Latest news with #SriniPallia
Time of India
3 days ago
- Business
- Time of India
Wipro ordered to pay Rs 2 lakh compensation for defamatory remarks in employee's relieving letter
The Delhi High Court has directed Wipro to pay Rs 2 lakh in damages to a former employee due to defamatory statements in his relieving letter. The court instructed Wipro to issue a new letter, removing remarks that harmed the employee's professional reputation and character. This decision emphasizes professional dignity and prevents unfair damage to career prospects. Tired of too many ads? Remove Ads Former employee challenged content of termination letter Court rules in favour of professional dignity Tired of too many ads? Remove Ads Wipro directed to remove defamatory statements Wipro faces revenue and margin pressure in June quarter CEO highlights focus on AI and cost optimisation Operating margins dip sequentially, but show annual improvement Strong deal momentum despite revenue pressure Muted hiring and modest guidance for next quarter In a recent judgment, the Delhi high court directed Wipro to pay Rs 2 lakh in damages to a former employee over defamatory statements made in his relieving letter . The court also instructed the company to issue a new letter, removing the remarks that harmed the employee's professional reputation and character, a TOI report former employee had worked as a principal consultant at Wipro from March 14, 2018, to June 5, 2020. After his departure, the company issued a relieving letter which described his conduct as 'malicious' and claimed that his actions led to an 'irreparable breakdown in the employer-employee relationship,' according to the court by the content, the ex-employee approached the court seeking removal of the defamatory remarks and issuance of a clean termination high court held that the content in the letter caused reputational harm, emotional distress, and a loss of professional credibility to the petitioner. It stated that allowing such remarks to remain on record would unfairly damage the individual's professional court said, 'Issuance of a fresh letter and expungement of remarks shall not alter the decision of termination of the petitioner in any manner.'The court ordered Wipro to remove all such remarks related to the employee's professional character and to issue a fresh termination letter without any defamatory content. The original letter will now hold no effect with respect to the defamatory Rs 2 lakh awarded by the court is to be treated as general compensatory during the June quarter, Wipro recorded a 2.3% drop in revenue in constant currency terms. The decline, however, remained within the company's forecast range of –3.5% to –1.5%. The firm attributed the muted performance to a slowdown in client spending amid economic CEO Srini Pallia noted that clients remained cautious with discretionary spending and were instead focusing on initiatives with immediate returns. 'Our clients prioritised initiatives with immediate impact, focusing on cost optimisation and vendor consolidation. At the same time, they accelerated their AI, data, and modernisation programs,' Pallia operating margin declined slightly to 17.3% in Q1 from 17.5% in the previous quarter. However, this reflected an 80-basis-point increase compared to the same quarter last year. CFO Aparna Iyer explained that the flat utilisation and currency impact were balanced out by cost savings and operational the revenue decline, Wipro secured strong deal wins during the quarter. The total contract value stood at $5 billion, marking a 50.7% rise over the previous year. Of this, $2.7 billion came from large deals, more than doubling compared to last year. Execution of these projects is expected to stretch over the next 6–8 Wipro reported 1.5% growth in constant currency from the Americas, while revenue in APMEA remained stable, supported by digital spending. Europe remained weak due to continued cost pressures, Pallia said, though the banking and financial services segment saw steady expects flat to marginally negative revenue growth in the September quarter, guiding for a range of -1% to 1% in constant currency. The company's headcount dropped by 114 during the June quarter, ending with 233,232 employees.
Business Standard
4 days ago
- Business
- Business Standard
Wipro gains as Q1 PAT jumps 11% YoY to Rs 3,330 cr; declares dividend of Rs 5/sh
Wipro rose 2.66% to Rs 266.55 after the IT major's consolidated net profit jumped 10.89% to Rs 3,330.4 crore on 0.77% rise in revenue from operations to Rs 22,135 crore in Q1 FY26 over Q1 FY25. On a quarter on quarter (QoQ) basis, the IT firms net profit declined 6.7%, while revenue rose 1.64% in Q1 FY26. Profit before tax was at Rs 4,258.3 crore during the quarter, down 10.29% quarter on quarter (QoQ) but up 5.89% (YoY). In dollar terms, Wipro's gross revenue for Q1 FY26 stood at $2,581.6 million, registering a 1.6% decrease QoQ and a 0.8% rise YoY. The revenue from its IT services segment was $2,587.4 million, marking a decline of 2.0% QoQ and 2.3% YoY. In Q1 FY26, Wipro's IT services segment reported an operating margin of 17.3%, contraction of 0.2% QoQ and expansion of 0.8% YoY. The Non-GAAP constant currency revenue for the IT services segment decreased by 2.0% QoQ and 2.3% YoY. During the quarter, the IT Companys total booking was at $4,971 million, up by 24.1% QoQ and 50.7% YoY in constant currency. Large deal booking was at $2,666 million, an increase of 49.7% QoQ and 130.8% YoY in constant currency. The company said that its closing employee count in IT Services stood at 233,232. Voluntary attrition was at 15.1% on a trailing 12-month basis. For the quarter ending 30 September 2025, Wipro expects revenue from its IT Services business segment to be in the range of $2,560 million to $2,612 million. This translates to sequential guidance of -1.0% to -1.0% in constant currency terms. Srini Pallia, CEO and managing director, said In a quarter shaped by macroeconomic uncertainty, clients prioritised efficiency and cost optimization. We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from last quarter and supported by a strong pipeline, we are well positioned for the second half. AI is no longer experimental - its central to our clients strategies, and we are delivering real impact at scale. Aparna Iyer, chief financial officer (CFO), said We expanded our operating margins by 80 basis points on YoY basis. Our cash flow conversion remained strong with operating cash flows being at 123% of our net income. The board also declared an interim dividend of Rs 5 per share. With this, the total cash returned to shareholders over the last 6 months is more than $1.3 Bn. Meanwhile, the company has announced an interim dividend of Rs 5 per equity share, for its members as of the record date, 28 July 2025. The payment will be made on or before 15 August 2025. Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients' most complex digital transformation needs.
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
Wipro shares see best day in over 2 months post Q1 results; time to buy?
Shares of Wipro Ltd. rose over 4 per cent on Friday after the technology major's first-quarter earnings met the street expectations. However, analysts remained mixed on the margin outlook while growth visibility is seen improving. The technology bellwether's stock rose as much as 4.34 per cent during the day to ₹271.9 per share, the biggest intraday gain since May 12 this year. The stock pared gains to trade 2.6 per cent higher at ₹267.5 apiece, compared to a 0.25 per cent decline in Nifty 50 as of 9:53 AM. Wipro Q1 results The fourth-largest tech services firm reported a 6.7 per cent sequential decline in its net profit to ₹3,330 crore for the first quarter of the current financial year (Q1FY26). Year-on-year (Y-o-Y), profit was up 10.9 per cent. Revenue for Q1 stood at ₹22,134.6 crore, down 1.6 per cent on a quarter-on-quarter (Q-o-Q) basis. The top line was marginally up by 0.77 per cent Y-o-Y. The company's Q1 performance marginally beat Bloomberg estimates. Revenue was expected at ₹22,078.3 crore and net profit at ₹3,249.4 crore. The company had healthy deal bookings, which stood at about $5 billion for the quarter ended June 30. Large deal bookings were up 131 per cent to $2.66 billion. That led the IT services player to improve its guidance for the second quarter (July-September). Wipro now expects to degrow by 1 per cent at worst, or grow by 1 per cent at best, in constant currency terms. Wipro Management commentary The drop in revenue to a muted quarter was attributed to continuing macroeconomic uncertainty. 'We remain cautious in this environment, and the uncertainty continues,' Wipro Chief Executive Officer Srini Pallia said on Thursday. 'While discretionary budgets are tight, we see strong deal momentum in America, especially in banking, financial services and insurance (BFSI), where demand is strong and steady. Healthcare is also doing well,' he added. Analysts on Wipro Q1 results Nomura said that Wipro delivered a strong performance in the first quarter of FY26, surpassing expectations across most key metrics. A sharp pickup in deal wins was a notable highlight. However, Nomura cautions that the near-term outlook could face margin headwinds. Wipro's management acknowledged that recent deal wins would require upfront investments, which may temporarily weigh on profitability. Given the expected impact from the recent projects, Nomura has revised its FY26 Ebit margin forecast downward by 80 basis points to 16.2 per cent. Motilal Oswal expects Wipro's FY26 constant currency (CC) revenue to decline by 1.3 per cent Y-o-Y, citing a weak start to the year. The company's IT services Q2 revenue guidance remains muted, it noted. A gradual recovery is anticipated in the second half, as large deal ramp-ups begin to reflect in revenue. The brokerage believes there is limited scope for margin expansion from current levels. The firm maintained its 'Sell' rating, with a target price of ₹230. Nuvama Institutional Equities noted that Wipro delivered a better-than-expected Q1 performance, though it noted that expectations were already muted. The brokerage sees strong deal wins as a positive signal that could drive growth in the upcoming quarters. However, it remains cautious, awaiting clearer signs of macroeconomic improvement and consistency in execution before turning bullish. Margins are expected to remain under pressure, Nuvama said. The firm maintains a 'Hold' rating on the stock, with a revised target price of ₹270 (up from ₹260). Wipro share price history Shares of the company have recovered by 14 per cent from their April lows and currently trade at 10 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 12 per cent this year, compared to a 5.8 per cent advance in the benchmark Nifty 50. Wipro has a total market capitalisation of ₹2.79 trillion.
Times of Oman
4 days ago
- Business
- Times of Oman
Wipro reports 0.8% yearly rise in gross revenue in Q1 2025-26
Bengaluru: Technology services and consulting company Wipro on Thursday announced financial results for the quarter ended June 30, 2025. The company reported gross revenue at Rs 221.3 billion (USD 2,581.6 million), a decrease of 1.6 per cent quarter-on-quarter and an increase of 0.8 per cent year-on-year. The IT services segment revenue was at USD 2,587.4 million, a decrease of 0.3 per cent QoQ and 1.5 per cent YoY. The IT services operating margin for the quarter was at 17.3 per cent, a contraction of 0.2 per cent QoQ and expansion of 0.8 per cent YoY. The net income for the quarter was at Rs 33.3 billion (USD 388.4 million), a decrease of 6.7 per cent QoQ and an increase of 10.9 per cent YoY. Srini Pallia, CEO and Managing Director, said, "In a quarter shaped by macroeconomic uncertainty, clients prioritised efficiency and cost optimisation. We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from 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." Aparna Iyer, Chief Financial Officer, said "We expanded our operating margins by 80 basis points on YoY basis. Our cash flow conversion remained strong with operating cash flows being at 123 per cent of our net income. The board also declared an interim dividend of INR 5 per share. With this, the total cash returned to shareholders over the last 6 months is more than USD 1.3 Bn." Wipro said it expects revenue from the IT Services business segment to be in the range of USD 2,560 million to USD 2,612 million in the July-September quarter. This translates to sequential guidance of (-) 1.0 per cent to 1.0 per cent in constant currency terms. Wipro has over 230,000 employees and business partners across 65 countries.
Economic Times
4 days ago
- Business
- Economic Times
Wipro shares in focus after Q1 profit rises 11% YoY to Rs 3,330 crore
Shares of Wipro are likely to remain in focus on Friday after the IT services company reported an 11% year-on-year (YoY) increase in its consolidated net profit for Q1FY26, at Rs 3,330 crore compared to Rs 3,003 crore in the same quarter last year. ADVERTISEMENT The profit attributable to equity holders slightly exceeded Street estimates of Rs 3,233 crore. Wipro also declared an interim dividend of Rs 5 per share for FY26. The record date is July 28, and the dividend will be paid on or before August 15, 2025. Also Read: 9 undervalued mid-cap stocks with upside potential of up to 23% The IT services company's revenue from operations rose marginally by 0.7% to Rs 22,134 crore, compared to Rs 21,963 crore in the year-ago profit after tax (PAT) declined nearly 7% sequentially from Rs 3,570 crore reported in Q4FY25. ADVERTISEMENT Also Read: SBI, Federal Bank among 11 banks that saw NPA improvement in Q4 Wipro expects revenue from its IT services segment to be in the range of $2,560 million to $2,612 million in Q2FY26, implying sequential growth of -1.0% to 1.0% in constant currency terms. ADVERTISEMENT - Gross revenue was reported at Rs 22,130 crore ($2,581.6 million), marking a 1.6% QoQ decline and a 0.8% YoY increase.- IT services segment revenue stood at $2,587.4 million, down 0.3% QoQ and 1.5% YoY. ADVERTISEMENT - Non-GAAP constant currency IT services segment revenue declined 2.0% QoQ and 2.3% YoY.- Total bookings came in at $4,971 million, up 24.1% QoQ and 50.7% YoY in constant currency. ADVERTISEMENT Large deal bookings were reported at $2,666 million, a sharp rise of 49.7% QoQ and 130.8% YoY in constant currency.- The IT services operating margin for Q1FY26 stood at 17.3%, a 0.2% contraction QoQ, but a 0.8% expansion YoY.- Net income declined 6.7% sequentially.- Operating cash flows stood at Rs 4,110 crore ($479.6 million), up 9.8% QoQ and 2.9% YoY, and at 123.2% of net income for the quarter.- Voluntary attrition was at 15.1% on a trailing 12-month on the earnings, Srini Pallia, CEO and Managing Director, said the quarter was shaped by macroeconomic uncertainty, with clients prioritising efficiency and cost optimisation.'We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from 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 to Trendlyne, the average target price for Wipro is Rs 256, implying a potential downside of nearly 2% from current the 43 analysts tracking the stock, the consensus rating is 'Hold'. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
