Wipro , a leading Indian IT services company, has reported a robust performance in its latest quarterly results, showcasing resilience and growth amid challenging market conditions. The company's financial highlights and strategic initiatives paint a picture of steady progress and optimism for the future.

Financial Performance

Wipro delivered impressive quarterly results, with a 10.9% year-on-year growth in net profit, despite absorbing restructuring charges. This growth demonstrates the company's ability to maintain profitability while navigating through organizational changes.

The company's operating margins showed improvement, reaching 17.30%, which represents an 80 basis points increase year-on-year. This margin expansion indicates enhanced operational efficiency and cost management.

Strong Order Book and Deal Wins

One of the most significant highlights of Wipro's performance is its substantial order book, which stands at $5.00 billion. This includes a noteworthy $2.75 billion from a single large deal, underscoring the company's ability to secure high-value contracts.

Wipro's success in winning deals is further evidenced by:

• 16 large deals won during the quarter
• A 24% increase in large deal bookings
• A 50% sequential rise in deal wins

Revenue and Sector Performance

While Wipro reported strong deal wins, its IT services dollar revenue experienced a slight decline of 0.30% sequentially. However, the company's management remains optimistic, expecting a stronger second half based on current bookings and deal execution timelines.

Sector-wise performance shows mixed results:

• Softness in manufacturing, retail, and consumer sectors, attributed to tariff impacts
• Strong pipeline momentum in banking and financial services
• 6% year-on-year growth in the Capco consulting unit

Shareholder Returns and Dividend

The company continues to prioritize shareholder returns. Wipro's board has approved an interim dividend of Rs 5.00 per share. This brings the total payouts to $1.30 billion over the past six months, reflecting the company's commitment to delivering value to its shareholders.

Workforce and Technology Initiatives

Wipro is actively investing in its workforce and technology capabilities:

• Employee attrition remains stable at around 15%
• Significant investment in Gen-AI training across the workforce
• Pursuit of both build-and-buy strategies for talent acquisition

Outlook

Despite some challenges, Wipro's management expresses confidence in a stronger second half of the year. This optimism is based on the current robust order book and anticipated timelines for deal execution.

The company's focus on securing large deals, improving operational efficiency, and investing in emerging technologies like Gen-AI positions it well for future growth in the dynamic IT services market.

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global technology services and consulting company, has announced its financial results for the first quarter. The company reported a mixed performance with strong deal bookings, despite a slight dip in revenue and profit.

Financial Highlights

Deal Momentum and Bookings

Wipro demonstrated strong deal momentum in Q1:

• Total bookings reached $4,971.00 million, up by 50.7% YoY in constant currency.
• Large deal bookings hit $2,666.00 million, showing a significant increase of 130.8% YoY in constant currency.

Strategic Initiatives and Client Wins

The company secured several strategic deals across various sectors:

• A leading global technology company chose Wipro as its exclusive strategic partner for transforming and scaling engineering and application support operations.
• A US-based global technology company awarded Wipro a contract to enable innovation at scale for its proprietary operating system.
• A major US-based hospitality company selected Wipro to enhance performance across their customer lifecycle.

Dividend Declaration

The Board of Directors declared an interim dividend of ₹5.00 ($0.06) per equity share/ADS.

Management Commentary

Srini Pallia, CEO and Managing Director, commented on the results: "In a quarter shaped by macroeconomic uncertainty, clients prioritized 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."

Aparna Iyer, Chief Financial Officer, added: "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% of our net income."

Market Response

Despite the decline in profit and margins, Wipro's performance met market expectations. The company's shares rose 4.34% following the Q1 results announcement. The strong deal wins prompted positive outlooks from brokers.

Outlook

For the next quarter, Wipro expects revenue from its IT Services business segment to be in the range of $2,560.00 million to $2,612.00 million. This translates to a sequential guidance of -1.0% to 1.0% in constant currency terms.

Wipro continues to focus on delivering value to its clients through digital transformation, AI integration, and strategic partnerships. The company's strong deal pipeline and focus on operational efficiency position it well for future growth in an evolving global technology landscape.