Wipro Limited is a leading global information technology, consulting, and business process services company headquartered in Bangalore, India. Founded in 1945, Wipro has evolved from a vegetable oil manufacturer into a major player in IT services, cloud, cybersecurity, AI, and engineering services. The company operates in over 60 countries and serves clients across industries including BFSI (Banking, Financial Services, Insurance), healthcare, consumer goods, energy, and communications. It is one of India’s top four IT companies alongside TCS, Infosys, and HCL Technologies. Wipro’s strategy is increasingly focused on cloud transformation, enterprise modernization, and leveraging AI and automation across its services.
Q1 FY2025 Earnings Overview (Announced July 12, 2024)
Wipro reported Q1 FY2025 earnings with revenue at $2.67 billion, down 3.8% YoY, and net income at $286 million, down 6.6% YoY. EPS came in at $0.05, missing analyst estimates by a narrow margin. Operating margin remained stable at 16%. The company guided for flat to +2% sequential growth in revenue for Q2 FY2025 and reaffirmed its long-term growth outlook despite near-term macro challenges. Management emphasized improved deal pipeline visibility and demand recovery in key verticals like BFSI and cloud transformation.
Founding, Evolution, Products, and Competitors
Wipro was founded in 1945 by Mohamed Premji as a vegetable oil company named Western India Palm Refined Oils Limited. After Azim Premji took over in the late 1960s, the company pivoted toward technology in the 1980s and has since become one of India’s most iconic tech giants. In 2020, Thierry Delaporte, a Capgemini veteran, was appointed CEO, signaling a renewed push toward digital transformation and global expansion.
Wipro’s offerings include IT consulting, cloud services, data & analytics, cybersecurity, digital engineering, and business process services. It has established practices around platforms like Salesforce, SAP, Oracle, and Microsoft Azure. Wipro’s acquisitions—such as Capco (2021, for $1.45B to strengthen BFSI consulting), Rizing (SAP consultancy), and Designit (a design agency)—have supported its transition toward high-margin digital services.
Key competitors include Infosys, TCS, HCLTech, Accenture, and Cognizant.
Market Overview and Growth Expectations
Wipro operates in the $1.2+ trillion global IT services market, with digital transformation, cloud migration, and AI/ML integration being key growth drivers. The Indian IT sector itself is projected to grow to $500 billion by 2030, driven by global demand for cost-efficient, skilled digital services. According to NASSCOM and Gartner, the global IT services market is expected to grow at a CAGR of 7–8% through 2030.
Wipro is well-positioned in fast-growing subsegments like cloud modernization (20%+ CAGR), AI services (30% CAGR), and cybersecurity (12–15% CAGR). However, it continues to face pricing pressure and deal delays from North American clients amid macroeconomic uncertainty.
Competitors in the IT Services Landscape
Wipro’s major Indian competitors include Tata Consultancy Services (TCS), Infosys, and HCL Technologies—all of whom have stronger revenue growth in recent quarters. Global players like Accenture and Cognizant offer stiff competition in high-value consulting and digital deals, particularly in North America and Europe.
While TCS and Infosys have historically outpaced Wipro in deal wins and growth, Wipro has differentiated itself through aggressive acquisitions, domain-specific cloud capabilities, and a decentralized operating model under Delaporte’s leadership.
Unique Differentiation
Wipro’s key differentiator lies in its domain-focused consulting combined with technology execution, especially in BFSI and energy sectors. Its investments in building full-stack capabilities through acquisitions like Capco (BFSI) and Rizing (SAP) give it domain expertise at par with larger rivals. The company also runs a dedicated innovation platform, Wipro Holmes, which enables AI and automation-led transformation at scale.
Key Management Team
- Thierry Delaporte – CEO & Managing Director: Former COO of Capgemini, he brought a global services mindset and focused Wipro on margin expansion, agility, and M&A-led growth.
- Srinivas Pallia – CEO (effective April 2025): A Wipro veteran with over 30 years at the firm, formerly CEO of Americas 1, now stepping into the top role.
- Aparna C Iyer – CFO: Appointed in 2023, she has been with Wipro for nearly two decades and is focused on improving capital allocation and operational efficiency.
5-Year Financial Performance Overview
Over the past five years, Wipro’s revenue grew from $8.1 billion in FY2020 to $11.2 billion in FY2024, reflecting a 5-year CAGR of approximately 6.5%. The boost came from digital deals and strategic acquisitions, although recent quarters have seen soft demand in consulting and North America.
Net income growth was more volatile, growing from $1.2 billion in FY2020 to around $1.4 billion in FY2024, with a CAGR of ~3.2%. Earnings faced headwinds from margin compression, wage hikes, and integration costs related to M&A.
On the balance sheet, Wipro maintains a strong cash position ($3.9B in cash and equivalents as of March 2024), with low debt and solid free cash flow generation. Return on equity hovered between 16–18%, and the company has a consistent dividend payout policy, making it attractive for long-term investors seeking income.
Bull Case for Wipro
- Strong balance sheet and consistent free cash flow generation support buybacks, M&A, and dividends.
- Strategic acquisitions like Capco and Rizing deepen domain expertise and cross-sell potential in high-growth areas.
- New leadership under Srinivas Pallia may renew execution focus and client-centric agility.
Bear Case for Wipro
- Lagging revenue growth compared to peers like Infosys and TCS raises competitiveness concerns.
- North America remains weak, with deal cycles elongating due to cautious enterprise spending.
- Operating margins (~16%) remain below peer average despite aggressive cost controls.
Top Analyst Reactions to Q1 FY25 Earnings
- Goldman Sachs reiterated a Sell rating with a reduced price target of $4.10, citing below-peer growth and continued deal delays in BFSI.
- JP Morgan maintained a Neutral rating, highlighting stable margins and improved pipeline visibility.
- Morgan Stanley downgraded to Underweight, expressing concerns over weak topline momentum and cautious enterprise IT spending environment.
The stock is in a stage 4 bearish decline on the monthly and weekly charts. The daily chart is stage 1 consolidation with near term resistance in the $3.3 range. The stock is to be avoided for the near term.