Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 79

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 5
Chunk 79
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 18.8    %           19.1    %     
Health (1)                                         13.2    %           14.1    %     
Energy, Manufacturing and Resources                18.7    %           17.2    %     
Technology and Communications (1)                  15.9    %           15.3    %     
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(1)Effective October 1, 2024, the Company has reorganized its sectors by merging “Technology” and “Communications” into “Technology and Communications” sector, and by merging “Energy, Natural Resources and Utilities” and “Manufacturing” into “Energy, Manufacturing and Resources” sector. Comparative period revenue by sectors information has been restated to give effect to this change.
IT Services results of operations for the years ended March 31, 2025 and 2024
The IT Services segment revenue decreased marginally by 0.63% for the year ended March 31, 2025 compared to our revenue for the year ended March 31, 2024. The decline was largely due to challenges in the macroeconomic environment as a result of which clients remained cautious and continued to cut down their discretionary spending during the year ended March 31, 2025. During fiscal 2025, the revenue from Americas 1 and Americas 2 grew, while revenue from Europe and APMEA declined.
Our gross profit as a percentage of our revenue from our IT Services segment increased by 51 bps, primarily due to rigorous focus on operational improvements, including a decrease in sub-contracting costs as a percentage of IT Services revenue from 11.32% for the year ended March 31, 2024 to 11.07% for the year ended March 31, 2025. Optimization of overheads, such as travel expenses of ₹ 1,533 million and communication expenses of ₹ 833 million, also contributed to improvement in gross profit. Further, our total employee compensation costs decreased by ₹ 3,023 million primarily due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. The depreciation of the Indian Rupee against foreign currencies, including the U.S.$, the Euro and the GBP, also contributed to improvement in gross margin. These cost optimizations have been partially offset by an increase in software license expenses for internal use of ₹ 1,389 million due to new technology implementation.
Selling