Due to clients’ cautious approach to big transformational deals and discretionary spending in the wake of US President Donald Trump’s tariff hike, IT services giant Wipro has revised its sequential revenue growth guidance for the first quarter ended June to -3.5 to -1.5 percent in constant currency.
For the fourth quarter that ended in March, the Bengaluru-based company posted a net profit of INR 3,569.60 crore, which was approximately 26% more than the same period last year. At INR 22,504.2 crore, the fourth quarter’s gross revenue increased 1.3% year over year and only 0.8% sequentially.
Due to big deal bookings that increased 48.5% year over year, the IT services segment’s revenue for the fourth quarter increased 2.3% yearly in constant currency to USD 2.6 billion.
“We increased large deal bookings, grew our top accounts, and finished FY25 with two mega deal wins. Strong execution and engagement were reflected in the improvement in client satisfaction levels. Additionally, we kept making investments in our worldwide personnel as well as in enhancing our AI and consulting skills. We are focused on working closely with our clients while remaining dedicated to steady and profitable growth, while they remain cautious in the face of macroeconomic uncertainty,” stated Srini Pallia, CEO and Managing Director of Wipro.
“Big deals are still moving forward at a rapid pace. We closed 17 significant transactions totaling USD 1.8 billion in Q4 across a variety of markets and industries. At a post-earnings briefing, Pallia informed reporters, “We closed 63 large deals for a total value of USD 5.4 billion for the full year, which is a year-on-year growth of 17.5%.”
Given that the additional tariffs imposed by US President Donald Trump are expected to drive up inflation in its major US market and cause customers to reduce spending, the Indian IT services sector may have to prepare for a difficult year ahead. Recent tariff rates exacerbate already-existing client decision-making cycle delays and discretionary spending reductions.
In comparison to the same quarter last year, operating margins increased 110 basis points to 17.5% in the March quarter from 16.4%. Sequentially, margins stayed constant.
“Our focus on execution rigor has ensured that our margins have steadily expanded even in a softening revenue environment,” stated Aparna Iyer, Chief Financial Officer. In the upcoming quarters, we will work to keep the margin within a small range.
As of the March quarter, Wipro’s largest vertical, Banking, Financial Services & Insurance (BFSI), provided 34.2% of total revenue, albeit declining 0.8% year over year in constant currency. The second-largest segment, consumer business, produced 18.9% of sales and stayed steady year over year.
Analysts feel that global economic challenges and muted discretionary spending are the main causes of Wipro’s moderate quarterly increase of 0.8% in Q4.
“Despite this, the outlook is still optimistic due to a robust deal pipeline and early indications of recovery in important industries like healthcare and BFSI, which may help counteract weakness in slower-performing sectors. Securing big deals, enhancing client relationships, developing AI and GenAI capabilities, and adapting its business practices to the changing demands of the market are the company’s main priorities. Maintaining staff stability is still crucial, even though attrition has somewhat decreased from the prior quarter. If rising workload demands are not adequately managed, they may have an impact on service quality and delivery, which could jeopardize future growth, according to Biswajit Maity, Senior Principal Analyst at Gartner.
As of March 31, 2025, the overall headcount was 233,346 after the voluntary attrition rate decreased to 15% on a trailing 12-month basis from 15.3% in the previous three months.
After market hours on Wednesday, Wipro released its results. Wipro’s stock ended the day up 1.4% at INR 247.50 on the BSE ahead of the results.
