WIPRO Q3 2024-2025 Call Highlights: BFSI Surge, Robust Pipeline, and Hiring Plans!

Wipro Ltd., an Indian multinational technology company that provides IT services, consulting, and business process services, in its Q3 earnings call discussed strong deal momentum, mainly in BFSI and EMR (Electronic Medical Records) segments, with discretionary spending showing positive signs in Americas. The company addressed that while BFSI budgets are expected to increase and Americas shows strong momentum, healthcare growth may slow down, with Europe and APMEA remaining soft. The company plans to maintain a high payout ratio of 70% plus through dividends and buybacks. For the upcoming fiscal year, Wipro plans to hire 10,000-12,000 freshers along with lateral hiring, while implementing new strategies in underperforming regions.

Wipro showed a mixed but positive performance, with revenue increasing marginally by 1% but exceeding analyst expectations, while net profit rose significantly by 25% year-over-year. The company achieved its highest EBIT margin in three years at 17.3% and demonstrated strong deal momentum, securing 17 large deals worth $1 billion and reporting total bookings of $3.514 billion, despite ongoing macroeconomic challenges. While the workforce saw a decline for the second consecutive quarter, decreasing by 1,157 to 2.32 lakh employees with attrition remaining above 15%. For Q4, Wipro provided modest guidance, projecting IT services revenue between $2,602 million to $2,655 million, representing a growth range of -1% to +1% in constant currency terms.

Continue Reading: Discover the Vital Insights from Wipro Ltd.’s Earnings Call!

Financial/Operational Metrics:

• Revenue: INR22,319 crore, up 1% YoY.
• Profit After Tax: INR3,367 crore, up 25% YoY.
• Diluted EPS: INR3.2, up 24% YoY.
• Operating Cash Flow: INR49.3 billion, up 3% YoY.
• Attrition: 15.3% on a TTM basis.
• Large Deal Bookings: $961 million, up 6% YoY in constant currency.

Q4 Outlook:

• IT Services Revenue: $2,602-2,655 million, translating to a sequential growth of -1.0% to 1.0% in constant currency terms.

 

  Analyst Crossfire:

• Large Deal Pipeline & Growth Potential (Vibhor Singhal – Nuvama Equities)? WIPRO highlighted a robust pipeline with strong traction in BFSI and EMR segments. BFSI is strong across Americas, Europe, and India, while EMR is performing well in Europe and the U.S. Large deal TCV grew 6% YoY, despite seasonal elements (Srini Pallia – CEO).

 

• Discretionary Spending Trends & Margin Expansion Levers (Vibhor Singhal – Nuvama Equities)? Discretionary spending shows positive signs in BFSI in the Americas, but is not yet widespread. Budgeting processes across sectors are ongoing, with stronger demand in the Americas but challenges in Europe. The company cited better execution, utilization, offshoring, and conscious overhead reduction as drivers. Margins reached 17.5%, a 12-quarter high, with plans to sustain within this band (Srini Pallia – CEO, Aparna Iyer – CFO).

 

• Sector-Specific Outlook & Capital Return Strategy (Abhishek Bhandari – Nomura)? BFSI saw furlough impact but grew 3.4% YoY, driven by consulting and cost takeout initiatives. Healthcare budgets are expected to grow slower than before. Management explained preference for a mix of dividends, buybacks, and special dividends. Decisions will be evaluated on a three-year basis for consistency (Srini Pallia – CEO, Aparna Iyer – CFO).

 

• Healthcare Growth Drivers, Large Deal Tenor & ACV Growth (Ravi Menon – Macquarie, Gaurav Rateria – Morgan Stanley)? Growth was broad-based across payers, providers, pharma, and medical devices. Large deal bookings were down, but ACV growth improved due to increased small and medium-sized deals (Srini Pallia – CEO, Aparna Iyer – CFO).

 

• Hiring Outlook & Top Account Growth (Sudheer Guntupalli – Kotak AMC)? Hiring is ongoing, with plans to recruit 10,000–12,000 fresh graduates quarterly in FY26, supplemented by lateral hiring. Top accounts grew due to robust execution, especially in BFSI and healthcare, and strategic focus on top 25 accounts (Srini Pallia – CEO, Aparna Iyer – CFO).

 

• Energy & Manufacturing Outlook, Employee Costs & Depreciation (Sandeep Shah – Equirus Securities, Ashwin Mehta – Ambit)? Manufacturing showed improvement in Q3, but energy and EMR remain challenging. Efforts focus on pipeline conversion. Employee costs offset by higher utilization, improved revenue quality, and cost optimization. Depreciation normalized post one-offs from Q3 last year (Srini Pallia – CEO, Aparna Iyer – CFO).

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