Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting, and business process services company, has announced its financial results for the first quarter ended June 30.

Financial Highlights

• Revenue from operations stood at ₹221.30 billion ($2.58 billion), down 2.3% year-over-year (YoY) in constant currency terms.
• Net income grew by 10.9% YoY to ₹33.30 billion ($388.40 million).
• IT Services segment revenue was $2,587.40 million, a decrease of 1.5% YoY.
• Operating margin for the IT Services segment expanded by 0.8% YoY to 17.3%.
• Earnings per share (EPS) increased by 10.8% YoY to ₹3.20 ($0.04).
• Total bookings for the quarter were $4,971.00 million, up 50.7% YoY in constant currency.
• Large deal bookings reached $2,666.00 million, showing a significant increase of 130.8% YoY in constant currency.

Dividend Declaration

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

Executive Commentary

Srini Pallia, CEO and Managing Director, said, "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, commented, "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."

Strategic Developments

Wipro continues to focus on AI-powered solutions and consulting-led engagements. The company reported winning several strategic deals across various industries, including technology, healthcare, and financial services. Notably, Wipro is leveraging AI to enhance its service offerings and internal operations.

Outlook

For the quarter ending September 30, Wipro expects revenue from its IT Services business segment to be in the range of $2,560.00 million to $2,612.00 million, translating to sequential guidance of -1.0% to 1.0% in constant currency terms.

Conclusion

Despite the challenging macroeconomic environment, Wipro has demonstrated resilience with growth in net income and operating margins. The company's focus on AI-powered solutions and large deal wins positions it for potential growth in the coming quarters. Investors will be watching closely to see how Wipro navigates the ongoing market uncertainties and capitalizes on the increasing demand for AI-driven transformations.

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global technology services and consulting company, announced its financial results for the first quarter ended June 30, revealing a mixed performance amidst a challenging macroeconomic environment.

Financial Highlights

• Revenue: Wipro reported a revenue of ₹221.30 billion ($2,581.60 million) for Q1, marking a decrease of 1.6% quarter-on-quarter (QoQ) and an increase of 0.8% year-on-year (YoY).
• IT Services Segment Revenue: The IT services segment revenue stood at $2,587.40 million, down 0.3% QoQ and 1.5% YoY. In constant currency terms, it decreased by 2.3% YoY.
• Operating Margin: The IT services operating margin for Q1 was 17.3%, showing an expansion of 0.8% YoY despite a slight contraction of 0.2% QoQ.
• Net Income: Net income for the quarter reached ₹33.30 billion ($388.40 million), representing a decrease of 6.7% QoQ but a significant increase of 10.9% YoY.
• Earnings Per Share (EPS): EPS for the quarter stood at ₹3.20 ($0.04), down 6.7% QoQ but up 10.8% YoY.

Large Deal Momentum and Bookings

Wipro demonstrated strong momentum in large deals, with total bookings of $4,971.00 million, up by 24.1% QoQ and 50.7% YoY in constant currency. Notably, large deal bookings surged to $2,666.00 million, showing an impressive growth of 49.7% QoQ and 130.8% YoY in constant currency.

Sector Performance

The company's performance varied across different sectors:

• Banking, Financial Services, and Insurance (BFSI) remained the largest contributor at 33.6% of total revenue.
• Consumer sector accounted for 18.6% of revenue.
• Technology and Communications contributed 15.5%.
• Health sector represented 14.6% of revenue.
• Energy, Manufacturing, and Resources made up 17.7% of the total revenue.

Strategic Market Units

Wipro's revenue distribution across its Strategic Market Units (SMUs) for Q1 was as follows:

Outlook

For the quarter ending September 30, 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.

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. The board also declared an interim dividend of INR 5 per share."

Conclusion

While Wipro faced some headwinds in revenue growth, the company demonstrated resilience through improved profitability, strong deal momentum, and strategic focus on AI-driven solutions. As the company approaches its 80th year, it continues to adapt to market challenges while investing in future capabilities and talent development.