Wipro Q3 results: Profit jumps 24% to Rs 3,354 crore; revenue slightly up

IT firm Wipro Ltd on Friday posted a 24.48 per cent rise, year-on-year (YoY), in its consolidated net profit for the December 2024 quarter (Q3 FY25). During the quarter under review, profit came at Rs 3,353.8 crore as against Rs 2,694.2 crore in the year-ago period.

Revenue from operations edged up 0.51 per cent to Rs 22,318.8 crore in Q3 FY25 from Rs 22,205.1 crore in the corresponding period last fiscal.

The company's large deal bookings figure was at $961 million, an increase of 6 per cent YoY in constant currency (CC) terms. IT services operating margin for the quarter was at 17.5 per cent, an uptick of 1.5 per cent YoY. Voluntary attrition was at 15.3 per cent on a trailing 12-month basis

Srini Pallia, CEO and Managing Director at Wipro, 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."

The IT firm also declared an interim dividend Rs 6 per equity share. Aparna Iyer, Chief Financial Officer at 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 grew 24.4 per cent YoY 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% or above in a block of 3 years. In addition, board has also declared an interim dividend of Rs 6 per share."

For the fourth quarter (Q4 FY25), the company expects 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 per cent to 1.0 per cent in constant currency terms, it added.

The quarterly results were announced post-market hours today. Earlier in the day, Wipro shares slipped 2.15 per cent to close at Rs 281.85.

Separately, Wipro appointed Pavan N Rao as the internal audit head with effect from January 20, 2025, in place of Raghuraman Ranganathan du to an internal role change.