Wipro profit beats estimates, rises 5.2%

Bengaluru-based IT services major Wipro posted a net profit of ₹3,036.6 crore for the first quarter of the current financial year (FY25), up 5.2 per cent from the year-ago period.

- SHIVANI SHINDE & ANEEKA CHATTERJEE

Profit was up 6.2 per cent quarter-on-quarter (Q-o-Q) and beat Bloomberg estimates of ₹2,931 crore.

Like its larger peers, India's fourth largest IT services firm also signalled better client spending as it marginally upped its revenue guidance for the second quarter of FY25 from -1 per cent to +1 per cent. The company had cut its revenue guidance in the last quarter and guided for revenue in the range of -1.5 per cent to 0.5 per cent.

Revenue for the March quarter was down 3.79 per cent from the year-ago period to ₹21,963.8 crore. This was below Bloomberg estimates that pegged the revenue at ₹22,237.4 crore. On a sequential basis, revenue growth was down 1.1 per cent as pressure continued on discretionary spending.

IT services segment revenue was at $2,625.9 million, a decrease of 1.2 per cent Q-o-Q and a 5.5 per cent decline Y-o-Y. The company announced total booking at $3.2 billion. Large deal bookings were at $1.1 billion, a decrease of 3.1 per cent Q-0-Q and 3.6 per cent Y-o-Y.

Wipro ADR fell by 9.3 per cent in opening trade as numbers remain largely in line while stock has jumped in near-past sessions.