Wipro Q1FY25 results: Net income jumps 4.6% YoY to Rs 30 billion, operating margin at 16.5%

Indian tech major Wipro released its Q1FY25 results, beating D-street estimates. The company's revenue from operations during the quarter stood at $2.63 billion, a dip of 4.9% YoY, in constant currency terms. The company's operating margin for IT services for the quarter stood at 16.5%, seeing a 0.4% YoY dip. The revenue from IT services during April-June 2024 was $2,625.9 million, witnessing a 5.5% YoY fall.

For the next quarter (ending September 2024), the company hopes for its IT Services business segment to be in the range of $2,600 million to $2,652 million, per its press release.

Revenue breakdown

The company's gross revenue for the quarter stood at Rs 219.6 billion, up 3.8% on YoY basis. At 34% of the total quarterly revenue, banking, financial services & insurance was the company's biggest revenue contributor segment, followed by communication (3.8%), consumer (19.2%), technology (11.5%), health (13.9%), manufacturing (6.4%) and energy, natural resources and utilities making up 11% of the total revenue.

In terms of geographies, over 60% stemmed from the Americas, while 27.6% came from Europe and 10.7% came from APMEA (Asia Pacific, India, Middle East & Africa). However, the company's large deals TCV (total contract value) for the quarter was $1.2 billion, down 3.6% YoY, while total bookings for the quarter were $3,284 million. However, Wipro's net income for the quarter stood at Rs 30.0 billion, up by 4.6% YoY.

Customer segmentation

As far as customer concentration goes, the top 1% of company's clients contribute 4% to its revenue, while the top 5 and top 10 make up for 13.6% and 22.5% of the revenue mix, respectively. As of June 30, 2023, the company's headcount was 2,34,391 with a voluntary attrition rate at 14.1%

During the previous quarter, the company gained 43 new customers, while obtaining 99.7% of its revenue from its existing ones. The number of active customers associated with the company stood at 1,364, down from 1,444 in the year ago period. In terms of customer size, Wipro's clientele for Q1FY25 stood at 735 (customers over $1 million), 407 (customers over $3 million) and 301 (customers over $5 million). However, this was slightly down from their base in Q1FY24, where the company had 769 customers worth over $1 million, 444 customers over $3 million and 319 customers over $5 million. As for customers over $100 million, the same rose marginally from 21 in Q1FY24 to 22 in Q1FY25.

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