Wipro's Q1 Performance Overview

Wipro reported a 2.3% decline in constant currency revenue for the June quarter, aligning with its projected guidance range of -3.5% to -1.5%. Despite the dip, the company showcased resilience with a significant increase in deal wins.

CEO's Insight on Market Trends

"We started the quarter facing significant macro uncertainty, which kept overall demand muted," said Wipro CEO Srini Pallia. He highlighted a shift towards AI, data, and modernisation programs, with many AI projects moving to scale and production.

Financial Highlights and Margins

Operating margins slightly decreased to 17.3% from 17.5% in the previous quarter, marking an 80-basis-point improvement year-on-year. CFO Aparna Iyer discussed the factors influencing these margins, including operational improvements and cost savings.

Deal Wins and Future Outlook

Wipro announced strong deal wins with a total contract value (TCV) of $5 billion, a 50.7% increase year-on-year. Large deals, focusing on cost reduction and vendor consolidation, contributed $2.7 billion, with execution expected over 6-8 quarters.

Geographical Performance

The Americas saw a 1.5% growth, while APMEA remained flat. Europe faced challenges, but BFSI demand was strong. Wipro forecasts a sequential revenue growth of -1% to 1% for the September quarter.