Core Viewpoint - Wipro Ltd's shares fell by as much as 6.3% following a disappointing revenue forecast for the June quarter, indicating concerns over a potential third consecutive year of revenue decline due to ongoing global tech spending cuts [1][2]. Group 1: Revenue Forecast and Market Reaction - Wipro expects revenue for the April-June period to decline between 1.5% and 3.5% sequentially, with the new CEO Srini Pallia highlighting increased uncertainties for the upcoming fiscal year [1][2]. - The company's shares have seen a year-to-date decline of 22.4%, which is slightly better than the broader Nifty IT index's 24.8% fall, reflecting growing investor skepticism about Wipro's future prospects [2][3]. Group 2: Analyst Reactions and Earnings Estimates - Analysts have expressed concerns that Wipro's first-quarter guidance could hinder any recovery efforts, with Phillip Capital noting it sets the stage for another challenging year following two years of revenue decline [4]. - Several brokerages, including Nomura and Nuvama, have reduced their FY26 and FY27 earnings estimates due to macroeconomic uncertainties and slowing project spends, with Nomura cutting its FY26 EPS estimates by 2-4% and revising the target price to ₹280 from ₹300 [5][6]. Group 3: Downgrades and Market Sentiment - At least nine out of 39 analysts covering Wipro have downgraded their ratings, and 20 have cut their price targets, with the median target price declining by nearly 14% to ₹250 over the past month [7]. - Emkay Global maintained a "Reduce" rating with a target of ₹260, citing low near-term visibility despite a strong deal pipeline [8]. Group 4: Performance Analysis - ICICI Securities described the March quarter's performance as "abysmal," pointing to weak revenues and macro concerns, particularly in discretionary sectors like auto and manufacturing [9]. - Motilal Oswal Financial Services (MOFSL) cut its FY26/FY27 EPS estimates by around 4%, anticipating a 1.9% year-over-year revenue decline in constant currency terms, while retaining a Sell rating with a target price of ₹215 [10]. Group 5: Positive Aspects and Future Outlook - Some brokerages noted improvements in capital allocation policies and a projected FY27 dividend yield of 4%, but the consensus remains that the near-term outlook is grim with little to trigger a re-rating of the stock [11].

Wipro Limited (WIT) Q4 2025 Earnings Conference Call April 16, 2025 09:30 AM ET Company Participants Moderator - Conference OperatorApartha Iyer - Chief Financial OfficerSrinivas Balya - Chief Executive Officer and Managing DirectorUnknown Speaker - Conference ParticipantDeepak Bohra - Corporate Treasurer and Head of Investor Relations Conference Call Participants Nitin Padmanabhan - Analyst, InvestecKumar Rakesh - Analyst, BNP ParibasGaurav Rateria - Analyst, Morgan StanleyAnkur Rudra - Analyst, JP MorganS ...

Financial Data and Key Metrics Changes - The IT services revenue for Q4 was $2.6 billion, reflecting a sequential decline of 0.8% and a year-on-year decline of 1.2% [11] - For the full year, IT services revenues were $10.51 billion, showing a year-on-year decline of 2.3% [12] - Operating margins for Q4 were at 17.5%, flat sequentially but expanded by 110 basis points year-on-year [11] - The net income grew by 6% quarter-on-quarter in Q4 and 19% for the full year, with an EPS of INR 12.6, a growth of 20% year-on-year [30] Business Line Data and Key Metrics Changes - The Americas region one grew 0.2% sequentially and 6% year-on-year, while Americas region two de-grew 1% sequentially and 1.8% year-on-year [13] - Europe de-grew 2.5% sequentially and 6.9% year-on-year [13] - The BFSI sector de-grew 0.5% sequentially but grew 0.8% year-on-year [14] - Capco performed well, growing 6.5% sequentially and 11.5% year-on-year [15] Market Data and Key Metrics Changes - The company closed 17 large deals in Q4 with a total value of $1.8 billion, and for the full year, 63 large deals worth $5.4 billion were closed, reflecting a year-on-year growth of 17.5% [15] - The healthcare sector de-grew 3.1% sequentially but grew 0.1% year-on-year [14] - The consumer sector de-grew 1.3% sequentially and was flat year-on-year [14] Company Strategy and Development Direction - The company is focused on driving consistent, profitable growth and has identified five strategic priorities to achieve this [10] - There is a strong emphasis on AI-powered solutions and consulting-led services to meet client needs [18] - The company has realigned its global business lines to better serve customer needs, effective April 1st [24] Management's Comments on Operating Environment and Future Outlook - The management noted that clients are approaching tech reinvention cautiously due to an uncertain macroeconomic environment and recent tariff announcements [9] - There is an expectation of a sequential revenue decline of 3.5% to 1.5% in constant currency terms for the upcoming quarter [27] - The management remains optimistic about the deal pipeline and expects to stabilize and bring growth back in Europe [121] Other Important Information - The company finished the financial year with a free cash flow as a percentage of net income at 118%, with gross cash including investments at $6.4 billion [31] - The company has hedged about $2.4 billion of forex derivative contracts as of the end of Q4 [32] Q&A Session Summary Question: Which verticals are seeing the highest impact currently? - The CEO noted that sectors like consumer and manufacturing, particularly automotive and industrial, are experiencing significant impacts due to the uncertain economic environment [38] Question: How is BFSI performing in the US and Europe? - BFSI is seeing good traction in the US and APMIA, but there are headwinds in Europe [41] Question: What is driving the weak revenue growth despite strong bookings? - The CFO explained that timing differences in deal conversions and ramp-downs due to lower discretionary spending are affecting revenue growth [53][54] Question: What is the outlook for Europe and its impact on overall performance? - The CEO mentioned that Europe has been a challenge, but there is a strong pipeline of deals and new leadership focused on improving performance [66][120] Question: How does the company plan to maintain margins in a weak revenue environment? - The CFO indicated that while there will be pressure on margins, the company aims to keep them in a narrow band through operational efficiencies and cost management [96][100]

Investors interested in Computers - IT Services stocks are likely familiar with Wipro Limited (WIT) and Accenture (ACN) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with spec ...

Core Insights - ColorTokens Inc. has announced a strategic partnership with Wipro Limited to launch the Breach Ready Security Solution, an AI-powered Zero Trust microsegmentation security defense solution for global enterprises [1][4] Company Overview - ColorTokens is recognized as a leader in enterprise microsegmentation, focusing on preventing the lateral spread of ransomware and advanced malware through its Xshield™ platform, which visualizes traffic between workloads and devices [5] - Wipro Limited is a leading technology services and consulting company with over 230,000 employees across 65 countries, dedicated to innovative solutions for digital transformation [6] Product Features - The Breach Ready Security Solution provides comprehensive visualization of the security landscape, real-time risk identification, and ransomware and malware impact mitigation across various environments, including cloud, IoT/OT devices, and data centers [2] - The solution integrates ColorTokens' Xshield™ platform with Wipro's CoreProtect framework to deliver Zero Trust-based network segmentation, offering network security assessments and 24/7 managed services [2][3] Industry Impact - The partnership aims to enhance cyber resilience for enterprises in major industries such as Banking, Financial Services and Insurance (BFSI), Healthcare, Pharma and MedTech, Manufacturing, CPG and Retail, and Energy and Utilities [3] - Insights from early implementations of the Breach Ready Security Solution have refined its offerings, helping enterprises minimize financial losses and reputational damage from advanced cyberattacks [4]

Core Perspective - Veuu has formed a strategic partnership with Wipro Limited to enhance the healthcare payment process through an AI-powered instant payments platform, aiming to improve claims payments in the industry [1][4]. Group 1: Partnership and Collaboration - The collaboration between Veuu and Wipro is designed to bridge the gap between healthcare providers and payers, facilitating immediate reimbursement for providers [1][2]. - Wipro's expertise in healthcare data management and revenue cycle solutions complements Veuu's AI capabilities, creating a targeted solution for instant payments in healthcare [4][5]. Group 2: Technology and Innovation - Veuu's platform leverages advanced AI technology to predict claims denials and payment outcomes, providing providers with immediate feedback on claim status within milliseconds [3][4]. - The instant payment feature eliminates lengthy reimbursement waits, significantly reducing costs for payers and minimizing fraud instances [2][3]. Group 3: Benefits to Providers and Payers - By ensuring timely payments, the partnership addresses the operational capital disruptions faced by providers due to delayed reimbursements [4]. - The platform allows for efficient fund transfers at reduced rates, optimizing the payment process and lowering overall healthcare costs [4][5]. Group 4: Company Overview - Veuu is positioned as a sustainable FinTech ecosystem that utilizes AI to revolutionize healthcare payments, aiming to drive down costs for payers while enhancing the quality of care [5]. - Wipro Limited is a leading technology services and consulting company focused on innovative solutions for digital transformation, with a global presence of over 230,000 employees [6].

Financial Data and Key Metrics Changes - IT Services revenue for Q3 was $2.63 billion, reflecting a sequential growth of 0.1% and a year-on-year decline of 0.7% [9] - Total Contract Value (TCV) of bookings was $3.5 billion, with operating margins at 17.5%, an expansion of 0.7% quarter-on-quarter and 1.5% year-on-year, marking a 12-quarter high [10][24] - Earnings per share (EPS) and net income grew 24% year-on-year and 5% sequentially, driven by margin expansion and better treasury returns [25] Business Line Data and Key Metrics Changes - Capco business saw improved demand with order book growing 9% year-on-year and revenue growing 11% year-on-year [10] - Health sector grew 6.7% sequentially and 4.5% year-on-year, while BFSI sector declined by 1.9% quarter-on-quarter but grew 3.4% year-on-year [12] - Technology and Communications sector declined 0.6% quarter-on-quarter and 5.3% year-on-year [13] Market Data and Key Metrics Changes - Americas 1 grew 3.9% sequentially and 3.7% year-on-year, primarily driven by health and technology sectors [11] - Europe declined 2.7% sequentially and 4.6% year-on-year, while APMEA declined 2.1% sequentially and 8% year-on-year [11] Company Strategy and Development Direction - The company is focusing on AI-driven innovation and has closed 17 large deals worth $1 billion across various markets and sectors [13] - Emphasis on large accounts and expanding into new business lines, with a sequential growth of 7.3% in top accounts [16] - Investment in AI education with 50,000 employees holding advanced AI certification, and a commitment to building a diverse and high-performance culture [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, with a gradual recovery in discretionary spending and strong demand in the Americas [8][36] - Guidance for Q4 is a sequential growth of -1% to +1% in constant currency terms, reflecting current visibility [27] Other Important Information - The Board approved increasing the payout percentage to 70% or above of net income over a three-year period, effective FY '26, and declared an interim dividend of INR6 per share [26][27] - The company is actively hiring, planning to recruit 10,000 to 12,000 people in the next fiscal year [102] Q&A Session Summary Question: On deal wins and future growth trajectory - Management noted a robust large deal pipeline, particularly in BFSI and EMR segments, and emphasized that large deals are lumpy and seasonal [31][33] Question: Discretionary spending trends - Positive signs in discretionary spending were noted in the BFSI segment, with a healthy overall pipeline [35][37] Question: Margin expansion despite wage hikes - Margin expansion was attributed to improved execution, utilization, and conscious reductions in overheads [38][42] Question: Growth outlook and guidance rationale - Management explained that guidance is based on visibility and reflects improved execution and demand environment [51][53] Question: Specific sector performance outlook - BFSI was impacted by furloughs but is expected to see budget upticks, while healthcare budgets may grow at a slower pace [60][62] Question: Non-top 10 client performance - The company remains focused on both hunting and mining opportunities across all client segments [72][73] Question: Future hiring plans - The hiring engine is active, with plans for significant recruitment in the upcoming fiscal year [102] Question: Capital allocation strategy - The company prefers both dividends and buybacks, with a commitment to a 70% payout over three years [111]

Core Viewpoint - Wipro Limited (WIT) has shown a downtrend recently, losing 5.2% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottom formation, suggesting that selling pressure may be exhausting and that bulls are gaining control [2][4]. - The hammer pattern is characterized by a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near or above the opening price, signaling potential support [3][4]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [4]. Fundamental Analysis - Recent upward revisions in earnings estimates for WIT serve as a bullish indicator, correlating strongly with near-term stock price movements [6]. - The consensus EPS estimate for the current year has increased by 3.7% over the last 30 days, indicating analysts' optimism about WIT's earnings potential [7]. - WIT holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Financial Results - Wipro Limited's Board approved the financial results for the quarter and half year ended September 30, 2024, under IndAS and IFRS[2]. - The financial results are audited and comply with the requirements of Regulation 33 of the SEBI Listing Regulations[10]. - The auditor's report confirms that the standalone financial results present a true and fair view of the company's financial position[10]. - The financial results were prepared in accordance with Indian Accounting Standards and the provisions of the Companies Act, 2013[49]. - The Company confirmed that its statutory auditors issued unmodified opinions on the consolidated financial results for the three and six months ended September 30, 2024[49]. Bonus Share Issue - The company recommended a bonus equity share issue in the ratio of 1:1, providing 1 bonus share of ₹2 for every fully paid-up share held[3]. - The actual number of bonus equity shares to be issued will be determined based on the fully paid-up equity share capital as of the record date[7]. - The Board approved a bonus share issue in the proportion of 1:1, subject to member approval, which will adjust the Earnings Per Share retrospectively[70]. Revenue and Profit - Revenue from operations for the three months ended September 30, 2024, was ₹168,958 million, a 1.4% increase from ₹166,807 million in the same period last year[23]. - Profit before tax for the three months ended September 30, 2024, was ₹37,081 million, up 30.4% from ₹28,481 million in the same period last year[23]. - Profit for the period for the three months ended September 30, 2024, was ₹27,135 million, representing a 31.6% increase from ₹20,613 million in the same period last year[23]. - Total comprehensive income for the period ended September 30, 2024, was ₹26,819 million, compared to ₹20,814 million in the same period last year, indicating a 28.8% increase[24]. - Profit for the period attributable to equity holders of the Company was ₹32,088 million, up from ₹30,032 million year-over-year, representing a growth of 6.8%[49]. Expenses and Tax - Employee benefits expense for the three months ended September 30, 2024, was ₹95,036 million, a decrease from ₹96,427 million in the same period last year[23]. - The company reported a total tax expense of ₹9,946 million for the three months ended September 30, 2024, compared to ₹7,868 million in the same period last year, reflecting a 26.4% increase[23]. - Total expenses for the three months ended September 30, 2024, were ₹189,860 million, a decrease of 3.8% compared to ₹197,435 million for the same period last year[48]. Cash Flow and Assets - Net cash generated from operating activities for the six months ended September 30, 2024, was ₹71,547 million, compared to ₹63,860 million for the same period in 2023, reflecting an increase of 12.6%[27]. - Total assets increased to ₹921,131 million as of September 30, 2024, up from ₹816,486 million as of March 31, 2024, representing a growth of 12.8%[26]. - Cash and cash equivalents at the end of the period were ₹41,751 million, compared to ₹43,698 million at the end of the same period in 2023, showing a decrease of 4.4%[27]. Strategic Focus - The company plans to continue focusing on market expansion and new product development to drive future growth[48]. - The Company is focused on expanding its market presence through strategic acquisitions and partnerships in various regions[51]. - The Company has a diverse portfolio of subsidiaries and joint ventures across multiple countries, enhancing its global presence[50]. Segment Performance - Total segment revenue was $222,620 million, a decrease of 1.8% compared to $225,427 million for the same period in 2023[65]. - IT Services revenue for Americas 1 was $68,393 million, showing an increase of 2.6% from $66,813 million in September 2023[65]. - The IT Products segment generated revenue of $663 million, down from $1,469 million in September 2023, reflecting a decrease of 54.9%[65]. Shareholder Returns - The company completed a buyback of 269,662,921 equity shares at ₹445 per share, resulting in a total cash outflow of ₹145,173 million[25]. - The paid-up equity share capital remained stable at ₹10,463 million, consistent with the previous period[49].

Financial Data and Key Metrics Changes - IT services revenue for Q2 was $2.66 billion, reflecting a sequential growth of 0.6% in constant currency, nearing the upper end of guidance [5][14] - Operating margins expanded to 16.8%, an increase of 35 basis points quarter-on-quarter and 71 basis points year-on-year [6][14] - Total bookings reached $3.6 billion, an 8.4% increase quarter-on-quarter [6] - Net income grew 21.3% year-on-year, driven by higher operating profits which increased by 11.4% year-on-year [15] Business Line Data and Key Metrics Changes - Capco business grew 3.2% quarter-on-quarter and 6.9% year-on-year, indicating strong traction [6] - BFSI sector delivered 2.7% sequential growth, marking the third consecutive quarter of growth in this area [7] - Technology and communications grew by 1.6% sequentially, while manufacturing declined by 2% [7][8] - Energy and utilities experienced a sequential decline of 3.7%, but opportunities for vendor consolidation were identified [8] Market Data and Key Metrics Changes - Americas 1 achieved sequential growth of 1.2%, driven by healthcare, technology, and communication sectors [6] - Americas 2 recorded a sequential growth of 0.8%, supported by strong demand in the BFSI sector [6] - APMEA grew by 0.3%, showing early signs of stabilization [6] - Europe saw a sequential decline of 0.1% due to weak demand and client-specific issues [7] Company Strategy and Development Direction - The company is focusing on five strategic priorities, including expanding large accounts and investing in AI opportunities [5][8] - Emphasis on building a strong talent pool with over 44,000 employees trained in advanced AI [11] - The company is committed to maintaining margins despite expected revenue headwinds in Q3 due to seasonal furloughs [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged economic uncertainties but expressed confidence in the long-term potential of the business [5] - Q3 revenue is expected to be affected by seasonal furloughs and fewer working days, guiding for a sequential revenue growth of -2% to 0% [12][16] - Management remains optimistic about deal momentum across various sectors, particularly in the Americas [17][26] Other Important Information - The board of directors recommended a 1:1 bonus share issue, subject to shareholder approval [15][16] - The company is revising its capital allocation strategy in line with its long-term plans [15][16] Q&A Session Summary Question: Guidance on revenue impact from furloughs and client-specific challenges - Management indicated that guidance reflects both seasonal furloughs and client-specific issues in Europe, but there is good momentum in deal pipelines across various regions [17][21] Question: Status of energy and utilities sector challenges - Management noted ongoing challenges but highlighted a good pipeline and demand for vendor consolidation in the energy sector [19][20] Question: Drivers of margin improvements amidst wage increases - Management cited improved utilization, offshoring, and G&A optimization as key levers for margin maintenance [23][24] Question: Timeline for consistent growth in manufacturing and energy sectors - Management emphasized the importance of winning deals in these sectors and acknowledged the need for continued focus and execution [50][60] Question: Impact of U.S. elections on deal closures - Management downplayed the potential impact of U.S. political changes on business growth, citing the resilience of the U.S. economy [63] Question: Strategy regarding active customer numbers - Management explained the decline in active customers is due to exiting certain tail accounts and emphasized strong performance among top clients [64]