IT services and consulting major Wipro Ltd reported a consolidated net income of ₹3,350 crore, an increase of 4.5% QoQ and 24.5% YoY, for the October-December 2024 quarter, the company says in a statement today. The Bengaluru-based IT services company's gross revenue was at ₹22,320 crore, almost flat at 0.1% QoQ and 0.5% YoY, with the IT services segment revenue at $2,629.1 million, a decrease of 1.2% QoQ and 1.0% YoY.

Wipro's total bookings by the end of Q3 FY25 stood at $3,514 million, with large deal bookings at $961 million, an increase of 6% YoY in constant currency. The company's IT services operating margin for the quarter was at 17.5%, an increase of 0.7% QoQ and 1.5% YoY.

Earnings per share for the quarter was at ₹3.21 ($0.041), an increase of 4.6% QoQ and 24.4% YoY. Wipro's operating cash flows were at ₹4,930 crore ($576.4 million) as of December 31, 2024, an increase of 3.0% YoY and stood at 146.5% of net income for the quarter.

The voluntary attrition came in at 15.3% on a trailing 12-month basis. Wipro has also announced an interim dividend of ₹6 ($0.0701) per equity share/ADS. The company has revised the capital allocation policy to increase the payout percentage from 45% - 50% to 70% or above of the net income cumulatively on a block of 3-year period.

CEO & CFO on Wipro's Q3 performance

Srini Pallia, CEO and Managing Director, says in a seasonally weak quarter, Wipro's strong in-quarter execution helped it deliver above the top end of its revenue guidance. "We also achieved our highest margins in the past three years while continuing to invest in our people. We closed 17 large deals with a total value of $1B. We are advancing steadily and investing decisively to lead our clients in an AI-driven future.”

Aparna Iyer, Chief Financial Officer, says Wipro expanded margins for a fourth consecutive quarter, enabling it to achieve its previously stated target margin of 17.5%. "Our EPS grew 24.4% YoY and operating cash flow was at 146.5% of net income. We are pleased to share that the board has approved our revised capital allocation policy that increases the committed payout percentage to 70% or above in a block of 3 years. In addition, the board has also declared an interim dividend of INR 6 per share.”

Outlook for Q4 FY25

Wipro has said it expects revenue from its IT services business segment to be in the range of $2,602 million to $2,655 million, which translates to sequential guidance of (-)1.0 % to 1.0 % in constant currency terms.