Wipro forecasts weak outlook; warns of cautious clients

BENGALURU: Amid uncertainty and macroeconomic headwinds, IT services firm Wipro expects clients to take a more measured approach, especially on large transformation programmes and discretionary spending.

Due to this, the company has guided revenue to be in the range of (-)3.5% to (-)1.5% in constant currency terms for the June Quarter (Q1FY26).

Surpassing Street estimates, it reported a 25.9% y-o-y increase in consolidated net profit at Rs 3,569.6 crore crore for the quarter ended March 2025 compared to Rs 2,835 crore in the same period last year. Its income from operations stood at Rs 22,504 crore, a 1.33% increase compared to Rs 22,208 crore in the same quarter last year.

For the full year FY25, its consolidated total income stood at Rs 92,972.4 crore compared to Rs 92,391.1 crore.

In a post-earnings conference, Srini Pallia, CEO and MD said the global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that.

"Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously. They are focused on cost, speed, and AI-led efficiency -- and that’s exactly where we are leaning in," he said.

In Q4, the company closed 17 large deals with a total value of $1.8 billion across markets and sectors and for the full year, it closed 63 large deals for a total value of $5.4 billion, which is a year-on-year growth of 17.5%, he said.

The company's IT services operating margin in Q4 stood at 17.5%, an expansion of 1.1% y-o-y. CFO Aparna Iyer said our endeavour will be to maintain the margin in a narrow band in the coming quarters.

Wipro, which added just over 600 people in Q4FY25, remains cautious on hiring due to the uncertain environment. Chief Human Resources Officer (CHRO) Saurabh Govil said they will decide on wage hikes closer to the next appraisal cycle. Last year the company provided a wage hike in September.

In FY25, it onboarded about 10,000 freshers and the company did not specify hiring guidance in the current fiscal.

"(On hiring), We don't guide for a full year, we will take it as it comes from a growth perspective," he added.