Wipro to decide on salary hikes soon
What's the story
Wipro's Chief Human Resources Officer (CHRO) Saurabh Govil has announced that the company will soon make a decision on salary hikes. The announcement is expected after the senior management returns from the World Economic Forum in Davos. The IT services giant last revised its salaries in September 2024. This comes as Wipro reported its Q3 earnings on January 16.
Workforce update
Employee attrition and hiring plans
Govil also revealed that Wipro's employee attrition has decreased by over 2% in the October-December quarter. He expects it to remain at similar levels in Q4. The company hired around 5,400 freshers in Q3 and plans to onboard another 2,000-2,500 in Q4. For the entire year, Wipro aims to hire between 7,500 and 8,000 fresh graduates.
Financial performance
Revenue growth and margin improvement
Wipro's CEO Srini Pallia announced a 1.4% revenue growth in Q3, partly driven by the HARMAN acquisition. He said organic growth was within guidance but didn't provide a separate outlook for Q4. Meanwhile, CFO Aparna Iyer reported an improvement in margins to 17.6% in Q3, which have remained stable over the last eight quarters due to cost control and better performance on fixed-price projects.
Market standing
Market capitalization and stock performance
Wipro's current market capitalization is ₹2,80,262.09 crore. However, the company's stock has witnessed a decline of over 15% in the past year. The company absorbed one month of HARMAN DTS acquisition impact in Q3 and will account for two more months in the upcoming quarter. Despite these challenges, Wipro plans to continue investing in clients and large deals in its pipeline.