Wipro (WIPRO) Q1 24/25 earnings summary

Executive summary

• IT Services revenue for Q1 FY25 was $2.63 billion, down 1.2% sequentially and 5.5% year-over-year in reported terms, within guidance range.

• Net income for Q1 was INR 30 billion, up 6% sequentially and 4.6% year-over-year; EPS at INR 5.75, up 10% year-on-year.

• Operating margin improved to 16.5%, up 0.1% quarter-on-quarter and 0.4% year-on-year, despite muted discretionary spending.

• Large deal bookings exceeded $1 billion, with 10 large deals signed, including notable wins in telecom and automotive.

• Strategic focus areas include large deal creation, strengthening key client relationships, AI-powered solutions, talent development, and delivery excellence.

Financial highlights

• IT services revenue declined 1.2% sequentially in reported currency, 1% in constant currency.

• Operating income for IT Services was ₹36,057 million, down 0.4% QoQ and 1.3% YoY.

• Cash flow from operations was $479 million, 132% of net income; cash and investments at $5.4 billion.

• Free cash flow for the quarter was ₹37,376 million, 123.1% of net income.

• Other income, net of finance expenses, grew 21% quarter-on-quarter and year-on-year.

Outlook and guidance

• Q2 FY25 revenue guidance: sequential growth of -1.0% to +1.0% in constant currency, with revenue expected between $2,600 million and $2,650 million.

• Margins expected to remain in a narrow band with an upward bias.

• Large deal ramp-ups expected to contribute more meaningfully in coming quarters.

• The company is assessing the impact of new IFRS standards for future reporting periods.