East Brunswick, N.J., United States & Bangalore, Karnataka, India:
- Revenue grows 0.1% QoQ, above upper end of guidance.
- Operating margin 12 quarter high at 17.5%; Expands 0.7% QoQ.
- Net income grows 24.5% YoY and 4.5% QoQ; EPS growth of 24.4% YoY.
- Operating cash flows at 146.5% of net income.
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended December 31, 2024.
Highlights of the Results
Results for the Quarter ended December 31, 2024:
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- Gross revenue was at Rs 223.2 billion ($2,608.9 million1), an increase of 0.1% QoQ and 0.5% YoY.
- IT services segment revenue was at $2,629.1 million, decrease of 1.2% QoQ and 1.0% YoY.
- Non-GAAP2 constant currency IT Services segment revenue increased 0.1% QoQ and decreased 0.7% YoY.
- Total bookings3 was at $3,514 million. Large deal bookings4 was at $961 million, an increase of 6.0% YoY in constant currency2.
- IT services operating margin5 for the quarter was at 17.5%, an increase of 0.7% QoQ and 1.5% YoY.
- Net income for the quarter was at Rs 33.5 billion ($392.0 million1), an increase of 4.5% QoQ and 24.5% YoY.
- Earnings per share for the quarter was at Rs 3.21 ($0.041), an increase of 4.6% QoQ and 24.4% YoY.
- Operating cash flows of Rs 49.3 billion ($576.4 million1), an increase of 3.0% YoY and at 146.5% of Net Income for the quarter.
- Voluntary attrition was at 15.3% on a trailing 12-month basis.
- Interim dividend declared of Rs 6 ($0.0701) per equity share/ADS.
- Capital allocation policy revised to increase the payout percentage from 45% – 50% to 70% or above of the net income cumulatively on a block of 3-year period.
Outlook for the Quarter ending March 31, 2025
We expect revenue from our IT Services business segment to be in the range of $2,602 million to $2,655 million*. This translates to sequential guidance of (-)1.0 % to 1.0 % in constant currency terms.
*Outlook for the Quarter ending March 31, 2025, is based on the following exchange rates: GBP/USD at 1.27, Euro/USD at 1.06, AUD/USD at 0.65, USD/INR at 84.29 and CAD/USD at 0.71
Performance for the Quarter ended December 31, 2024
Srini Pallia, CEO and Managing Director, said, “In a seasonally weak quarter, our strong in quarter execution helped us deliver above the top end of our revenue guidance. We also achieved our highest margins in the past three years while continuing to invest in our people. We closed 17 large deals with a total value of $1B. We are advancing steadily and investing decisively to lead our clients in an AI-driven future.”
Aparna Iyer, Chief Financial Officer, said, “We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5%. Our EPS grew 24.4% YoY and operating cash flow was at 146.5% 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% or above in a block of 3 years. In addition, board has also declared an interim dividend of INR 6 per share.”
We expect revenue from our IT Services business segment to be in the range of $2,602 million to $2,655 million*. This translates to sequential guidance of (-)1.0 % to 1.0 % in constant currency terms.
*Outlook for the Quarter ending March 31, 2025, is based on the following exchange rates: GBP/USD at 1.27, Euro/USD at 1.06, AUD/USD at 0.65, USD/INR at 84.29 and CAD/USD at 0.71
Performance for the Quarter ended December 31, 2024
Srini Pallia, CEO and Managing Director, said, “In a seasonally weak quarter, our strong in quarter execution helped us deliver above the top end of our revenue guidance. We also achieved our highest margins in the past three years while continuing to invest in our people. We closed 17 large deals with a total value of $1B. We are advancing steadily and investing decisively to lead our clients in an AI-driven future.”
Aparna Iyer, Chief Financial Officer, said, “We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5%. Our EPS grew 24.4% YoY and operating cash flow was at 146.5% 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% or above in a block of 3 years. In addition, board has also declared an interim dividend of INR 6 per share.”
