Wipro falls 8% after revenue and guidance for Q2FY25 missed estimates

Wipro shares tanked over 8% to ₹508.25 on July 22 after the IT major's weak Q1 FY25 performance disappointed investors. The company posted a 1% QoQ decline in its consolidated revenue.

Post the results announcement on Friday, the American depositary receipts (ADRs) of Wipro fell over 11% on the NYSE. Wipro has delivered the weakest numbers among the IT majors as HCL Tech and Infosys managed to beat market estimates with 2-3% revenue growth QoQ.

Wipro's Q1 FY25 revenue and guidance for Q2 FY25 missed analysts’ expectations.

The company's consolidated revenue declined by 1.1% QoQ to ₹21,963.8 crore, missing Moneycontrol's forecast of ₹ 22,229 crore. The company also revised its revenue guidance for the Q2 FY25, suggesting a potential sequential decline of 1% or a slight growth of up to 1% (in constant currency terms).

Meanwhile, Wipro’s Chief HR Officer Saurabh Govil, during the company’s Q1 earnings conference, said that the company plans to hire 10,000 to 12,000 people, including on and off-campus hires, for the financial year 2025, after two consecutive fiscals of headcount decline.

The company also plans to add a similar number of hires in the range of 10,000-12,000 for the next fiscal year (FY26) as well. Wipro is back in the market to hire after a year.

The stock hit a 52-week high of ₹580 on July 19, 2023, and a 52-week low of ₹375 on October 26, 2023. The current market price of ₹511.4 per share, the company’s market capitalisation stands at ₹2.67 lakh crore.

The stock has gained 26% in the last one year and 7% year-to-date.

The company's stock has a price-to-equity (P/E) ratio of 32.73x against a price-to-book (P/B) value of 5.04x. Earnings per share (EPS) stood at ₹17.03 with a return on equity of 15.41%, as per the data available on BSE.