Wipro ADR rises 4% on NYSE after IT major’s net profit shoots 24% YoY to surpass Street estimates in Q3FY25 | Stock Market News

Wipro ADR: American Depository Receipt (ADR) shares of India’s fourth-largest IT services company witnessed a sharp rise on the New York Stock Exchange (NYSE) after declaring its October-December quarter results for fiscal 2024-25 (Q3FY25). Wipro ADR rose 4.09 per cent to $3.435 on the American stock exchange after the IT major surpassed D-Street expectations with its net profit surging 24.5 per cent in the third quarter of FY25.

On Friday, January 17, the Srinivas Pallia-led tech giant reported a 24.5 per cent rise in consolidated net profit to ₹3,353.8 crore during the third quarter of the current fiscal year, compared to ₹2,694.2 crore in the year-ago period. Revenue from operations in the December quarter was ₹22,319 crore, up one per cent, compared to ₹22,205 crore in the year-ago period.

Also Read: Wipro, Tech Mahindra revenue shrinks in Q3

American Depositary Receipt or ADR is a tool for foreign companies or organisations to trade on US stock markets, just like regular shares of US companies. In theory, an ADR is similar to a special certificate issued by a US bank.

Wipro Q3 Results: Key metrics

Wipro’s top management guided for a “more hopeful and resilient” 2025 after facing macroeconomic challenges in 2024. The Bengaluru-headquartered tech major’s revenue from operations was aided by momentum in banking, financial services, insurance space, and America’s geography during Q3FY25.

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For the March quarter, Wipro sees revenue from IT services business in the range of $2,602 million to $2,655 million, which sequentially translates into a band of one per cent decline to one per cent growth. Hence, for January-March, Wipro forecasts its revenue growth would be -1 per cent to 1 per cent sequentially.

The company’s order wins stood at $3.5 billion in the December quarter, as opposed to $3.79 billion a year earlier. Wipro’s operating margin expanded 150 basis points from a year ago to 17.5 per cent, the highest in three years.

“We expanded margins for a fourth consecutive quarter, enabling us to achieve our previously stated target margin of 17.5 per cent,” said Aparna Iyer, Chief Financial Officer (CFO) of Wipro. Wipro announced Q3FY25 results under the International Financial Reporting Standards (IFRS).

Also Read: Wipro attrition rate rises to 15.3%; headcount down by 1,157 to 2,32,732 employees

Revenue from Europe, Asia Pacific, Middle East, and Africa markets declined during Q3FY25, as did income from energy, technology, and communications segments. Wipro declared an interim dividend of ₹6 per equity share. The record date for the interim dividend is fixed as January 28, 2025. The interim dividend payment will be made on or before February 15, 2025.

“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,” said Srini Pallia, CEO and Managing Director of Wipro.

“We closed 17 large deals with a total value of $1 billion. We are advancing steadily and investing decisively to lead our clients in an AI-driven future,” added Pallia. The IT services segment revenue was $2,629.1 million, a decrease of 1.2 per cent sequentially and one per cent YoY.

The board also approved a revised capital allocation policy that increases the committed payout percentage to 70 per cent or above in a block of three years. The earnings per share for the quarter was at ₹3.21, an increase of 24.4 per cent year-on-year (YoY).

Wipro’s headcount reduced by 1,157 in Q3 FY25, reversing two-quarters of employee additions. The employee tally stood at 2,32,732 in Q3 FY25, as against 2,33,889 in Q2 FY25 and 2,39,655 in Q3 FY24. The IT major expects fresher hiring to be between 10,000 and 12,000 for the next financial year.