Latest news with #Pallia
Time of India
4 days ago
- Business
- Time of India
Wipro's Q1 report; Former Nexus MD's new fund
Next Wipro's Q1 report; Former Nexus MD's new fund Want this newsletter delivered to your inbox? Also in the letter: Wipro Q1 profit rises 11% YoY; CEO says AI now central to clients Snapshot: Net profit: up 11% YoY and down 6.7% QoQ to Rs 3,330 crore, just ahead of expectations. up 11% YoY and down 6.7% QoQ to Rs 3,330 crore, just ahead of expectations. Revenue: marginal rise to Rs 22,134 crore. marginal rise to Rs 22,134 crore. Interim dividend: Rs 5 per share; record date is July 28. Rs 5 per share; record date is July 28. Total deal wins: $4.97 billion, up 50.7% YoY in constant currency; large deals more than doubled to $2.7 billion. Strategic lens: Operating margin in the IT services business rose to 17.3%, up 80 basis points. Cash flow came in strong at Rs 4,110 crore, 123% of net profit. Outlook: Also Read: LTIMindtree Q1 consolidated profit jumps 11% YoY to Rs 1,255 crore; revenue up 8% Number-wise: Net profit at Rs 1,254 crore. at Rs 1,254 crore. Revenue increased 7.6% YoY to Rs 9,840 crore. increased 7.6% YoY to Rs 9,840 crore. Operating margin at 14.3%. at 14.3%. The company paid a final dividend of Rs 45 per share. Sameer Brij Verma's solo fund Northpoint raises $150 million Focus areas: Status check: Why it matters: Zoom out: Sponsor ETtech Top 5 & Morning Dispatch! Why it matters: The opportunity: Reach a highly engaged audience of decision-makers. Boost your brand's visibility among the tech-savvy community. Custom sponsorship options to align with your brand's goals. What's next: SaaS startups tailor new green solutions for fashion industry Tell me more: Automate climate compliance. Track carbon emissions with precision. Make greener decisions across their supply chains. Decode consumer demand using AI and machine learning. Here's how: What else? Newme has a 30-member tech team working on supply chain efficiency. Myntra and Flipkart crunch browsing data to forecast demand. India is estimated to produce approximately 7,800 kilotonnes of textile waste annually, according to reports. Byju's founders plan $2.5 billion lawsuit against Glas Trust, others for reputational damage Legal moves: Backdrop: Meanwhile: Keeping Count Other Top Stories By Our Reporters Solicitor general defends govt's takedown regime in X HC case: Zoho debuts in-house LLM and AI agents: Karnataka CM pulls up Meta for 'misleading' Kannada translations: Global Picks We Are Reading Happy Friday! IT major Wipro reported an 11% rise in net profit, just ahead of Street expectations. This and more in today's ETtech Morning Dispatch.■ SaaS solution for sustainability■ Byju's founders vs Glas Trust■ Solicitor general on X vs govtSrini Pallia, CEO, WiproIn a sluggish IT spending climate, Wipro's topline stayed muted in the June quarter, but strong deal momentum offered a silver Srini Pallia flagged ongoing macro uncertainty but noted rising demand for cost efficiency and AI-led transformation. 'AI is no longer experimental, it's central to our clients' strategies,' he expects flat to 1% sequential growth in Lambu, CEO, LTIMindtreeLTIMindtree on Thursday posted 11.2% sequential and 10.5% year-on-year growth in net profit for the April-June quarter, helped by recovery in the European and North American markets and in the consumer business, healthcare, life sciences, and public services Brij Verma, who left Nexus Venture Partners last year, has closed a $ 150 million solo GP (general partner) fund, Northpoint Capital, according to people familiar with the will back 15-20 early-stage startups, writing cheques between $1 million and $8 million. While the fund will primarily lead or join early rounds, it may selectively double down on 90% of the capital comes from global institutions, including endowments and fund-of-funds, with the remaining 10% contributed by Indian family offices and high-net-worth individuals. Northpoint is registered with Sebi and is awaiting final regulatory clearances to onboard limited partners (LPs).Verma, known for early bets on Postman, Unacademy, and at Nexus, plans to back founders building with AI and core technology in sectors such as fintech, healthcare, and logistics. ET first reported his independent ambitions in March of last joins a flurry of new funds in a cautious LP climate where capital is flowing to proven managers with sharp thesesETtech Top 5 and Morning Dispatch are must-reads for India's tech and business leaders, including startup founders, investors, policy makers, industry insiders and Reach out to us at spotlightpartner@ to explore sponsorship fashion industry has long grappled with waste, excess inventory, and growing environmental damage. As consumption surges, artificial intelligence (AI) is emerging as an unexpected ally , helping the sector tread more lightly on the (SaaS) firms like GreenStitch and Stylumia are arming brands and manufacturers with tools to:GreenStitch pulls massive datasets from across the supply chain to guide brands on compliance and trend forecasting. Stylumia and Zylod cut fashion waste by matching design with consumer brands and online retailer giants are pushing beyond basic AI assistants, using data to stay one step ahead of Raveendran and Divya Gokulnath, founders, Byju'sByju Raveendran and Divya Gokulnath are preparing to sue Glas Trust and other Byju's lenders, seeking over $2.5 billion in damages for what they claim is reputational harm. Their lawyers confirmed the move in a statement on founders plan to take the fight to both Indian and international courts. They've accused Glas Trust, Byju's US arm Alpha, and their legal teams of 'reprehensible and improper' lenders allege that Raveendran, Gokulnath, and former CSO Anita Kishore attempted to conceal $533 million from a $1.2 billion term loan. Earlier this month , a Delaware court held Raveendran in civil contempt for failing to is challenging the court's jurisdiction. In India, partial proceedings are underway, including a petition by former promoter Riju Ravindran to remove Glas Trust as a union government on Thursday told the Karnataka High Court that it invokes Rule 3(1)(d) of Information Technology Rules to flag illegal content to online intermediaries, who can decide whether to take down the material or risk the matter going to Corp launched a proprietary large language model (LLM) and a suite of artificial intelligence agents on Thursday as the software company seeks to deepen its AI 'faulty auto-translation of Kannada content on Meta Platforms is distorting facts & misleading users. This is especially dangerous when it comes to official communications,' CM Siddaramaiah wrote in a post on X.■ Where are all the AI drugs? ( Wired ■ Venture capitalists seek a ride on the defence bandwagon ( FT ■ Fed up with ChatGPT, Latin America is building its own ( Rest of World
Mint
5 days ago
- Business
- Mint
Wipro starts the year slow but pins hopes on large deals
Wipro Ltd has started the fiscal year on a gloomy note with a third consecutive revenue decline, but is pinning its hopes for a better second half on its large deals despite macroeconomic uncertainties. On Thursday, the Bengaluru-based information technology (IT) outsourcer reported $2.59 billion in revenue for the April-June first quarter, down 0.35% from the preceding three months and 1.47% lower from the corresponding year-ago period. Much of the company's revenue was dragged by banks and financial institutions, which are its biggest earners. Wipro's first-quarter revenue, however, was a tad higher than the average of $2.58 billion that 35 analysts polled by Bloomberg had expected. India's fourth-largest IT outsourcer also exceeded its April projection of between $2,505 million and $2,557 million in revenue for the June quarter. Wipro's Q1 performance was also in line with India's top five IT outsourcers. Tata Consultancy Services Ltd, the largest, ended the first quarter with $7.42 billion in revenue, down 0.59% sequentially, while HCL Technologies Ltd, the third-largest, reported $3.55 billion, up 1.34% from the January-March quarter. Tech Mahindra Ltd, India's fifth-largest IT services provider, reported Q1 revenue of $1.56 billion, up 0.97% on a quarterly basis. Infosys Ltd, India's second-largest IT outsourcer, will report its June-quarter results on 23 July. 'We started the quarter facing significant macro uncertainty, which kept overall demand muted," said Srinivas Pallia, chief executive of Wipro, during the company's post-earnings press briefing on Thursday. TCS and Tech Mahindra have also pointed to uncertainty in the macro environment resulting in decision-making and project implementation delays by customers, although HCLTech's management has said the macroeconomic environment is stable. 'I would certainly say that there is uncertainty. So the whole aspect of geopolitics continues, the aspect of tariff continues, and each of the industries and each of the countries have a different situation," said Pallia. A healthy deal pipeline, but… Wipro is confident of a turnaround because of a healthydeal pipeline. 'The large deals we closed this quarter, and, of course, the last quarter, along with a strong pipeline, put us in a good position for the second half of the year," said Pallia. The IT services company's large deal wins in the first quarter jumped 51% to $2.67 billion. Much of this increase was because of two 'mega deals" that the company won in the banking, financial services, and insurance (BFSI) sector in the first quarter, and a third large deal that could become a mega deal later. Wipro considers deals with contract value of $30 million and above as large deals. At least one analyst gave Wipro's latest quarterly performance a thumbs-up. 'Strong large deal wins coupled with an inline guidance for the September quarter (-1% to 1% quarter-on-quarter in constant currency terms) are encouraging even as the company announced an interim dividend of ₹5," said Manik Taneja, executive director of IT services for Axis Capital. 'Wipro remains the cheapest tier 1 IT services stock and these results only lend confidence that Wipro is certainly steading well under the current CEO," Taneja added. Wipro ended Thursday's trading on NSE down 1.54% at ₹258.75 per share, before the quarterly earnings results were announced. The Nifty IT index fell 1.39%. Wipro expects a better second half (October 2025 to March 2026), but does not see its big-ticket deals filling the company's revenue coffers immediately. 'In terms of deal wins and conversions, some of the deals that we won have a good balance of both extending the work that we do, and there is an element of expansion," Wipro's chief financial officer Aparna Iyer said during the press briefing. '(But) given the nature of these deals, they will take about six to eight quarters for them to just fully ramp up." A steep climb for Pallia Even as Wipro's large order book and pipeline might show positive signs for Pallia, who completed a year as the company's CEO in May, he faces the challenge of steering it to growth after two years of full-year revenue decline. The IT services company has projected revenue of $2.56 billion to $2.61 billion for the July-September second quarter. According to Wipro's management, its cautious guidance factors in near-term demand challenges and client visibility. Even if Wipro reports at the upper end of its revenue guidance for the second quarter, it will still face a herculean task in the second half of the fiscal year. The company will have to report revenue of at least $2.66 billion in the third and fourth quarters each if it has to match its 2024-25 revenue of $10.51 billion in 2025-26. HCLTech has projected revenue growth of 3-5% in constant currency terms. TCS and Tech Mahindra do not provide yearly or quarterly revenue outlook. Much of Wipro's revenue decline in the first quarter came from Europe, which makes up a little more than a fourth of the company's revenue. The company earned $665 million from clients based in Europe, down 1.7% sequentially. Net profit in the first quarter declined 7.38% sequentially to $389 million. Wipro also reported 17.3% in operating margin for the quarter, down 20 basis points sequentially. One basis point is a hundredth of a percentage point. TCS and Tech Mahindra reported a jump in profitability to 24.5% and 11.1%, respectively, whereas HCLTech reported a 160 basis points decline in margins to 16.3%. Lower headcount and murkier waters Wipro became India's third large IT outsourcer to cut headcount in the first three months of this financial year. The tech outsourcer ended the first quarter with 233,232 employees, 114 fewer from the preceding three months, even as it focuses on specialised hiring. HCLTech cut headcount by 269 people to end the first quarter with 223,151 employees, while Tech Mahindra's headcount fell by 214 to 148,517 employees. As of now, TCS is the only top IT outsourcer in the country to have added headcount during the June quarter—up by 5,090 people to end the period with 613,069 employees. Three of the country's five largest IT outsourcers cutting headcount signals to murkier waters ahead. More headcount in an IT services company means more demand for their IT services. The decrease in headcount comes in the backdrop of a tariff war started by US President Donald Trump coupled with geopolitical uncertainties. These can put IT spending by large companies, many of which count Wipro as their IT vendor, in limbo.
Time of India
5 days ago
- Business
- Time of India
Wipro Q1 FY25 results: Net profit rises 9.8% YoY to Rs 3,336 crore; IT services guidance flat for Q2
Wipro representative image IT major Wipro reported a 9.8% year-on-year increase in consolidated net profit to Rs 3,336.5 crore for the June quarter (Q1 FY25), as per its regulatory filing released on Thursday. In the same quarter last year, the company had posted a profit of Rs 3,036.6 crore. Wipro's consolidated revenue from operations stood at Rs 22,134.6 crore during the April–June period, registering a marginal growth compared to Rs 21,963.8 crore in the corresponding quarter of the previous year. Commenting on the results, Wipro MD and CEO Srini Pallia said that the quarter was influenced by macroeconomic uncertainty, leading clients to prioritise cost optimisation and operational efficiency. 'We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals,' said Pallia, as quoted by PTI. "Building on the momentum from the last quarter and supported by a strong pipeline, we are well positioned for the second half. AI is no longer experimental- it's central to our clients' strategies, and we are delivering real impact at scale," he added. Flat growth forecast for Q2 For the September quarter (Q2 FY25), Wipro provided a sequential revenue guidance of -1% to 1% in constant currency terms. The company expects its IT services revenue to be in the range of $2,560 million to $2,612 million. On Thursday, Wipro shares closed 0.93% lower at Rs 260.25 apiece on the BSE. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Deccan Herald
23-05-2025
- Business
- Deccan Herald
Rishad Premji's pay doubles; still no match to that of Wipro CEO
Bengaluru: Wipro Ltd Executive Chairperson Rishad Premji's remuneration more than doubled to $1.6 million, however was much lesser than company Chief Executive Officer (CEO) Srinivas Pallia's earnings of $6.2 million in the financial year 2025 (FY25), according to the company's latest annual report. Pallia was appointed the CEO last year in April after Thierry Delaporte's Thierry Delaporte's compensation was much higher than Pallia's in FY25. Delaporte's FY24 salary was $20 million, one of the highest paid CEOs in India's IT industry. .Goldman Sachs' Sandeep Dhar to helm Wipro's GCC Premji and Srinivas Pallia are also entitled to a commission at the rate of 0.35% on incremental consolidated net profits of the company over the previous fiscal FY24, Premji had voluntarily taken a 20% pay cut and foregone his commission due to a dip in consolidated profits. He earned a total of $769,456 million that year. The turnaround in FY25 — driven by an 18.9% rise in net profit to Rs 13,135.4 crore allowed him to collect a higher payout, although he received no stock options for the year.
Economic Times
22-04-2025
- Business
- Economic Times
ICICI Securities maintains Reduce call on Wipro, lowers target price to Rs 230
Wipro's key products/revenue segments include Software Services, Networking, Storage equipment, Servers, Software Licenses for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 23692.50 crore, up 1.58% from last quarter Total Income of Rs 23322.90 crore and up 3.64% from last year same quarter Total Income of Rs 22861.20 crore. The company has reported net profit after tax of Rs 3559 crore in the latest quarter. The company?s top management includes A Premji, Pallia, Mr.N S Kannan, Vittal, Dupuis, J Ennis, M Satwalekar, Naidu, H Premji, Rekonen. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 1,047 crore shares outstanding. Live Events Investment Rationale Wipro's Q1FY26 revenue guidance of -3.5% to -1.5% QoQ CC is the weakest ever (except Covid and GFC quarters), implying heightened uncertainty in client decision making due to global tariff war. Guidance factors in a pause in large transformation projects, ramp downs and delays in decision making. Large deal wins were strong (+17% YoY), but total bookings were down 4% YoY due to softness in smaller discretionary deals (down 13.4% YoY) in FY25. Weak guidance implies continued underperformance and yet another year of revenue decline for Promoter/FII Holdings Promoters held 72.73 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.35 per cent, DIIs 7.45 per cent. (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel ICICI Securities maintains a Reduce call on Wipro with a revised target price of Rs 230 (Rs 241 earlier). The current market price of Wipro Ltd. is Rs 238.95. Wipro, incorporated in 1945, is a Large Cap company with a market cap of Rs 248084.90 Crore) operating in IT Software key products/revenue segments include Software Services, Networking, Storage equipment, Servers, Software Licenses for the year ending the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 23692.50 crore, up 1.58% from last quarter Total Income of Rs 23322.90 crore and up 3.64% from last year same quarter Total Income of Rs 22861.20 crore. The company has reported net profit after tax of Rs 3559 crore in the latest company?s top management includes A Premji, Pallia, Mr.N S Kannan, Vittal, Dupuis, J Ennis, M Satwalekar, Naidu, H Premji, Rekonen. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2025, the company has a total of 1,047 crore shares Q1FY26 revenue guidance of -3.5% to -1.5% QoQ CC is the weakest ever (except Covid and GFC quarters), implying heightened uncertainty in client decision making due to global tariff war. Guidance factors in a pause in large transformation projects, ramp downs and delays in decision making. Large deal wins were strong (+17% YoY), but total bookings were down 4% YoY due to softness in smaller discretionary deals (down 13.4% YoY) in FY25. Weak guidance implies continued underperformance and yet another year of revenue decline for Wipro in FY26. ICICI Securities cuts its EPS estimates by 5%/4% for FY26/27E led by a cut in revenue estimates and currency (INR/USD) rate. They continue to value Wipro at 18x from Q4FY26 to Q3FY27 EPS of Rs 13 to arrive at a revised target price of Rs 230. The brokerage maintains held 72.73 per cent stake in the company as of 31-Mar-2025, while FIIs owned 8.35 per cent, DIIs 7.45 per cent. (Disclaimer: Recommendations given in this section or any reports attached herein are authored by an external party. Views expressed are that of the respective authors/entities. These do not represent the views of Economic Times (ET). ET does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same. Please consult your financial adviser and seek independent advice.
