July 20, 2024
New Delhi, India
Wipro Q1 Results
Wipro, a leading IT services provider, released its Q1 FY25 results on July 19, 2024, reporting a notable 5.2% year-on-year (YoY) increase in consolidated net profit. Despite a decline in revenue, the company’s robust margin expansion and strong operating cash flows marked key highlights of the quarter.
Key Financial Highlights:
- Net Profit: Wipro’s consolidated net profit rose 5.21% YoY to Rs 3,036.60 crore in Q1 FY25, compared to Rs 2,886 crore in the same quarter last year.
- Revenue: The company’s revenue fell 3.79% YoY to Rs 21,963.80 crore in Q1 FY25, down from Rs 22,831 crore in the corresponding quarter last year. IT services revenue was Rs 21,896 crore.
- Dollar Revenue: In dollar terms, IT services revenue was $2,625.9 million, down 1.2% sequentially and 5.5% YoY. In constant currency terms, IT services segment revenue declined 1% QoQ and 4.9% YoY.
Operational Metrics:
- Operating Margin: Wipro’s IT services operating margin expanded to 16.5% in the June quarter, up 0.1% QoQ and 0.4% YoY.
- Cash Flows: The company’s operating cash flows remained strong at 131.6% of net income.
Future Guidance:
- Q2 FY25 Revenue: Wipro expects revenue from its IT services business segment to be in the range of $2,600 million to $2,652 million for the September quarter. This translates to a sequential guidance of -1% to +1% in constant currency terms.
Order Bookings:
- Total Order Bookings: The total order bookings for the quarter stood at $3,284 million.
- Large Deal Bookings: Large deal bookings amounted to $1,154 million, down 3.1% QoQ and 3.6% YoY.
Company Commentary: Wipro highlighted that its IT services segment revenue in Q1 FY25 declined by 1% QoQ and 4.9% YoY in constant currency terms. The company’s IT services operating margin saw a slight improvement, reflecting efficiency gains.
Comparative Analysis:
- Revenue Decline: Wipro’s revenue decline of 3.79% YoY reflects broader market challenges and client spending trends.
- Profit Growth: The net profit increase of 5.2% YoY underscores Wipro’s focus on cost management and operational efficiency.
Conclusion: Wipro’s Q1 FY25 results showcase a mix of growth in profitability and challenges in revenue generation. The company’s robust operating margin and strong cash flows highlight its resilience in a fluctuating market environment. As Wipro looks ahead to Q2 FY25, its revenue guidance indicates cautious optimism amid ongoing market dynamics.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
