Wipro Q1 Profit up 11% to INR 3,330 Crore, Q2 Guidance at -1% to 1% The attrition rate, on a last twelve-month basis, increased to 15.1 per cent from 14.1 per cent in the year-ago period and 15 per cent in the preceding three months.
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IT services major Wipro forecast a sequential revenue growth guidance of -1.0 to 1.0 per cent in constant currency terms for the second quarter ended September, based on current visibility and a strong order book, healthy pipeline, and robust AI-powered consulting led solutions.
The Bengaluru-based company reported a net profit of INR 3,330 crore for the first quarter ended June, up 11 per cent from a year ago.
The revenue for the June quarter rose 0.8 per cent from the year-ago period to INR 22,135 crore. The revenue in dollar terms declined 2.3 per cent sequentially in constant currency to USD 2.59 billion while the total contract value (TCV) of deals for the first quarter stood at USD 2.7 billion.
A substantial portion of the large deals are from the top 10 clients, the management said at a press conference during the earnings.
"In a quarter shaped by macroeconomic uncertainty, clients prioritised efficiency and cost optimization. We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from last quarter and supported by a strong pipeline, we are well positioned for the second half. AI is no longer experimental - it's central to our clients' strategies, and we are delivering real impact at scale," said Srini Pallia, CEO and Managing Director, Wipro. "Returning to profitable growth remains our priority."
The Indian IT services industry has been facing challenges over the past few quarters due to continued caution around discretionary spending, delayed decision-making, and tighter project scrutiny weighing on deal ramp-ups and execution.
Operating margins for the June quarter expanded to 17.3 per cent from 16.5 per cent in the corresponding quarter of the previous year but contracted 20 basis points from 17.5 per cent in preceding three months.
"We expanded our operating margins by 80 basis points on YoY basis. Our cash flow conversion remained strong with operating cash flows being at 123 per cent of our net income. The board also declared an interim dividend of INR 5 per share. With this, the total cash returned to shareholders over the last 6 months is more than USD 1.3 billion," said Aparna Iyer, Chief Financial Officer, Wipro.
The attrition rate, on a last twelve-month basis, increased to 15.1 per cent from 14.1 per cent in the year-ago period and 15 per cent in the preceding three months. It reported a total employee strength of 233,232 employees as of the June quarter.
Wipro declared its results on Thursday after markets hours. Ahead of the results, shares of the company closed down 0.93 per cent at INR 260.25 on the BSE.
