Wipro Cautions On Revenue Amid Trade War Uncertainty

Wipro has guided for a $2.50 billion- $2.557 billion revenue from its IT services business for April-June. This implies a sequential decline of 1.5% to 3.5% in constant currency terms. 

The company closed the financial year with net profit of ₹35.70 billion in January-March, marking a 26% increase over the same period last year. Gross revenue from operations rose marginally year-on-year to ₹225.04. billion. Operating margins for IT services stood at 17.5% in March quarter, flat sequentially, while the full-year margin was 17.1%. The board declared a final dividend of ₹104.50 per share for 2024-25.

Total bookings for January-March reached $3,955 million, up 13.4% in constant currency terms compared to the previous quarter. Large deal bookings grew by 48.5% year-on-year, reaching $1.8 billion. According to Chief Executive Officer Srini Pallia, the company closed 17 large deals during the quarter, with strong traction observed in client demand for cost optimisation, speed, and AI-led efficiencies.

The company intends to integrate generative AI into both existing managed services and new client solutions. Management expects further clarity on generative AI’s financial impact over the next three to four quarters.

In terms of sectoral outlook, Wipro continues to face challenges in the BFSI segment in Europe, driven by client-specific issues and broader macroeconomic pressures. The imposition of tariffs by the US administration and retaliatory measures in Europe have introduced further uncertainty, affecting client sentiment and growth trajectories, particularly in key export-focused sectors.

Chief Financial Officer Aparna Iyer indicated that macroeconomic volatility and trade tensions will continue to exert pressure on revenue performance in 2025-26. However, margin maintenance remains a priority. For 2024-25, Wipro reported net operating cash flows of nearly $2 billion, representing 128.2% of net income, reflecting financial discipline amid subdued revenue growth.

Chief Human Resources Officer Saurabh Govil said the company hired 10,000 freshers in 2024-25, with plans for further intake contingent on project deployment visibility. While wage hikes were implemented in September, decisions on further increments will be taken closer to the relevant cycle, depending on the external environment.

The company has maintained campus hiring but remains cautious about onboarding timelines, citing past instances of delay. Wipro will continue investing in global talent and expanding consulting and AI capabilities, aligning with evolving client needs.

While the external environment remains unpredictable, the company’s focus will remain on cost efficiency, deal execution, and capability enhancement. Management intends to remain closely aligned with client expectations while driving disciplined growth.