Wipro Latest Q4 FY2025 Results Spur Confidence in Long‑Term Growth

Wipro Q4 FY2025 Results Fuel Long‑Term Investment Thesis

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Overview – Latest Q4 FY2025 Results
Wipro Ltd delivered a solid finish to FY2025, reporting a 1.4 % year‑on‑year rise in consolidated revenues for the quarter ended March 31, 2025, and a 25.6 % jump in profit after tax. Operating leverage and disciplined cost management drove margins higher, while free cash flow comfortably covered both capital expenditure and dividend payouts.

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Financial Highlights

• Revenue: ₹ 225 billion (+1.0 % QoQ, +1.4 % YoY)
• EBITDA Margin: 20.6 % (up 70 bps QoQ)
• PAT: ₹ 35.9 billion (+6.7 % QoQ, +25.6 % YoY)
• Diluted EPS: ₹ 3.39 (post‑bonus share count)
• Operating Cash Flow: ₹ 195.6 billion

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Key Metrics at a Glance

• Market Capitalisation: ₹ 2.49 trillion
• Share Price Range (52‑week): ₹ 208 – ₹ 325
• P/E: 18.9× (Standalone)
• Book Value: ₹ 78.6
• Dividend Yield: 2.56 %
• ROCE / ROE: 19.7 % / 16.7 %
• Net Debt / EBITDA: < 0.5×

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Segment Performance

1. Americas 1: Revenue ₹ 73.7 billion (+2.4 % QoQ); EBIT margin ~22 %
2. Americas 2: Revenue ₹ 68.6 billion (+0.7 % QoQ); margin ~22.6 %
3. Europe: Revenue ₹ 58.6 billion (–1.3 % QoQ); margin ~13.9 %
4. APMEA: Revenue ₹ 23.6 billion (+0.7 % QoQ); margin ~15.6 %

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Management & Governance

• Chairman: Rishad A. Premji
• CEO & MD: Srinivas Pallia (appointed July 2024)
• Board Approval: Q4 results signed off April 16, 2025

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Dividend & Capital Allocation

• No share buyback in FY25 (previous ₹ 1,451 Cr in FY24)
• 2.56 % dividend yield
• Bonus Issue: 1:1 completed Dec 2024
• Capex of ₹ 14.7 billion invested in campuses and infrastructure

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Growth Strategy & Expansion Plans

• AI‑First Services: Embedding generative AI across consulting and delivery
• Cloud & Automation: Scaling FullStride Cloud platform
• Consulting: Integrating Capco and Rizing capabilities in banking and capital markets
• Global Reach: Deepening North America leadership; targeting faster growth in EMEA and APMEA
• Talent Platforms: Upskilling 230K employees in AI and digital

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Industry & Company Outlook

• IT Services Growth: ~5 % CAGR for FY26 (IDC)
• Indian IT Export Forecast: ~5.1 % growth in FY25; crossing $300 bn in FY26
• Wipro Guidance: Mid‑single‑digit top‑line growth; margins stable at ~20–21 %

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Valuation & Credit Profile

Metric	Wipro	IT Peers
P/E	18.9×	~17×
P/BV	3.0×	~2.5×
Dividend Yield	2.56 %	1.5–2 %
Fitch Rating	A‑/Stable	—

Fitch affirmed Wipro’s A‑ / Stable rating in March 2025, citing strong free cash flow and conservative leverage.

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Long‑Term Projections
Assuming modest CAGRs and reinvested dividends, an equity stake in Wipro could deliver:

• 5 % CAGR: ~28 % total return over 5 years
• 7 % CAGR: ~40 % over 5 years
• 10 % CAGR: ~61 % over 5 years

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Disclaimer
This article is for informational purposes only and does not constitute investment advice. Readers should perform their own research or consult a financial professional before making investment decisions.