Wipro Limited (WIT): history, ownership, mission, how it works & makes money

A Brief History of Wipro Limited

Company Overview

Wipro Limited, founded in 1945, is a leading global information technology, consulting, and business process services company. Headquartered in Bangalore, India, Wipro has established a significant presence in various markets, particularly in IT services.

Financial Performance as of 2024

For the six months ended September 30, 2024, Wipro reported a total income of ₹ 459,570 million, slightly increasing from ₹ 467,269 million in the previous year. The company achieved a profit for the period of ₹ 62,632 million, compared to ₹ 55,533 million for the same period in 2023.

Revenue Breakdown

The revenue from operations for Wipro for the three months ended September 30, 2024, was ₹ 223,016 million. This reflects a marginal decrease from ₹ 225,159 million in the corresponding quarter of the previous year.

Balance Sheet Highlights

As of September 30, 2024, Wipro's total assets stood at ₹ 1,260,097 million, an increase from ₹ 1,152,459 million at the end of March 31, 2024. The total equity attributable to equity holders was ₹ 815,566 million, up from ₹ 746,670 million.

Cash Flow Insights

For the six months ended September 30, 2024, Wipro generated ₹ 82,648 million in cash from operating activities, compared to ₹ 76,146 million in the previous year. The cash flows from investing activities were negative, totaling ₹ (89,919) million, while cash flows from financing activities reflected a net inflow of ₹ 14,284 million.

Recent Developments

Wipro's strategic initiatives include a focus on digital transformation, cloud services, and artificial intelligence, aiming to enhance service offerings and improve client engagement. The company has also engaged in share buybacks, concluding the buyback of 269,662,921 equity shares at a price of ₹ 445 per share during the previous fiscal year, resulting in total cash outflow of ₹ 145,173 million.

Market Position

As of 2024, Wipro continues to be a significant player in the IT services sector, competing with major firms such as TCS, Infosys, and Accenture. The company is well-regarded for its commitment to sustainability and corporate social responsibility.

A Who Owns Wipro Limited (WIT)

Major Shareholders

As of 2024, Wipro Limited has a diverse ownership structure with significant holdings by institutional investors and retail shareholders. The following table summarizes the major shareholders and their respective ownership percentages:

Promoter Holdings

The promoter of Wipro Limited, Azim Premji, holds a substantial share of the company. As of September 30, 2024, his ownership stands at 73.1%, which is indicative of strong promoter confidence in the company's future performance.

Institutional Holdings

Institutional investors play a crucial role in the equity structure of Wipro. The combined ownership of the top three institutional investors, Vanguard, BlackRock, and State Street, accounts for approximately 19.5% of the total shares, reflecting a strong interest from institutional players in the technology sector.

Retail Shareholders

Retail investors collectively hold about 7.4% of Wipro’s shares, indicating a moderate level of public participation in the company's ownership.

Share Buyback Program

Wipro Limited executed a share buyback program in 2023, repurchasing approximately 269,662,921 equity shares at a price of ₹445 per share, leading to a total cash outflow of ₹145,173 million.

Recent Changes in Ownership

The ownership structure has remained relatively stable, with the most significant change being the buyback of shares. This has effectively reduced the total number of shares available in the market and has implications for future earnings per share (EPS) calculations.

Market Capitalization

The market capitalization of Wipro Limited as of September 30, 2024, is approximately ₹1,152,459 million.

Conclusion on Ownership Structure

The ownership of Wipro Limited reflects a blend of institutional and retail investors, with significant control maintained by the promoter, Azim Premji. This structure supports stability and confidence in the company's strategic direction and governance.

Wipro Limited (WIT) Mission Statement

Company Overview

Wipro Limited, a leading global information technology, consulting, and business process services company, emphasizes a commitment to delivering innovative solutions that enable clients to succeed in an ever-changing digital landscape.

Mission Statement

Wipro's mission is to "sustainably deliver innovative solutions that empower businesses and improve lives." This mission reflects Wipro's dedication to sustainable practices and the integration of technology in enhancing customer experiences.

Core Values

• Integrity: Upholding the highest standards of integrity in all actions.
• Excellence: Striving for excellence in every aspect of work.
• Innovating: Constantly pushing the boundaries of innovation.
• Respect: Respecting individuals and fostering a culture of inclusivity.
• Responsibility: Taking responsibility for the community and environment.

Financial Performance Indicators (2024)

Wipro has demonstrated strong financial performance in recent quarters. Below is a summary of the latest financial data as of September 30, 2024:

Recent Strategic Initiatives

Wipro has engaged in several strategic initiatives to align with its mission and enhance its market position:

• Investment in AI and automation to improve service delivery and operational efficiency.
• Expansion of cloud services to meet growing demand for digital transformation.
• Commitment to sustainability by reducing carbon footprint and promoting green practices.

Market Position

As of 2024, Wipro is positioned among the top IT service providers globally, competing with major players such as Tata Consultancy Services (TCS), Infosys, and Accenture. The company's focus on innovation and customer-centric solutions has been instrumental in maintaining its competitive edge.

Conclusion

Wipro Limited's mission statement encapsulates its commitment to innovation, sustainability, and customer success. The company's ongoing financial strength, strategic initiatives, and core values reflect its dedication to achieving its mission in the dynamic global market.

How Wipro Limited (WIT) Works

Company Overview

Wipro Limited, listed on the NYSE under the ticker WIT, is a leading global information technology, consulting, and business process services company. As of 2024, Wipro operates in over 50 countries and employs more than 250,000 professionals.

Financial Performance

For the six months ending September 30, 2024, Wipro reported the following financial metrics:

Balance Sheet Highlights

As of September 30, 2024, Wipro's balance sheet reflects the following key figures:

Operational Segments

Wipro's operations are organized into several segments, primarily:

• IT Services
• Business Process Services
• Consulting Services
• Product Engineering Services
• Cloud and Infrastructure Services

Recent Developments

Wipro completed a buyback of 269,662,921 equity shares at ₹445 per share, resulting in a total cash outflow of ₹145,173 million, including tax and transaction costs.

Investment and Growth Strategy

Wipro is focusing on expanding its digital transformation services, enhancing cloud capabilities, and investing in AI and machine learning technologies to drive growth. The company has also been actively acquiring firms to bolster its consulting and cybersecurity offerings.

Market Position

Wipro is one of the top IT service providers globally, competing with major players such as Tata Consultancy Services, Infosys, and Accenture. As of 2024, Wipro is positioned well within the industry, driving innovation and maintaining a strong client base across various sectors.

Conclusion

Wipro's robust financial performance, strategic acquisitions, and commitment to innovation position it favorably for future growth in the competitive IT landscape.

How Wipro Limited (WIT) Makes Money

Revenue Sources

Wipro Limited generates revenue primarily through its IT services and products. For the three months ended September 30, 2024, Wipro reported:

• Revenue from operations: ₹223,016 million
• Other income: ₹9,619 million
• Total income: ₹232,635 million

Comparatively, for the same period in 2023, the figures were:

• Revenue from operations: ₹225,159 million
• Other income: ₹7,398 million
• Total income: ₹232,557 million

Segment Performance

Wipro's revenue is segmented geographically, with significant contributions from various regions:

Cost Structure

For the three months ended September 30, 2024, Wipro's expenses were as follows:

• Employee benefits expense: ₹134,695 million
• Sub-contracting and technical fees: ₹24,582 million
• Depreciation, amortization and impairment expense: ₹8,308 million
• Finance costs: ₹3,569 million
• Total expenses: ₹142,338 million

In comparison, for the same period in 2023, total expenses were ₹145,170 million.

Profitability Metrics

Wipro's profitability for the three months ended September 30, 2024, was as follows:

• Profit before tax: ₹42,778 million
• Profit for the period: ₹27,135 million

For the same period in 2023, profit metrics were:

• Profit before tax: ₹35,092 million
• Profit for the period: ₹20,613 million

Cash Flow Overview

For the six months ended September 30, 2024, Wipro's cash flow from operating activities was:

• Net cash generated from operating activities: ₹71,547 million

In comparison, for the same period in 2023, net cash generated was ₹63,860 million.

Article updated on 8 Nov 2024

Resources:

• Wipro Limited (WIT) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Wipro Limited (WIT)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Wipro Limited (WIT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.