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News » Wipro Q3 profit rises 24.5%, margins hit 3-year high

Wipro Q3 profit rises 24.5%, margins hit 3-year high

wipro-q3-profit-rises
Photo from Vijay Sartape/ NDTV Profit

BENGALURU, INDIA — Wipro, a global leader in technology services and consulting, recently reported its financial results for the quarter ended December 31, 2024. 

The company posted a 24.5% year-on-year (YoY) increase in net income, reaching ₹33.5 billion (US$392 million), and a 4.5% rise quarter-on-quarter (QoQ). Revenue grew by 0.1% QoQ to ₹223.2 billion (US$2.60 billion), surpassing the upper end of its guidance, while operating margins hit a 12-quarter high of 17.5%, expanding by 0.7% QoQ.

Srini Pallia, CEO and Managing Director, credited the performance to disciplined execution: “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.”

IT services revenue and major deal wins

The IT services segment reported revenue of US$2.62 billion, reflecting a decline of 1.2% QoQ and 1.0% YoY. However, non-GAAP constant currency IT services revenue grew by 0.1% QoQ. 

Total bookings for the quarter reached US$3.51 billion, with large deal bookings increasing by 6% YoY to US$961 million. Wipro closed 17 large deals valued at US$1 billion during the quarter.

Key wins included partnerships with a U.S.-based health insurer for enterprise transformation and a leading Indian private bank for modernizing its core banking system.

Profitability and cash flow highlights

Earnings per share (EPS) rose by 24.4% YoY to ₹3.21 (US$0.04). Operating cash flows were robust at ₹49.3 billion (US$576.4 million), representing 146.5% of net income for the quarter.

Aparna Iyer, Chief Financial Officer, emphasized financial discipline: “We expanded margins for a fourth consecutive quarter, enabling us to achieve our target margin of 17.5%. Our EPS grew 24.4% YoY and operating cash flow was at 146.5% of net income.”

Dividend and revised capital allocation policy

The board declared an interim dividend of ₹6 (US$0.069) per equity share/ADS and approved a revised capital allocation policy that raises the payout percentage to at least 70% of net income over three years.

Outlook for Q4 FY25

For the March quarter, Wipro expects IT services revenue between US$2.60 billion and US$2.65 billion, implying sequential growth guidance of -1% to +1% in constant currency terms.

Wipro’s focus on operational efficiency, strategic investments in AI-driven solutions, and enhanced shareholder returns positions it well for sustained growth in an evolving market landscape.

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