Wipro Ltd, one of India’s leading IT services companies, reported a 24.48% year-on-year increase in its consolidated net profit for the third quarter of the fiscal year 2024-25 (Q3 FY25).
The company posted a net profit of ₹3,353.8 crore, compared to ₹2,694.2 crore in the same quarter last year.
Revenue from operations edged up by 0.51% to ₹22,318.8 crore from ₹22,205.1 crore in the corresponding period last fiscal.
During the earnings call, Wipro’s management emphasized the need to focus on improving employee utilization rates.
They also highlighted the importance of lowering attrition to grow margins.
The company’s new CEO highlighted the importance of organic growth and capital allocation plans.
Wipro Q3 FY25: Headcount and Attrition Rate
Wipro’s headcount saw a decline of 1,157 employees in Q3 FY25, bringing the total number of employees to 232,732.
This marks a reversal from two consecutive quarters of employee additions.
The company had 239,655 employees in Q3 FY24, indicating a decrease of 6,923 employees year-on-year.
In Q2 FY25, Wipro’s headcount increased by 2,500-3,000 freshers, and the attrition rate was 14.5%.
The company’s net profit and revenue growth were also more robust in Q2 FY25 compared to Q3 FY25.
The attrition rate at Wipro increased to 15.3% on a last-twelve-month (LTM) basis in Q3 FY25, up from 14.5% in Q2 FY25.
This rise in attrition is attributed to seasonal slowdowns in its consulting business, increased furloughs, and cross-currency headwinds.
New Partnerships and Hiring Plans
Wipro has been actively pursuing new partnerships to bolster its business.
However, specific details about new partnerships formed in Q3 FY25 were not disclosed in the available information.
Analysts and investors are keen to hear more about Wipro’s capital allocation plans and any new partnerships during the earnings call.
Wipro is reassessing its lateral and campus hiring models to focus on improving the utilization rate of employees and lowering attrition.
The company onboarded over 2,500-3,000 freshers in Q2 FY25, and 3,000 freshers in the June quarter.
Wipro’s hiring plans for the upcoming quarters will be closely watched by analysts and investors.
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