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View Promises →Wipro Limited — Q3 FY25
Wipro delivered a solid Q3 FY25 with IT services revenue of $2.63B, slightly above guidance, and operating margins at a 12-quarter high of 17.5%, expanding 150bps YoY.
bullish
high
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Wipro delivered a solid Q3 FY25 with IT services revenue of $2.63B, slightly above guidance, and operating margins at a 12-quarter high of 17.5%, expanding 150bps YoY. Growth was led by Americas 1 (+3.7% YoY) and healthcare (+4.5% YoY), while Europe and APMEA remained soft. Large deal TCV was $1B, with strong traction in BFSI and manufacturing. Management guided Q4 revenue change of -1% to +1% sequentially, reflecting cautious optimism. Key risks include continued weakness in EMR and consumer verticals, and lumpy large deal conversions. The board approved a 70%+ payout ratio, signaling confidence in cash flows.
विप्रो ने वित्त वर्ष 2025 की तीसरी तिमाही में अच्छा प्रदर्शन किया। आईटी सेवाओं से कमाई 2.63 अरब डॉलर रही, जो अनुमान से थोड़ी ज्यादा है। कंपनी का मुनाफा मार्जिन 17.5% पर पहुंच गया, जो पिछले 12 तिमाहियों में सबसे ज्यादा है और पिछले साल से 1.5% बढ़ा है। अमेरिका और स्वास्थ्य सेवा क्षेत्र में अच्छी बढ़त देखी गई, जबकि यूरोप और एशिया-प्रशांत में कमजोरी रही। बड़े सौदों की कुल कीमत 1 अरब डॉलर रही, खासकर बैंकिंग और विनिर्माण में। अगली तिमाही में कमाई में 1% घटने से 1% बढ़ने का अनुमान है। कंपनी ने मुनाफे का 70% से ज्यादा हिस्सा निवेशकों को देने का फैसला किया है, जो अच्छा संकेत है।
Promises0 met · 2 missedRisks4 trackedTranscriptfull text
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Risk Intelligence
Continued Weakness in EMR and Consumer Verticals
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Read Transcript →Quarter Snapshot
IT Services Revenue
$2.63B
+0.1% QoQ
Revenue for Q3 FY25 in constant currency, slightly above the upper end of guidance.
Total Contract Value (TCV)
$3.5B
+6% YoY
Bookings for the quarter, with large deals at $1B.
Large Deal Wins
17 deals
+3 deals YoY
Number of large deals closed in Q3, totaling $1B in value.
Capco Revenue Growth
11%
+11% YoY
Year-on-year revenue growth for the consulting business, indicating improved discretionary demand.
What Changed vs Last Quarter
NEW
Operating Margin to Stay in Narrow Band Around 17.5%
CFO stated confidence in sustaining margins in a narrow band around the current level for Q4.
NEW
Capital Allocation Policy: 70%+ Payout Ratio from FY26
Board approved cumulative payout of 70% or more of net income over a three-year block starting FY26, via dividends and buybacks.
NEW
Campus Hiring of 10,000-12,000 per Quarter Next Fiscal
CEO indicated plans to hire 10,000-12,000 freshers each quarter in the next fiscal year, alongside lateral hiring.
UPDATED
Q4 FY25 Revenue Guidance: -1% to +1% QoQ in constant currency
Management expects IT services revenue to be between $2.602B and $2.655B in constant currency terms for Q4.
DROPPED
Margins expected to stay in narrow band in Q3
Despite headwinds from furloughs and salary increases, management confident of maintaining margins within a narrow band.
DROPPED
Target operating margin band of 17%-17.5%
Q2 margin of 16.8% brings company closer to the aspirational band; revenue growth needed to sustain beyond 17%.
NEW RISK
Continued Weakness in EMR and Consumer Verticals
Energy, manufacturing, and resources declined 8.7% YoY; consumer grew only 0.4% YoY. These segments represent ~36-38% of revenue and may hinder consistent growth.
NEW RISK
Lumpy Large Deal Conversions
Large deal TCV was down sequentially, and management noted seasonal lumpiness. Conversion to revenue may be uneven.
NEW RISK
Europe and APMEA Softness Persisting
Europe degrew 4.6% YoY and APMEA degrew 8% YoY. Management acknowledged challenges in these regions despite pipeline rebuilding.
NEW RISK
Healthcare Budget Growth May Slow
CEO noted healthcare budgets may grow slower than in the past, which could impact a key growth driver.
RISK GONE
Continued weakness in Europe
Europe declined 0.1% QoQ due to weak demand and client-specific issues; management expects softness to persist in Q3.
RISK GONE
Delayed recovery in Manufacturing and ENU
Manufacturing (-2%) and Energy & Utilities (-3.7%) remained weak; management cited pipeline but no timeline for recovery.
RISK GONE
Furlough impact on BFSI and Capco
Capco's consulting business is more susceptible to furloughs, which could weigh on Q3 growth despite strong momentum.
RISK GONE
Slow conversion of large deals to revenue
Large deals take 2-3 quarters to ramp up; analyst flagged delayed conversion, though management expressed confidence.
🤫 Topics management stopped discussing
Mentioned in Q1 FY24, Q2 FY24, Q3 FY24
Management guided sequential constant currency revenue growth of 2%-4% for Q4 FY24.
Mentioned in Q1 FY24, Q2 FY24, Q4 FY24
Management expects margins to stay within a narrow band similar to recent quarters, with no specific target provided.
Mentioned in Q2 FY24, Q2 FY25, Q4 FY24
Large deals take 2-3 quarters to ramp up; analyst flagged delayed conversion, though management expressed confidence.
Mentioned in Q1 FY25, Q2 FY25
Despite headwinds from furloughs and salary increases, management confident of maintaining margins within a narrow band.
Fast read
Guidance and risk preview
Management expects IT services revenue to be between $2.602B and $2.655B in constant currency terms for Q4.
Energy, manufacturing, and resources declined 8.7% YoY; consumer grew only 0.4% YoY.
View Risks →