over-year, achieving 17.5%, marking its highest in three years.
Reported by Haripriya Suresh in Mumbai and Sai Ishwarbharath in Bengaluru; Edited by Mrigank Dhaniwala.
