Changes in tariffs, US immigration policies may negatively hit revenues, biz: Wipro

New Delhi, May 23 (PTI) IT firm Wipro has cautioned that escalations in tariffs and trade policies of "certain countries with large economies", and changes in US immigration laws may negatively hit its revenues and business.

In its annual report for FY25, Wipro noted that ongoing global trade tensions and evolving regulatory environments pose significant risks to its operations, particularly as the company relies heavily on international markets for growth.

"Our revenues are highly dependent on clients primarily located in the Americas (including the US) and Europe, as well as on clients concentrated in certain industries; therefore, an economic slowdown or factors that affect the economic health of the US, Europe or these industries would adversely affect our business," Wipro said.

The USD 280 billion company, which derives 62.3 per cent of its revenue from US clients, and 27 per cent from Europe, acknowledged its vulnerability to economic and policy shifts in these regions.

"If the economy in the Americas or Europe is volatile or uncertain or conditions in the global financial market deteriorate, pricing for our services may become less attractive and our clients are located in these geographies," it said.

Over the past weeks, the US’ on-now, off-now tariff moves have roiled global markets and many IT analysts fear that a bitter trade war and a possible slowdown in the American economy could take a toll on IT decision-making or curtail tech demand and spending from specific verticals.

Extreme protectionism, the imposition of tariffs, and trade wars may also result in weaker global trade and economic activity.

For IT companies, this means not only direct impacts from tariffs but also indirect effects such as reduced client spending and delayed technology investments due to economic uncertainty.

Further, Wipro said changes in immigration laws to restrict outsourcing of services internationally by domestic corporations in key markets, leading to limitation in the availability of certain work visas, or increase in visa fees, may impact the company's ability to staff projects promptly and negatively affect profitability.

"Restrictive changes to immigration laws in countries in which we operate, including the US, may limit outsourcing work, which may hamper our growth and cause our revenue to decline.

"We currently have sufficient personnel with valid non-immigrant worker visas and have increased hiring of local employees in the US to continue services to clients," Wipro said.

Wipro has 2,33,346 employees.

The Bengaluru-headquartered firm's FY25 profits rose 18.9 per cent to Rs 13,135.4 crore. However, revenues slipped a tad (0.74 per cent) to Rs 89,088.4 crore.

Wipro's Q1FY26 guidance sees a drop of 1.5-3.5 per cent in constant currency terms on a sequential basis. The firm expects business in the range of USD 2,505-2,557 million. PTI ANK ANK ANU ANU