Wipro registered a 9.8% YoY increase in its consolidated net profit to 3,336.5 crores in its June quarter (Q1 FY25). This was 3,036.6 crore in the previous year in the same period. Operation income stood at 22,134.6 crore, increased by a slight margin against 21,963.8 crore in Q1 FY24. The company posted the financial update in the form of a regulatory filing.
Wipro MD and CEO Srini Pallia said in a statement that the quarter indicator was macroeconomic uncertainty which caused customers to concentrate on cost effectiveness. In response, Wipro entered into strategic partnerships with clients, and as a result, there were 16 large deals during the period, including two mega deals.
Srini Pallia highlighted that digital transformation was one of the clients' priorities, especially with artificial intelligence as one of the core approaches. He said that AI is not Wipro was no longer experimental and was making a significant, measurable difference within client ecosystems.
The company utilized its online products and services to meet the demand for more efficient and faster services. This was one way of adding momentum to the deal, as it helped maintain momentum in the pipeline, a factor useful in establishing the business's flexibility.
In the next quarter (Q2 FY 25) Wipro provided revenue guidance of -1% to 1% on a constant currency basis. It forecasts IT services income of 2,560 million to 2,612 million dollars. The projection indicates cautious growth due to client budget pressures.
Despite the flat guidance, Wipro maintains optimism for the future, bolstered by its digital investments and strong client relations. The company anticipates a stabilization of the market in the second half of the financial year, as enterprises gradually begin to spend discretionarily.
After the results, Wipro's shares fell by 0.93% to close at 260.25 on the BSE. The conservative forecast of earnings for the next quarter offset the positive growth in profits. Analysts are closely monitoring Wipro's ability to sustain its deals amidst broader economic challenges.