Wipro Reports Slight Revenue Decline in Q3
In a recent earnings conference, Wipro announced a 0.7% year-on-year decline in revenue in constant currency for the December quarter. Despite this decrease, the company saw a sequential growth of 0.1%, which landed at the upper end of its guidance. Looking ahead, Wipro forecasted a -2% to 0% sequential revenue growth in constant currency for the upcoming quarter.
Insights from Wipro’s Leadership
During the conference, Wipro CEO Srini Pallia expressed optimism for the year ahead despite the challenges faced in 2024. Pallia highlighted that clients are showing cautious optimism, with discretionary spending slowly making a comeback. He also emphasized the importance of cost optimization while expecting significant growth in AI spending moving forward.
Wipro CFO Aparna Iyer added that lower-than-expected furloughs in the December quarter helped the company meet its guidance. Looking towards the March quarter, Wipro projected revenue growth between -1% and 1%, indicating a cautious yet hopeful approach.
Operational Highlights and Growth Projections
Wipro’s total bookings for the quarter stood at $3.5 billion, marking a 7.3% increase year-on-year in constant currency terms. The company reported more interest in smaller and medium-sized deals compared to larger ones. Additionally, Wipro’s operating margin expanded to 17.5%, up 70 basis points from the previous quarter.
Wipro’s recent acquisition of Capco, a London-based consultancy, for $1.5 billion in 2021 has contributed to operational efficiency improvements in both core and consulting businesses. However, the company witnessed a decline in headcount by 1,157 employees in the December quarter, primarily due to reduced freshers onboarding. Wipro’s CHRO Saurabh Govil shared plans to hire around 10,000 freshers in the current fiscal year to address this decrease.
As Wipro navigates through the dynamic business landscape, the company remains focused on driving growth, optimizing costs, and seizing opportunities in the evolving market trends.
