Wipro to Hire 10,000-12,000 Freshers Annually; Strong Q3 Results & Growth Plans
Wipro Ltd: Overview
We are a leading information technology services and consulting company, focused on building innovative solutions to unlock our clients’ boldest ambitions. Anchored in our vision to become an AI-centric organization, we leverage our comprehensive portfolio of capabilities in consulting, design, engineering, and operations to offer tailored solutions that address our clients’ most complex digital transformation needs. With a global workforce of over 230,000 committed individuals across 65 countries, we fulfil our promise of helping our customers, colleagues, and communities thrive in an ever changing world. IT service offerings are categorized under four Global Business Lines (GBLs), designed to drive focused growth in our priority markets. The offerings combine global expertise with local geo-focus in building capabilities while ensuring a dedicated sales presence closely aligned with the needs and preferences of our clients. Global technology spending grew at a slower pace of 4.4% year-over-year in the calendar year ended December 31, 2023, with enterprise software and IT services being the primary drivers of growth and de-growth seen in hardware and devices. t, AI-related activities have witnessed a significant uptick with 2.7x growth in activities related to industry collaborations and partnerships, product/service launches and enterprise. It is expected that there will be an increase in foundational spend across cloud, IT modernization, digital customer experience, and digital engineering projects.
Latest Stock News (20 Jan, 2025)
Technology services provider Wipro Ltd will hire 10,000 to 12000 freshers every year starting from next fiscal year, according to its Chief Human Resources Officer Saurabh Govil. For 2024-25 (FY25), Wipro aims to hire between 9,000 and 10,000 freshers, with plans to scale up in subsequent years, he said. Wipro reported better-than-expected October-December 2024 quarter results. The company projected fourth-quarter revenue growth to range from -1% to +1% in constant currency terms. The third-quarter performance was driven by quick deal wins and growth in healthcare and banking sectors, according to CEO Srini Pallia. CFO Aparna Iyer attributed the margin improvement highest in three years despite wage hikes to rigorous execution, high utilisation rates, improved offshoring, and cost optimisations in non-client-facing roles and overheads. Iyer stated that, we have had free cash flow generation, which is upwards of 130% even year to date; we had a powerful cash flow generation for the last two years. Our cash is at an all-time high, and we felt this was the right time. We also laid out our strategic priorities, and we are very clear that we are now ready to increase the committed payout levels, and therefore we have done that. We have also announced an interim dividend of ₹6 per share, which is substantially more than what we have done in the past. So increased capital allocation and increased dividend quantum.
Business Segments
- IT Services: This is the largest segment and encompasses a broad range of services, including consulting, application development, system integration, and digital transformation. Within IT Services, Wipro caters to industries such as Banking, Financial Services, and Insurance (BFSI), Consumer Goods, Healthcare, Manufacturing, Energy, Technology, and Communications. Wipro also focuses on emerging areas like cybersecurity, analytics, and AI-driven automation to help clients optimize operations and enhance customer experiences.
- IT Products: Wipro’s IT Products segment provides enterprise-class hardware and software solutions to meet the infrastructure needs of businesses. The offerings include computing, networking, and storage solutions, primarily targeted at Indian enterprises and government clients.
- Business Process Outsourcing: This segment encompasses business process outsourcing (BPO), process automation, and platform-based solutions. It focuses on delivering operational efficiency and scalability for industries such as retail, utilities, and healthcare, leveraging technologies like robotic process automation (RPA) and AI.
- Cloud & Infrastructure Services: This segment specializes in cloud migration, management, and optimization services. It helps businesses modernize their IT infrastructure to achieve agility and cost efficiency through partnerships with major cloud providers like AWS, Microsoft Azure, and Google Cloud.
Subsidiary Information
- Wipro LLC: This subsidiary operates in the United States, focusing on delivering Wipro’s comprehensive suite of IT services, including consulting, digital transformation, and business process outsourcing, to clients across various industries. Wipro LLC plays a crucial role in strengthening Wipro’s presence in the North American market.
- Wipro Philippines Inc.: Established to cater to the Asia-Pacific region, Wipro Philippines Inc. provides a range of IT and BPO services. The company is domiciled in the Philippines and was incorporated and registered with the Philippine Securities and Exchange Commission. It operates as a 99.99% owned subsidiary of Wipro IT Services SE, delivering tailored solutions to meet the diverse needs of clients in the region.
- Wipro IT Services UK Societas: Incorporated in the United Kingdom, Wipro IT Services UK Societas serves as an investing and holding company. It is a subsidiary of Wipro Limited and plays a strategic role in managing investments and overseeing operations within the UK and Europe.
- Wipro Holdings (UK) Ltd: This entity functions as a holding company in the United Kingdom, managing Wipro’s investments and subsidiaries in the region. It supports Wipro’s strategic initiatives and expansion plans within the UK and European markets.
Q3 FY25 & Business Highlights
- Revenue of ₹22319 crore in Q3 FY25 up by 0.51% YoY from ₹22205 crore in Q3 FY24.
- EBITDA of ₹4540 crore in this quarter at a margin of 20% compared to 19% in Q3 FY24.
- Profit of ₹3367 crore in this quarter compared to a ₹2701 crore profit in Q3 FY24.
- Wipro has made great progress in consulting of AI powered industry and cross industry solutions.
- The large deals have decreased this quarter but medium and small deals have strong demand.
- Demand form America is as usual high, and Europe demand is increasing as they are focusing more on cost optimization and this demand will be reflected in Q4 FY25.
- As per America’s budget information, their focus is more on developing and spending on Gen AI and Cloud infrastructure, so more demand is on that side.
Financial Summary
| INR Cr. | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 22205 | 22319 | 90488 | 89760 |
| Expenses | 18007 | 17779 | 73649 | 73008 |
| EBITDA | 4198 | 4540 | 16839 | 16752 |
| OPM | 19% | 20% | 19% | 19% |
| Other Income | 598 | 1005 | 2275 | 2631 |
| Net Profit | 2701 | 3367 | 11366 | 11112 |
| NPM | 12.5% | 15.1% | 12.6% | 12.4% |
| EPS | 2.58 | 3.2 | 10.3 | 10.6 |