Wipro's Q3 Financial Overview

In the latest financial quarter, Wipro experienced a slight decline in revenue, reporting a 0.7% year-on-year drop in constant currency. Despite this, the company saw a marginal sequential growth of 0.1%, aligning with the upper end of its guidance. Wipro's CEO, Srini Pallia, expressed cautious optimism for 2025, highlighting a gradual return of discretionary spending and significant growth in AI investments.

Strategic Focus and Market Performance

Pallia emphasized the company's strategic focus on cost optimization and building a robust pipeline in Europe, particularly in the BFSI sector. Wipro's stock price reflected positive market sentiment, rising by 4% in early trade on the NYSE. Comparatively, TCS, Infosys, and HCLTech showcased stronger year-on-year growth in constant currency terms.

Operational Efficiency and Future Projections

Wipro's CFO, Aparna Iyer, attributed the company's ability to meet the upper end of its guidance to lower-than-expected furloughs in the December quarter. Looking ahead, Wipro anticipates a revenue growth between -1% and 1% for the March quarter. The company's total bookings reached $3.5 billion, marking a 7.3% increase year-on-year in constant currency terms, with a noticeable shift towards smaller and medium-sized deals.

Margin Improvement and Workforce Adjustments

The operating margin saw an improvement of 70 basis points, reaching 17.5%, thanks to enhanced operational efficiency in both core and consulting businesses, including Capco, acquired in 2021 for $1.5 billion. Despite a reduction in headcount by 1,157 employees, Wipro plans to onboard approximately 10,000 freshers in the current fiscal year, signaling a strategic adjustment in workforce management.