Wipro shares fell by 5.55% on Thursday, trading at Rs 233.85, even after reporting strong Q4 results. The stock opened at Rs 235.80, touched a high of Rs 236.50, and fell to a low of Rs 232.20, compared to the previous close of Rs 247.50. The fall in share price came despite a 26% year-on-year (YoY) jump in net profit for the March quarter, which beat market estimates.
Wipro Q4 Results: Profit Beats Estimates, Stock Down 5%
Wipro reported a consolidated net profit of Rs 3,570 crore for Q4 FY25, compared to Rs 2,835 crore in the same quarter last year. Analysts had expected a profit of around Rs 3,290 crore, so this result came as a pleasant surprise. The revenue from operations rose slightly by 1% YoY to Rs 22,504 crore.
However, the company’s IT services segment revenue, which is its core business, saw a decline. It stood at $2,596.5 million, down 1.2% quarter-on-quarter (QoQ) and 2.3% YoY. In constant currency terms, the fall was 0.8% QoQ and 1.2% YoY.
Sequential Profit Growth and Mega Deals
On a QoQ basis, Wipro’s profit after tax rose 6%, up from Rs 3,354 crore posted in the December quarter. The company also shared that it ended FY25 with two mega deal wins and a strong increase in large deal bookings, showing signs of future stability. Total bookings for the quarter reached $3,955 million, up 13.4% QoQ, with large deal bookings at $1,763 million, up 48.5% YoY.
Margins Stable, Cash Flow Robust
Wipro’s IT services operating margin improved by 1.1% YoY to 17.5%, although it stayed flat QoQ. The company highlighted that its strong focus on execution helped keep margins steady even with soft revenue. For the full year FY25, Wipro generated a net income of Rs 13,140 crore, growing 19% YoY, while gross revenue slightly declined by 0.7% YoY to Rs 89,090 crore.
In Q4, operating cash flow came in at Rs 3,750 crore, which is 104.4% of net income but still marked a 28.2% YoY decline.
Focus Ahead: Client Partnership and Consistent Growth
Despite the uncertain macro environment, Wipro’s CEO Srini Pallia said the company is committed to client partnerships and profitable growth. He added that client satisfaction scores improved, and that the company will work to maintain margin stability in the upcoming quarters.
Conclusion
Even with strong profit numbers and big deal wins, Wipro’s stock took a hit, likely due to weak revenue growth and cautious investor sentiment. As clients remain careful in their IT spending, Wipro aims to stay focused on growth with better execution and strong client engagement.