BANGALORE, India – April 16, 2025 – Wipro Limited (NYSE: WIT), a global leader in technology services and consulting, announced its financial results for the fourth quarter and fiscal year ended March 31, 2025, showcasing disciplined margin growth, resilient profitability, and a surge in large-scale client engagements.
Financial Highlights: A Year of Profitability Amid Revenue Softness
Wipro’s net income for FY25 rose to ₹131.4 billion (1.54 billion), marking 8.91.54 billion) an 18.9417.8 million). Despite a slight 0.7% YoY decline in gross revenue (₹890.9 billion/$10.4 billion), the company expanded its operating margin to 17.1% for FY25, up 90 basis points YoY, reflecting rigorous cost optimisation.
The IT services segment, which contributes over 99% of revenue, saw a 2.3% YoY decline in constant currency revenue (10.51 billion).However, large deal bookings surged 48.510.51 billion. However, large deal bookings surged∗∗48.51.76 billion) and 17.5% for FY25 ($5.4 billion), signalling strong future revenue pipelines. Operating cash flow remained robust at 128.2% of net income for the year, underscoring Wipro’s cash-generating prowess.
Leadership Insights: Execution Rigour and Client Focus
CEO Srini Pallia highlighted the company’s strategic momentum: “FY25 closed with two mega deals, improved client satisfaction, and investments in AI and global talent. In a cautious macroeconomic climate, we’re committed to consistent, profitable growth.”
CFO Aparna Iyer emphasised margin resilience: “Even with revenue headwinds, we expanded margins by 110 basis points YoY in Q4. Our net income growth and nearly $2 billion in FY25 operating cash flow demonstrate operational discipline.”
Strategic Wins: Diversification Across Industries
Wipro secured 12 major deals in Q4, spanning insurance, healthcare, energy, and fintech. Notable wins include:
- A 10-year contract with the UK’s Phoenix Group to modernize pension administration using AI and cloud technologies.
- Partnerships with U.S. healthcare payers to scale Medicare operations and automate financial reconciliation.
- Expansion of cloud and AI-driven managed services for a European retail giant and a North American energy corporation.
These deals align with Wipro’s focus on high-margin, long-term contracts and digital transformation services.
Challenges and Outlook
While FY25 showcased profitability, the IT services revenue dip reflects broader industry pressures, including reduced tech spending in key sectors. For Q1 2026, Wipro forecasts a 1.5%–3.5% sequential decline in IT services revenue (2.5–2.5–2.55 billion), citing currency volatility and client caution.
Dividend and Analyst Recognition
The board declared a final dividend of ₹6 per share for FY25. Wipro also earned accolades as a Leader in 13 industry reports, including Gartner’s Magic Quadrant for Outsourced Digital Workplace Services and Everest Group’s AI and analytics assessments.
Segment Breakdown
- IT Services: Dominated by Banking, Financial Services, and Insurance (34.3% of revenue), with the Americas contributing 62% of total revenue.
- IT Products: A minor segment, reporting a $2 million annual loss amid declining hardware demand.
Workforce and Efficiency
Employee attrition dropped to 15% (TTM), while utilization excluding trainees improved to 85.6%. Offshore revenue accounted for 60.1% of IT services, highlighting cost efficiency.
Looking Ahead
Wipro’s blend of margin discipline, strategic deal momentum, and investments in AI positions it to navigate macroeconomic uncertainties. However, the muted Q1 guidance suggests near-term challenges, requiring continued client-centric innovation.
For detailed financials and reconciliations, visit Wipro’s investor relations page at www.wipro.com/investors.
Key Takeaways:
- Profitability Up: Margins and net income grew despite revenue softness.
- Deals Drive Growth: Large deal bookings surged, ensuring future revenue stability.
- Cash Strong: Operating cash flow exceeded net income, showcasing financial health.
- Cautious Outlook: Q1 guidance reflects macroeconomic prudence but long-term strategic confidence.
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