Wipro Q3FY25: PAT rises 4.5% sequentially; Rs 6 per share dividend announced

Bengaluru-based IT technology major Wipro released its October-December results on Friday. For the reporting quarter, the company's consolidated profit after tax came in at Rs 3,353.8 crore, marking a 4.52 per cent sequential growth. In the previous September quarter, the company's PAT was recorded at Rs 3,208.7 crore.

Zee Business analysts expected PAT at the IT major to come in at Rs 3,010 crore. 

Revenue from operations during the review quarter came in at Rs 22,318.8 crore, while in the previous September quarter it was at Rs 22,301.6 crore. Analysts expected revenue to decline by 0.5 per cent sequentially during the quarter to Rs 22,200 crore.

The company's IT services segment revenue was reported at $2,629.1 million, decrease of 1.2 per cent QoQ and 1.0 per cent year-on-year (YoY). IT Services operating margin for the quarter was reported at 17.5 per cent, a 12-quarter high. 

Analysts expected IT services margin to dip by 0.4 per cent to 16.4 per cent from 16.8 per cent in the September quarter due to an impact on account of hike in wages.

Operating margin for the October-December period came in at 12-quarter high at 17.5 per cent, expanding 0.7 per cent QoQ. 

Total contract value of all the order booked during the December quarter, including new orders, renewals, and increases to existing contracts were at $3,514 million.

Srini Pallia, CEO and Managing Director, said “In a seasonally weak quarter, our strong in quarter execution helped us deliver above the top end of our 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.”

Guidance for Q4FY25

For the last quarter of the FY25, the company has guided for revenue growth of (-)1 per cent to 1 per cent in constant currency terms.  We expect revenue from our IT Services business segment to be in the range of $2,602 million to $2,655 million, added the company in its press release.

Interim dividend 

Also, on the sidelines, the company announced a Rs 6 per share dividend of par value of Rs 2 each, with record date being fixed as January 28, 2025. The payment of Interim Dividend will be made on or before February 15, 2025, added the company's filing with the exchanges.

The company also revised its capital allocation policy to increase the payout percentage from 45- 50 per cent to 70 per cent of its net income over a 3-year period.

Ahead of the company's earnings, its stock settled with a cut of over 2 per cent at Rs 281.85 apiece on the BSE.'