BENGALURU, INDIA – IT services giant Wipro reported a net profit of ₹3,036.6 crore ($364.39 million) for the first quarter of the fiscal year, marking a 5% increase from the previous year. This profit also saw a 6.2% rise quarter-on-quarter, surpassing Bloomberg’s estimate of ₹2,931 crore.
However, the company’s revenue did not meet expectations, with a 3.7% decline to ₹21,964 crore ($2.64 billion) compared to ₹22,831 crore ($2.74 billion) in the same quarter last year. This drop was attributed to weak performance in certain regions.
Market outlook and revenue guidance
Srini Pallia, CEO and Managing Director, stated: “In Q1, we did not see any significant shift in the demand environment. Clients remain cautious and discretionary spending continued to be muted. But as we move into the second quarter, we believe we are now in a better position compared to the start of quarter one.”
Despite the challenges, Wipro slightly improved its revenue guidance for the second quarter of FY25 to a range of -1% to +1%. This comes after a previous quarter’s guidance cut, which ranged from -1.5% to 0.5%.
Hiring and workforce developments
Wipro has resumed hiring freshers from campuses after a year-long hiatus. Chief Human Resources Officer Saurabh Govil announced that the company onboarded about 3,000 freshers in the first quarter and plans to hire 10,000 to 12,000 more this fiscal year.
“We will complete all backlogs of offers made this fiscal, a commitment to the people we have offered,” Govil added.
In the first quarter, Wipro’s workforce grew by 337 employees, bringing the total headcount to 234,391. Attrition rates slightly declined to 14.1% in the June quarter.
CFO Aparna Iyer highlighted strong operating cash flows at 131.6% of net income, increasing the company’s current investment and cash balance to $5.4 billion.
Sector performance and AI training
Among industry sectors, BFSI (banking, financial services, and insurance) maintained positive momentum, growing 0.5% sequentially in Q1. The Consumer business saw a 1.6% growth driven by deal flow. However, the Manufacturing and Energy & Utilities sectors experienced declines of 3% and 6.3%, respectively.
On the topic of artificial intelligence, Pallia mentioned that Wipro has provided foundational AI training to over 225,000 employees, with an additional 30,000 receiving advanced AI training.
Overall, while Wipro has faced revenue challenges, the company remains committed to growth through strategic hiring and investment in new technologies.
