Latest news with #SrinivasPallia
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.
India.com
27-05-2025
- Business
- India.com
Azim Premji's son, Rishad Premji's salary doubled to Rs 130000000, still lesser than Wipro's…, who earns Rs…
Wipro Executive Chairman Rishad Premji's remuneration more than doubled to USD 1.6 million (around Rs 13.7 crore) in the fiscal year ending March 31, 2025. However, it is still lower than the earnings of company CEO Srinivas Pallia, who received USD 6.2 million (around Rs 53.64 crore), as per the company's latest annual report. Premji, in the fiscal year 2023-24, did not take any commission since the company's incremental consolidated net profit for the year was negative, and took a pay cut of about 20 per cent with a salary of USD 769,456 (about Rs 6.4 crore). However, during the 2024-25 fiscal year, with the Bengaluru-headquartered firm reporting an 18.9 per cent rise in net profit to Rs 13,135.4 crore, Premji's remuneration more than doubled to USD 1.6 million (about Rs 13.7 crore) in FY25, from USD 769,456 (about Rs 6.4 crore) in FY24, Wipro's 20-F filings with the US Securities and Exchange Commission showed. Srinivas Pallia, who assumed the role of CEO and Managing Director on April 7, 2024, received a total compensation of USD 6.2 million (about Rs 53.64 crore) in FY25. Pallia's takeaway is less than half that of Wipro's former CEO Thierry Delaporte, who drew a salary of USD 20 million (about Rs 168 crore) in FY24. The document showed that Pallia earned about USD 1.7 million in salary and allowances, about USD 1.7 million as commission/variable pay, about USD 2.8 million classified as 'others', and USD 68,850 as long-term compensation. Rishad Premji and Srinivas Pallia are entitled to a commission at the rate of 0.35 per cent on incremental consolidated net profits of the company over the previous fiscal year, the filing said. Further, Pallia was granted 16,77,202 stock options for varying lock-in periods. There were no stock options granted to Premji in FY25. (With Inputs From PTI)
Time of India
26-05-2025
- Business
- Time of India
Wipro chairman Rishad Premji salary increases in FY2025, but remains significantly lower than CEO Srinivas Pallia
Wipro executive chairman Rishad Permji saw his salary more than double ion FY25, reaching $1.6 million (Rs 13.7 crore). However, despite the increase in his pay, his earnings still remain significantly lower when compared to the company's CEO Srinivas Pallia, who took home $6.2 million (Rs 53.64 crore). This significant increase in the remuneration comes after a year where his compensation was notably lower. In FY24, Permji has taken a 20% pay cut and foregone his commission. After all the deductions he took home Rs 6.4 crore in FY24. This was attributed to the company's incremental consolidated net profit being negative for that fiscal year. However, this year the company reported 18.9% increase in net profit which allowed Premji's remuneration to rebound. Wipro chairman Rishad Premji's increased salary and previous pay cut As mentioned above, In FY24, Premji voluntarily took a 20% pay cut, earning $769,456 (Rs 6.4 crore) and forgoing his commission due to Wipro's negative net profit. However, with Wipro reporting an 18.9% rise in net profit to Rs 13,135.4 crore in FY25, his remuneration doubled. Both Premji and Pallia are entitled to a 0.35% commission on the incremental consolidated net profit of the company compared to the previous fiscal year. Wipro CEO Srinivas Pallia's earnings and compensation Meanwhile, Srinivas Pallia, who assumed the role of CEO and Managing Director in April 2024, received a total compensation of approximately Rs 53.64 crore ($6.2 million) in FY25. This package includes a salary and allowances of about $1.7 million, commission or variable pay of around $1.7 million, and approximately $2.8 million classified under 'others,' along with $68,850 in long-term compensation. Pallia was also granted 1,677,202 stock options with varying lock-in periods, while no stock options were granted to Premji in FY25. It is interesting to note that Pallia's FY25 compensation is less than half of what his predecessor, Thierry Delaporte, earned in FY24, which was around Rs 168 crore ($20 million), making Delaporte one of the highest-paid CEOs in the Indian IT sector at the time. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
United News of India
24-05-2025
- Business
- United News of India
Wipro CEO earned more than Premji in FY25
Bengaluru, May 24 (UNI) Wipro Ltd has revealed that Chief Executive Officer and Managing Director Srinivas Pallia earned nearly four times more than Executive Chairman Rishad A Premji in the financial year 2024-25, with a total annual compensation of USD 6.28 million, compared to Premji's USD 1.61 million. According to the company's disclosure, Pallia received USD 1.70 million each as salary and variable pay, over USD 2.80 million under other components, and USD 68,850 in long-term deferred benefits, including stock units. Premji, on the other hand, drew USD 707,521 in salary, USD 824,233 as variable pay, and USD 77,123 in deferred benefits. Both executives are entitled to a commission of 0.35 per cent on the company's incremental consolidated net profits over the previous fiscal. The executive compensation structure at Wipro includes a fixed base salary and a variable performance-linked incentive under the Variable Pay Scheme, which applies across all levels. Long-term incentives such as time-based Restricted Stock Units (RSUs) and performance-based Stock Units (PSUs) are also granted, typically vesting over multiple years. Chief Financial Officer Aparna C. Iyer's total compensation stood at USD 846,735 for the year, which includes USD 219,943 in salary, USD 136,770 in variable pay, and USD 450,371 under other components. The company clarified that deferred benefits consist of contributions to Provident Fund, Pension Fund, and other statutory social security schemes, and are based on accumulated balances rather than final pay. Wipro further stated that no stock options were granted to Rishad Premji in FY25. Former CEO Thierry Delaporte, who stepped down on April 6, 2024, and was formally relieved on May 31, 2024, had his compensation for the transition period disclosed in the company's earlier filing. UNI BDN BM
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.
