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Wipro(WIT) - 2023 Q4 - Earnings Call Transcript
2023-04-28 00:56
Financial Data and Key Metrics Changes - The company recorded the strongest ever bookings in FY 2023, with total contract value bookings growing over 28% year-on-year [8] - Revenues grew 11.5% year-on-year in constant currency terms, totaling $11.2 billion for the full year [8] - Operating margin for the year was 15.7%, with cash conversion at 115% of net income compared to 91% in the previous year [9] - For Q4, total bookings were $4.1 billion, with revenue up 6.5% year-on-year in constant currency terms, but a sequential decline of 0.6% [11] - Operating margin for Q4 was 16.3%, which is 60 basis points higher than the full year margin [12] - Earnings per share (EPS) for Q4 was INR 5.61, marking the third consecutive quarter of EPS expansion [13] Business Line Data and Key Metrics Changes - All four strategic market units recorded over 10% revenue growth for FY 2023 [14] - In the Americas, revenue grew 6% in Q4 and 13% for the full year, driven by healthcare and medical devices [14] - Europe market delivered 9% revenue growth in Q4 and 12% for the full year, with Southern Europe and Germany showing significant growth [16] - APMEA market unit grew 8% year-on-year in Q4 and 10% for the full year, with Southeast Asia growing about 25% [16] - Cloud transformation services grew 22% year-on-year, while Applications and Data grew 18% year-on-year [18] Market Data and Key Metrics Changes - The Americas saw a 47% year-on-year growth in total contract value bookings for Q4, while Europe saw a 33% increase [11] - The company noted softness in the banking and financial services space due to the current macro environment [15] - The share of partner bookings as a percentage of total bookings rose from 25% in FY 2020 to 44% in FY 2023 [25] Company Strategy and Development Direction - The company is focusing on a growth plan for India and has merged its step enterprise segment with IT Services starting Q1 2024 [17] - The organizational model of four strategic market units and four global business lines aims to improve market position and agility [25] - The FullStride Cloud is identified as a significant growth driver, with a dedicated global business to accelerate growth [26] Management's Comments on Operating Environment and Future Outlook - The macro environment remains challenging, impacting business and projections, with guidance for the next quarter indicating a sequential decline of 3% to 1% in constant currency [30] - Management remains positive about the volume of business and backlog despite the current uncertainties [40] - The company expects to maintain margins similar to recent quarters, focusing on revenue stability before addressing margin challenges [54] Other Important Information - The company plans a buyback of INR 12,000 crores (approximately $1.8 billion), with a buyback price set at $4.45, subject to shareholder approval [35] - The company trained over 50,000 employees in demand-driven skills over the past year, with a focus on talent transformation [28] - Attrition rates have been steadily declining, ending the quarter at 14.1% [29] Q&A Session Summary Question: What are the underlying assumptions for the guidance of -3% to -1% in constant currency? - Management indicated that the guidance reflects the performance in bookings and macro uncertainties affecting sectors like banking and insurance [37][40] Question: Why is there a low correlation between high deal bookings and revenue? - Management explained that while deal wins have been strong, discretionary spending cuts by clients are impacting revenue conversion [48][49] Question: What is the outlook for margins going forward? - Management stated that while they aim to maintain current margins, the focus is on achieving revenue stability first [54][97] Question: How is the consulting business performing amid current market conditions? - Management noted that while there is some slowdown in discretionary spending, certain areas within consulting are still seeing demand [65][74] Question: What is the company's strategy regarding cash allocation post-buyback? - Management confirmed that they will maintain a healthy cash position post-buyback, continuing to generate cash flows for future investments [60][62]
Wipro(WIT) - 2023 Q3 - Earnings Call Transcript
2023-01-13 18:59
Wipro Limited (NYSE:WIT) Q3 2023 Results Conference Call January 13, 2023 9:00 AM ET Company Participants Dipak Kumar Bohra - Senior Vice President, Corporate Treasurer & IR Thierry Delaporte - Managing Director, Chief Executive Officer Jatin Dalal - Chief Financial Officer Stephanie Trautman - Chief Growth Officer Amit Choudhary - Chief Operating Officer Conference Call Participants Mukul Garg - Motilal Oswal Financial Services Abhishek Bhandari - Nomura Gaurav Rateria - Morgan Stanley Nitin Padmanabhan - ...
Wipro(WIT) - 2023 Q2 - Quarterly Report
2022-10-14 20:01
WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNDER IFRS AS AT AND FOR THE THREE AND SIX MONTHS ENDED SEPTEMBER 30, 2022 WIPRO LIMITED AND SUBSIDIARIES INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (₹ in millions, except share and per share data, unless otherwise stated) | | Notes | As at March 31, 2022 | As at September 30, 2022 | | | --- | --- | --- | --- | --- | | ASSETS | | | | | | Goodwill | 6 | 246,989 | 302,608 | 3,719 | | Intangible assets | 6 | ...
Wipro(WIT) - 2023 Q2 - Earnings Call Transcript
2022-10-12 17:47
Financial Data and Key Metrics Changes - The company recorded a 4.1% growth in constant currency terms sequentially and 13% year-on-year, translating into double-digit growth across all markets [14][35] - Operating margins were reported at 15.1%, slightly higher than the previous quarter [35] - Net income grew 3.7% sequentially for the second quarter [35] - The company had a robust 180% ratio of operating cash flow to net income, with $4.3 billion of gross cash and $2.2 billion of net cash on the balance sheet [36] Business Line Data and Key Metrics Changes - The iDEAS global business line grew 15% year-on-year, driven by cloud transformation (26% growth), applications and data (21% growth), and engineering services (18% growth) [20] - The iCORE global business line grew 9% year-on-year, led by cybersecurity services, which grew 23% year-on-year [21] - Wipro FullStride Cloud Services, which constitutes more than one-third of the business, continues to drive success with a 24% year-on-year growth in bookings with high-growth partners [23] Market Data and Key Metrics Changes - In the Americas One market, growth was 15% year-on-year, with technology products and platforms being the fastest-growing sector at 26% [16] - The Americas Two market grew 12% year-on-year, with manufacturing and energy sectors leading performance [17] - The European business delivered a year-on-year growth of 12%, with a significant 36% growth in order book [18] - The APMEA business grew 11% year-on-year, with strong performance in Southeast Asia, Australia, New Zealand, and the Middle East [19] Company Strategy and Development Direction - The company emphasizes large transformative deals as a key pillar of growth strategy, with 11 deals signed in Q2 totaling $725 million [10] - Sustainability is integrated into the company's operations, with a focus on developing low carbon impact solutions [13] - The company is investing in strategic areas such as artificial intelligence, data, 5G, Metaverse, and Industry 4.0 to gain a competitive edge [27] Management's Comments on Operating Environment and Future Outlook - Management noted a change in macroeconomic conditions, with inflation pressures, geopolitical turmoil, and rising interest rates impacting client optimism [6][32] - Despite the uncertain environment, the company remains confident in gaining market share and achieving double-digit growth for the full year [31][33] - The guidance for Q3 is set at a revenue growth of 0.5% to 2%, translating to 10% to 12% year-on-year growth in constant currency terms [30] Other Important Information - The company has onboarded over 14,000 freshers in the first half of the fiscal year, which is 75% of the total added in the previous year [29] - Attrition has moderated to 23% on a trailing 12-month basis, with expectations for further moderation [28] Q&A Session Summary Question: Client Cautiousness Regarding Macro Environment - Management acknowledged a level of uncertainty among clients due to macroeconomic changes, but noted strong performance in bookings and growth [41][44] Question: Guidance and Demand Environment - Management explained that while the guidance reflects a cautious outlook, the business has been performing well with double-digit growth across all markets [45][46] Question: Consulting Acquisitions and Pipeline - Management indicated that consulting has been a significant growth driver, but acknowledged a slowdown in the consulting business due to market conditions [51] Question: Margin Improvement Strategies - Management discussed strategic investments in talent and operational excellence to improve margins, with a focus on larger deals and efficiency [56][59] Question: Restructuring Costs Impact - Management clarified that restructuring costs were a one-off event aimed at addressing inefficiencies, primarily in Europe [64][66] Question: Demand Environment in U.S. and Europe - Management noted that while both regions are experiencing macro uncertainty, the growth rates are similar, with potential impacts from the energy crisis in Europe [73] Question: Price Increases as a Margin Lever - Management expressed confidence in continuing to achieve price increases, which have been successfully implemented in recent quarters [98]
Wipro(WIT) - 2023 Q2 - Earnings Call Presentation
2022-10-12 13:45
Financial Performance for the Quarter ended September 30, 2022 Jatin Dalal Chief Financial Officer Wipro Limited Revenue for the Quarter $ 2.80 Bn IT Services Revenue | USD ₹ 225.4 Bn Gross Revenue | INR IT services Growth on Constant Currency Basis: QoQ: 4.1% YoY: 12.9% $ Mn INR Mn ...... © 2 | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------|-----------------------------------|--------|-------|-------| | | | | | | | | | | | | | Operating M ...
Wipro(WIT) - 2023 Q1 - Earnings Call Presentation
2022-07-21 09:22
Financial Performance for the Quarter ended June 30, 2022 Jatin Dalal Chief Financial Officer Wipro Limited Revenue for the Quarter $ 2.74 Bn IT Services Revenue | USD ₹ 215.3 Bn Gross Revenue | INR $2,735.5 $2,721.7 $2,414.5 $ Mn Q1'22 Q4'22 Q1'23 215,286 208,600 182,524 INR Mr Q1'23 Q1'22 Q4'22 ...... @ wipro Operating Margin for the Quarter ©3 IT Services Operating Margin refers to our segment results 15.0 % IT Services Operating Margin ₹31.9 Bn Operating Profit (Wipro Ltd.) in INR INR Mn ...... Net Inco ...
Wipro(WIT) - 2023 Q1 - Earnings Call Transcript
2022-07-20 17:46
Wipro Limited (NYSE:WIT) Q1 2023 Earnings Conference Call July 20, 2022 10:00 AM ET Company Participants Aparna Iyer – Vice President and Corporate Treasurer Thierry Delaporte – Chief Executive Officer and Managing Director Jatin Dalal – Chief Financial Officer Stephanie Trautman – Chief Growth Officer Conference Call Participants Moshe Katri – Wedbush Securities Mukul Garg – Motilal Oswal Financial Services Kumar Rakesh – BNP Paribas Sandeep Shah – Equirus Securities Nitin Padmanabhan – Investec Gaurav Rat ...
Wipro(WIT) - 2023 Q1 - Quarterly Report
2022-06-28 20:03
Exhibit 99.1 June 24, 2022 The Manager – Listing BSE Limited (BSE: 507685) The Manager – Listing National Stock Exchange of lndia Limited (NSE:WIPRO) The Market Operations NYSE, New York (NYSE: WIT) Dear Sir/Madam, Sub: Notice of Annual General Meeting ("AGM"), Integrated Annual Report for Financial Year 2021-22 and intimation of book closure for the AGM This is to inform that the 76th AGM of the Company is scheduled to be held on Tuesday, July 19, 2022 at 9 AM IST through video conferencing. Pursuant to Se ...
Wipro(WIT) - 2022 Q4 - Annual Report
2022-06-09 10:09
Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ Registration statement pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934 OR ☒ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended March 31, 2022 OR ☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to OR ☐ Shell Company Report p ...
Wipro(WIT) - 2022 Q4 - Earnings Call Transcript
2022-04-29 20:52
Wipro Limited (NYSE:WIT) Q4 2022 Earnings Conference Call April 29, 2022 10:00 AM ET Company Participants Aparna Iyer - Vice President and Corporate Treasurer Thierry Delaporte - Chief Executive Officer Rajan Kohli - Managing Partner, iDEAS Business Line Jatin Dalal - Chief Financial Officer Stephanie Trautman - Chief Growth Officer Conference Call Participants Kumar Rakesh - BNP Paribas Ravi Menon - Macquarie Group Gaurav Rateria - Morgan Stanley Pankaj Kapoor - CLSA Ltd. Dipesh Mehta - Emkay Global Financ ...