Wipro Ltd is a leading Indian tech company providing comprehensive IT services globally, including Business Process Outsourcing (BPO). The company offers a range of solutions such as systems integration, IT outsourcing, software development and maintenance, package implementation, and R&D services. Wipro is recognized as the first IT services company globally to achieve both PCMM Level 5 and SEI CMM Level 5 certifications. In India, it leads the corporate IT services market, offering network integration, software solutions, and IT services. Wipro serves clients across the Americas, Europe, the Middle East, and Asia Pacific, delivering integrated business, technology, and process solutions through innovation, process excellence, and a global delivery platform.
| Result Analysis: Wipro Ltd
(CMP: Rs 309.1) |
Result Update: Q3FY25 |
| Stock Details | |
| Market Cap. (Cr.) | 322689 |
| Equity (Cr.) | 2094 |
| Face Value | 2 |
| 52 Wk. high/low | 324.55/208.50 |
| BSE Code | 507685 |
| NSE Code | WIPRO |
| Book Value (Rs) | 77.72 |
| Sector | Computers-Software |
| Key Ratios | |
| Debt-equity: | 0.22 |
| ROCE (%): | 16.38 |
| ROE (%): | 14.60 |
| TTM EPS: | 12.81 |
| P/BV: | 3.97 |
| TTM P/E: | 25.76 |
Result Highlights:
- Wipro Ltd reported a financial performance for Q3FY25, with revenue of ₹22,318.80 crore, reflecting a 0.5% increase year-on-year compared to ₹22,205.10 crore in Q3FY24, and a marginal 0.07% growth QoQ basis from ₹22,301.60 crore in Q2FY25. The company’s profit after tax (PAT) for the quarter stood at ₹3,353.80 crore, marking a significant 24.5% YoY growth from ₹2,694.20 crore in Q3FY24. On a QoQ basis, PAT increased by 4.5% from ₹3,208.80 crore in Q2FY25.
- Wipro Ltd reported operating cash flows of ₹4930 Crores for the quarter, reflecting a 3.0% year-on-year (YoY) increase. The operating cash flows were 146.5% of net income, demonstrating strong cash generation relative to earnings for the period.
- Wipro Ltd secured 17 large deals across various verticals and geographies in Q3, including a significant vendor consolidation deal in retail and distribution. The focus was primarily on cost take-out and vendor consolidation engagements. Despite a decrease in deal tenure, the company saw strong annual contract value (ACV) growth. Additionally, Capco’s order book grew by 9% year-on-year.
- Wipro Ltd currently serves 1,371 active global clients, with its top customer contributing 3.0% of total revenue. The company maintains 22 strategic relationships valued at over $100 million, highlighting its strong client base and long-term partnerships across various industries and geographies.
- The IT Services operating margin for Wipro Ltd was 17.5%, reflecting a 0.7% quarter-on-quarter increase and a 1.5% year-on-year improvement, demonstrating consistent operational efficiency and profitability growth.
- The IT Services segment revenue for Wipro Ltd was $2,629.1 million. On a quarter-on-quarter basis, the revenue declined by 1.2%, and on a year-on-year basis, it decreased by 1.0% in reported terms, reflecting a slight contraction in performance.
Financial Performance:
Shareholding Pattern:
| Particulars (In %) | Q3FY25 | Q3FY24 |
| Promoters Group | 72.76 | 72.90 |
| FIIs | 8.75 | 7.69 |
| DIIs | 10.71 | 10.50 |
| Public and Other | 7.79 | 8.93 |
Management Commentary:
- Wipro Ltd is seeing continued growth in the BFSI sector, driven by discretionary spending in Capco and non-discretionary cost take-out and vendor consolidation deals. Management expects BFSI budgets to increase, particularly in the Americas 2 region, with strong growth in Health and AI-driven differentiation in APMEA.
- Wipro Ltd aims to maintain margins within a narrow range in Q4, leveraging fixed pricing, productivity improvements, pyramid optimization, and overhead cost reduction. Despite wage hikes and furloughs, margin improved due to strong execution in core and consulting businesses. The company also revised its capital allocation policy, increasing payouts to 70% of net income over three years.
- Wipro Ltd anticipates gradual demand recovery, with strong performance in BFSI and Healthcare, while EMR and consumer sectors are still recovering. Discretionary spending in BFSI is rising, particularly in the US. Q4 guidance reflects cautious optimism, with Capco’s order book growing 9% YoY.
Outlook:
Wipro Ltd is well-positioned for sustained growth, with strong performance in BFSI and Healthcare, despite challenges in EMR and consumer markets. Management expects demand recovery, particularly in North America, driven by increased discretionary spending in BFSI. The company aims to maintain stable margins in Q4 through cost optimization and productivity improvements. Capco business continues to show solid growth, and Wipro expects further expansion in its order book. Wipro’s revised capital allocation policy, increasing payouts to 70% of net income over three years, reflects confidence in future growth, especially in cloud and AI-driven solutions.
Results:
| Particulars (In Rs. Cr.) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ % | YoY % | FY24 | FY23 | YoY % |
| Sales | 22318.8 | 22301.6 | 22205.1 | 0.08 | 0.51 | 89760.3 | 90487.6 | -0.8 |
| Other Income | 1004.6 | 962.2 | 597.9 | 4.41 | 68.02 | 2630.8 | 2274.6 | 15.7 |
| Total Income | 23323.4 | 23263.8 | 22803 | 0.26 | 2.28 | 92391.1 | 92762.2 | -0.4 |
| Total Expenditure | 17779 | 17798.3 | 18006.8 | -0.11 | -1.27 | 73007.8 | 73648.6 | -0.9 |
| EBIDT | 5544.4 | 5465.5 | 4796.2 | 1.44 | 15.60 | 19383.3 | 19113.6 | 1.4 |
| Interest | 414.6 | 356.9 | 312.5 | 16.17 | 32.67 | 1255.2 | 1007.7 | 24.6 |
| EBDT | 5129.8 | 5108.6 | 4483.7 | 0.41 | 14.41 | 18128.1 | 18105.9 | 0.1 |
| Depreciation | 676.5 | 830.8 | 931.6 | -18.57 | -27.38 | 3407.1 | 3340.2 | 2 |
| EBT | 4453.3 | 4277.8 | 3552.1 | 4.10 | 25.37 | 14721 | 14765.7 | -0.3 |
| Tax | 1086.6 | 1051.2 | 851.5 | 3.37 | 27.61 | 3608.9 | 3399.2 | -29.2 |
| PAT | 3366.7 | 3226.6 | 2700.6 | 4.34 | 24.66 | 11112.1 | 11366.5 | -2.2 |
| EPS | 3.21 | 6.14 | 5.16 | -47.72 | -37.79 | 20.89 | 20.73 | 0.8 |
Segment Revenue:
| Particulars (In Rs. Cr.) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ % | YoY % |
| IT Services | |||||
| Americas I | 7201 | 6839.3 | 6858.1 | 5.3 | 5.0 |
| Americas 2 | 6812 | 6793.2 | 6654.1 | 0.3 | 2.4 |
| Europe | 5928.2 | 6182.1 | 6147.3 | -4.1 | -3.6 |
| APMEA | 2343.9 | 2381.1 | 2491.3 | -1.6 | -5.9 |
| Total of IT Services | 22285 | 22195.7 | 22150.8 | 0.4 | 0.6 |
| IT Products | 74.7 | 66.3 | 80.5 | 12.7 | -7.2 |
| Total Revenue | 22359.8 | 22262.0 | 22231.3 | 0.4 | 0.6 |
Source: Company website, EWL Research
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