Wipro expects growth in FY25, propelled by GenAI and AI

Wipro, an IT services provider, is upbeat about its growth prospects in FY25 due to increasing customer expenditures in digital transformation, artificial intelligence (AI), and the use of generative AI (GenAI). This optimistic view is maintained despite the company’s slower-than-expected expansion.

“The IT services industry is expected to accelerate and drive decisions in fiscal year 2025 based on investments made by clients in key areas such as Artificial intelligence (AI), generative AI implementation, cost optimisation, operational excellence, digital transformation, and vendor consolidation,” Wipro stated in its most recent 20-F filings with the US Securities and Exchange Commission.

Wipro highlighted the present difficulties despite the upbeat outlook, such as companies’ cautious attitude to technology investments in the face of geopolitical tensions, rising inflation, interest rates, and economic uncertainty.

“Discretionary expenditure has decreased as a result of the macroeconomic climate. However, as businesses continue to give priority to cost-cutting and operational excellence efforts, we expect expenditures to steadily recover in fiscal year 2025,” Wipro said in the research.

Wipro’s revenue in FY24 was Rs 89,760 crore, a 3.8% year-over-year decrease. The business has set a sales projection for the quarter ending in June that falls between -1.5% and 0.5%.

The financial services, hi-tech, and telecom sectors showed lower client activity, while the manufacturing and consumer goods sectors invested carefully due to cost constraints and sluggish consumer spending. The organization also saw differences in customer behavior across various sectors. Positively, Wipro saw significant growth in the healthcare and automotive industries.

Additionally, Wipro said that businesses are putting more of an emphasis on sustainability and resilience and stressing the value of globalizing operations to take advantage of cost savings, talent access, and innovation possibilities.

Wipro is under price pressure in the IT products industry as a result of intense competition. “We continue to experience pricing pressures in our IT Products segment as a result of increased competition among IT companies,” the company said.

“We provide IT products as a complement to our IT services offerings rather than selling standalone IT products,” the study said. With a more selective approach to bidding for system integration assignments, our concentration remains on consulting and digital engagements.