Wipro CEO Srinivas Pallia announced that the company has implemented salary hikes effective September 1, 2024. Speaking at a media briefing following the Q1 FY25 results announcement, Pallia said “We implemented merit salary increase effective September 1, just nine months after the last cycle”.
Salary hikes delayed due to ‘unusual business cycle’
The IT giant postponed salary increases against the backdrop of macroeconomic uncertainties and weak demand in 2023. Wipro CFO Aparna Iyer said that the salary increments were delayed due to an unusual business cycle in 2023. Adding further, she said that the September rollout would normalize the company's annual raise schedule going forward.
The CFO noted that the company achieved an operating margin of 16.8 percent for the quarter, marking a 35-basis-point improvement from the previous quarter. Iyer said “This expansion in margins was achieved through operational improvements, even after absorbing one month of salary increases for our associates rolled out in September”.
Wipro reports 21.2% increase in net profits
At its earnings call, Wipro reported a 21.2% increase in its consolidated net profit to Rs 3,209 crore for the second quarter of FY25. Revenue from operations for the reporting quarter was Rs 22,301.6 crore, a nearly 1% decline from Rs 22,515.9 crore in Q2 FY24.
Wipro CEO and MD Srinivas Pallia said the Q2 was driven by strong execution, which enabled the IT giant to meet its expectations for revenue growth, bookings, and margins.
“We continued to expand our top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, consumer, technology and communications sectors,” he said. Pallia said the company will continue to invest towards building a “strong AI-powered Wipro”.
Salary hikes delayed due to ‘unusual business cycle’
The IT giant postponed salary increases against the backdrop of macroeconomic uncertainties and weak demand in 2023. Wipro CFO Aparna Iyer said that the salary increments were delayed due to an unusual business cycle in 2023. Adding further, she said that the September rollout would normalize the company's annual raise schedule going forward.
The CFO noted that the company achieved an operating margin of 16.8 percent for the quarter, marking a 35-basis-point improvement from the previous quarter. Iyer said “This expansion in margins was achieved through operational improvements, even after absorbing one month of salary increases for our associates rolled out in September”.
Wipro reports 21.2% increase in net profits
At its earnings call, Wipro reported a 21.2% increase in its consolidated net profit to Rs 3,209 crore for the second quarter of FY25. Revenue from operations for the reporting quarter was Rs 22,301.6 crore, a nearly 1% decline from Rs 22,515.9 crore in Q2 FY24.
Wipro CEO and MD Srinivas Pallia said the Q2 was driven by strong execution, which enabled the IT giant to meet its expectations for revenue growth, bookings, and margins.
“We continued to expand our top accounts, large deal bookings surpassed $1 billion once again, and Capco maintained its momentum for another consecutive quarter. We grew in three out of four markets, as well as, in BFSI, consumer, technology and communications sectors,” he said. Pallia said the company will continue to invest towards building a “strong AI-powered Wipro”.
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