WIT - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, good day, and welcome to the Wipro Limited Q3 FY '21 Quarterly Investor Conference Call. [Operator Instructions]. Please note that this conference is being recorded. I now hand the conference over to Ms. Aparna Iyer, Vice President and Corporate Treasurer. to over and you, you. Thank

Aparna Iyer

A Thank Quarter welcome our warm FY you, 'XX Stanford. X Earnings to very Call.

Executive Director; We management will our open by Chief the overview business CFO, highlights and begin the the Q&A call Thierry with Jatin Dalal. bridge Delaporte, operator overview for by team. financial followed the Afterwards, and Officer from Managing will our our with

materially within me that make uncertainties are circumstances let expectations starts, explained filings XXXX. draw are meaning of statements during you, certain cause uncertainties with These from the expected. our call, be Thierry to update in not Act any made fact are risks, factors website. your and risk and Private available SEC. Before on filing. the based with conference and forward-looking will the which the may to obligation and this events we forward-looking after Reform will differ detailed current Securities may the reflect undertake Thierry. be transcript the of results to does attention actual associated Over and on archived, Litigation management's statements Wipro call a date These The to our statements those to

Thierry Delaporte

you XXXX, thank an with with that with with and gone ago, moment filled now XX happy for clients for company. just today. wishing so happy society, a effective evening, for prospects, and Last structure, new that very some January for Aparna, you. we unprecedented pleasure our important live ladies new for days vaccine our hopeful you year very X, times, share speak also good I'm be the organization year, sincerely, our had it will to us. really with you we and we year. true much better literally businesses, optimism a And and gentlemen, to It's very improved a are are witnessed

second of an of healthy share in you I performance we've quarter consecutive performance. am operating and margins, flows. update on our a expansion give turnover revenues, pleased order lower me employee cash sustained to with that strong booking, you had with Let now solid in QX acceleration growth actually

by it X.X% in currency upper one. end X.X% reported is one our revenue terms, at at terms, on The growth, of constant guidance. Looking the

broad in metrics utilization, mix, Our driving all-time the quarter Expansion highest revenues. margins, highest at last again, the This, operations, attrition market subcontracting. we operating growth led quarters. of Several was surge the sectors focusing XX optimized and led a quarters. are growth based achieved the was XX by basis during ROM and was revenues best, by The XX.X%. expanded to including our in by across volumes. improving in have is the in points excellence operating XXX in quality and on On we offshore

We TCV closed quarter Third, our small over $X.X both digit was double order offerings year-on-year billion. XX and was with service of XX a of overall order booking always a deals TCV and deals, strong, for important large for these across is on grew and The the booked us. mix which the and than had sectors good book million more deals basis.

with METRO-nom. We Continental as closed deal you in largest know, also, ever our Europe

and to in paying All team have we Wipro execution of years. recent this the a capabilities seen was organization It's with achieved Those the relentless in the that has One off. states while committed biggest testimony efforts transformation implementing the place. real are that

the booking was booking the In underlying digit There and some on provide growth geographies. double order the across geographies. saw very color in funnel We is significant key the me U.S., Now year-on-year. business across all let order grew market traction performance. our good major healthy,

resulted and in terms. cost. transformation driving faster and cloud, core, We to Europe has some converted particularly efficiencies driven of They're on X.X% leading consistently constant year-on-year mostly basis. a We in have Europe acceleration large of being demand at in by currency digital adoption optimize Europe, the growing which see the the strong, in in deals in

Now from report X firing, view, and had a deal of to to grew of sector X% that I'm Consumer sectors we on the out sector back continues X solid pleased cylinders all over blaze sequentially. wins. demand trail services demand in and The momentum financial by sub-verticals, digital by infrastructure led is all services driven led primarily utilities. by in in was energy across utility also much pretty digital cloud operations, Growth transformation.

to gas Technology ramp bounced wins healthy and customers we in growth quarter furloughs. health and in back continue as up by health a manufacturings build Communications encouraged care the seasonal demand beginning headed the finally, However, the And uptick was and and life with truly our on plan business. sciences momentum. this to a well oil performance services by deal are see in have. we a despite

months. environment, in X activity the pipeline intensity demand the the last to steady and improvement shown has Now sales it robust. the The rise of continues looking is at

digital service operations We for offerings are demand heightened and transformation, in in digital seeing particular. cloud in in our infrastructure services

a me our of services some of you let infrastructure cloud few wins space. operations and examples Now in give digital

rapidly the U.S.-based mortgage lenders' to its to Wipro power base. First service mortgage retail Wipro growth U.S. won multiyear, to the India. best-in-class application operation strategy. and client customer engagement example, the provide a aggressive lender, in multimillion-dollar growing development services mortgage and in leverage Business a centers will from customer

IT Wipro U.S.-based Second services company services for awarded multinational for infrastructure strategic, contract multiyear, manufacturing example, a desks cloud and managed has global management. food a service and

coordination end-to-end will ServiceNow's support, cloud ScienceLogic. optimization, file Wipro engagement, cross-functional workplace this services, and services, infrastructure AWS, and of tools, also multilingual including provide part As

infrastructure consolidate globally. all In we projects addition, probably

significant business ATCO. and and across digital from tech embracing their traditional are traction IT are they are moving areas: broad transformation in business shifting And models to witnessing transformation, clients state. Now IT we one, operating X discussion adopting of the away the our models

and digital omni-channel to native on third, Customer exploit are goals. the and lift experience. workloads, the business the directly solutions. them including front-to-back on and experience significantly not transformation core just becoming investing And moving are business link are beyond automation clients to helping to clients cloud, we our of the this programs Second, transformation capabilities, shift are initiatives,

of are leading partnership wins with know alliance clients create transform their are helping solutions. we our where strategic and to business solutions to You joint that IT create

program the an and network the with carry development Wipro's with hotel, provider you in restaurant -- services, give and $X it place provide METRO me a positions AG, transformation food million over METRO a will digital deliver application solutions, examples. will the company, leading to extend intention cloud, additional encompass and food a world industry. infrastructure. gives for flexible METRO, XXX-degree innovation and itself the and the capturing With and AG way, and of with wholesale to Let billion, years few access the we've and a a along We wholesale spend practices. to services, operations a up their $XXX digital global METRO to X-year cash for signed X hope by IT with best Wipro as and data digital integrated, as program at trading, AG. robust we technology, IT engineering transformation landscape allows partnership simplify critically potential Partnering streamline and strategic complete a to center

U.K. with have more be and to delivered transform reimagine in we the customer chosen transformation architecture. to relationship example, their Next partner as been cloud-first bank journey a digital for the bank

studio Final to deliver patterns, cloud industry Our rapidly. health leverage continues build to horizontal enabling for a business in leading and us outcomes provider. example, care

to meet X months leveraged to complex data deliver AWS the containerized solution requirements. in regulatory application have We year-end

to right as Day X.X% feel last Now and moving this that you model. said revenue that days is the on in Analyst and our our and The current XX momentum. busy is which commentary, medium accelerating and The term. outlook but we environment. are us the on sustainable place now see we imagine, been 'XX. we in We've the QX our for very growth is news the have demand X.X%, that will focus direction. for deliver improved team guided for we organization, as reflects consider an our new have only In operating a margins growth good in We can in

QX. priority. have As expansion you've in our observed, remains we delivered top Growth margin significant

make to specialists. domain sales and our begun in have We frontline investments

our the also out For X. will X. QX We've announced also effective XXX% And make rolling quarters we for increases which and cycle we of be will December promotion a effective payout consecutive it January of XX% variable payout. employees, them completed salary full QX, X for for

elevated. these but acceleration investments, will margins remain I'm still the you. on over it say, us. summarize, for business quarter will your by seen for to in Jatin, that, the Jatin, very Our the and comments the I for have To momentum we excited ahead in must headwinds the 'XX. have of performance hand optimistic of his over With about to you, for QX -- year I financial QX

Jatin Dalal

Good morning, good Thierry. ladies much, gentlemen. very evening, you and Thank

As all an always, great quarter of to talk you. We to of execution. excellent had

year, XX%. quarter resulted our just growth Margin growth growth approximately end. of of prior from significantly a revenue expansion the XX.X%. basis robust year-on-year at of was X.X% at that We Our upper income operating this the at our was net our Resultant at our XX.X%, upper compared improved end of profit had too in quarters. -- X.X% to QX ETR last versus XXX guidance point higher

cash the about talk now me Let conversion.

income quarter by was We our had approximately net of flow we course improved net more on Our the the days. where at Overall, very two flow DSO end at $X.X of XXX% cash after cash $X.X debt was of our our X, At conversion X quarter billion. debt, quarters we and and of sheet, XXX% balance of free quarter robust the our days delivered cash the of first the of operating we of during one continued performance, cash cash EBITDA. billion robust.

forex. me talk the Let about

at margin end Our realized of We hedges We of account the uptick had XX.XX%. rate was quarter X. positive $X.X billion on X.X% for of the delivered forex. quarter

in share As by The of INR interim were end per has middle also you month. meeting. the financial to very my dividend aware, Directors are your get we X of take from happy we to and an board expect highlights, approved program, These be today's a hereon. in we'll of and completed questions overall of process of are this buyback the Board the buyback

Operator

[Operator Instructions].

question the first Securities. of line The Wedbush Moshe from from Katri is

Moshe Katri

this just some I feel to happy your growth Congratulations peers? everyone. wanted strong And how are point, view, The your peers of to to point? larger your better-than-expected the peers? that year, to half in been at new be has the and had for a show need on you comparables probably this in with for Are for to what on Wipro growing quarter. get And obviously, you their sector. of strong some to quarter quarter at results still many long rates of compared take kind you've other get rate will, do there able a do at

Thierry Delaporte

thanks question. for your Moshe,

we I growth. take it it's journey. We the very is the our going in that hadn't before you strategy to are in back -- go a we think of But terms cannot several said this competitors would really is many? first accelerate, walk growth understand if pattern to quarters to -- then level have the and to stabilized run. a defined growth get take And we what to some to question, you now. is going that of business is the I that we accelerate situation it's then to what leading go board get time. takes seeing know We a clear tell to then clear we've after. and It's How the where same QX there. from we

key the are support continue higher in map. journey step seeing so going by of see into executing to are to investing as by we in believe is on, that trajectory. than growth drive we step to focus are that the with we our after these some We we and are What will our on investing focused investments along growth, talent with success, lines. the well the increased and others, areas markets And road that our

you years making X ahead we So not you, of promise us, time. bear or be with will X telling

you consistency the trajectory see We to and quarter. after consistently, the are quarter will execute going of

optimism clear For the is of level now, demand is market that good. easier. is The good. it's And our

Moshe Katri

Okay.

that Just model margin of sustainable -- to of you lot into real follow-up into looking what And some fiscal obviously, gains fiscal I given working are work-from-home in sustainable 'XX? as what's new next guys And question are pandemic-driven had or flexibility. you the year, here the that confirm just a the is, not? 'XX what's comfortable you heard, a has

Thierry Delaporte

take to this you want Jatin, one? Moshe. Thanks, Absolutely.

Jatin Dalal

three revenue has on in earlier Sure, leverage spoke helped as the margin day. Thierry. One share momentum the it that know, improvement. has levers fixed is The growth creates effective you expenses, about revenue for Moshe, operating Wipro; we certainly. the

over Second offshoring is of a quarters. course significant last four the

has been for able utilization mix, offshore X in the of can leave, as approximately our last in tight the third see course you And over quarter we have quarters. we percentage improved quite especially four Our well. to adjusted data very range, sheet, done a three, manage our have is, in by

see operating within course of offshoring, with But situation fixed momentum, which if Moshe. the first to remains, a the ourselves go given reality the We'll remaining related X So X how those continues next that have component may and the the the to of will stay prepare it saving, have for. to out, and of some away that situation it we level, then revenue is margin. at pans if pandemic, lower during advantages the of expenses months slowly is

Operator

The next Guntupalli line is ICICI the Securities. from from question Sudheer of

As we from the there next is question line Shah no Equirus of the Securities. take from response, Sandeep

Sandeep Shah

on Thanks Yes. sharing points the some for wins. deal data

question this Wipro change And a a terms TCV which wins? pipeline quarter, conversion the of faster in just of question, model, into have of a is, X.X. pipeline deal in XXX a related we deals helps learning the in of a creation first any with or The a in of of terms quick terms operating

$XX exclude I average the close at wins $XXX million, AG, $XX the includes of if million ACV, million. the METRO to So tenure deal

whether as on and deal larger to may down in wins a these practice every the may are it understand just Otherwise, a deal momentum quarter size, quarter? wanted making to Thierry, we become So whole? win sporadic the buy coming win

Thierry Delaporte

is That true. is That true.

it's Sandeep, Okay. reduced of the operating to has We've built operating right. my down One, the model. It have X, many a up something adding P&Ls. following model so the strengths: we level X. linear All question has XX model P&L on from less first. at like number The

So less people less opportunity more means a organization, lot to lot a lot that inside walls a the and silos work together. for

it have units relationship, given put expertise, the and market accounts a is given managing And line, together, organization an focusing place talent, work with who who right, or who owns One hand-in-hand a the -- who the What have solutions, actually we Second, one people define or are of does managing invest logic the market, the strategic you the owns in the in in teams client and is delivery. who those and are controlling less that who geography global where business that working the Wipro. on managing in owns internal.

people need opportunities more on to the exposed more clients, operation working deals, working manage on have less people people You organization. with more and to clients, in involved

So you're nimble.

we've on obviously, this model mean, I efficiency, the moved So January into X.

is to was the So whole the itself, the clear new organization in that's, proof to already and what the well model. going bit the only little January stage is under it's And XX, that be But results. in early is model well a following: designed see implemented. we're one, the but visibly place

level we've had of months. the last the is intensity Second over that X

way working mobilizing the high forces very around the group, and have we there capabilities opportunities, the has we are leveraging On very and the been here intensity. references high, very, on

of has that of a activities, Third tracking deals. and from is, intensity monthly in a activities to shift sales quarterly around undoubtedly and a have of change, a tracking sales moved we discussions driven level

executive give deals deals focused every week, hold on exclusively. examples. you of and on more We to XX% it than Just more a committee is

clients, client. looking I focusing And the with intensity. the So talking than clients, discussions, on know standpoint, our I day our more time is level never a active at has without think it ambitious I have not connecting we to market, that the one internal really if from the we're same same, team doing more And in ever. of are present more and but

stronger. was its focus implement this organization I where think started have we in are to is some of QX, the to is, -- to an in who make to already faster we and every Second own in to are an alignment as some areas I decisions now investments in priorities. unit and our bold us also made respond Instead strategic. deciding clients possibility COVID, order It We've of it's of we've and where proactively that the in to think priorities, exposed helps some context having move moves convinced situations the terms been received well of well.

journey I it's new is high. operating but run and the understanding that feedback of level the survey we this and last support say, beginning operating very and the of based model, on new teams in the this this the say internally, thing and promising. on would is adoption the would I model And the is of So leaders

So the is there. momentum

Sandeep Shah

Okay.

an And to Deal follow-up. question a more year of couple there has the as to your wage also size hikes such similar announcing be peers in with are as round large pipeline. AG, deals are Just of said be of maybe a also, And of would the METRO a hikes margins, the the peers rate in another next impact. could QX one normal Jatin, a regarding next quarters year. just

So Thierry our will elevated. -- to margins remain also said and continue that

to around that? that which So may current with possible we margins the quarter moment, Jatin, the it a you continue make believe -- narrow is generally, band statement

Thierry Delaporte

just deal second take this Jatin, maybe big -- question, you let before give one. I'll part, you I first the the I the respond, and

we have logic want okay, METRO does okay? on going one here okay? moved your the you're we again, deal team, this now we quarter, going from are per big have it -- your was, large having large question the created to a That's systematize. mean this where the to team. win So a place first have we and big deal where METRO, So That is deal you to plan, in of place won didn't

are We structuring have we -- it.

knowledge. putting We are expert's

deals way go you do after large You the after go not smaller deal. a

to type big with of need place the expertise have bring different in obviously a objective true are and and deal that we You talent, putting caliber, to machine.

now, we For in some we have more. getting and are the pipe,

will So this every where place good at quarter. news. not a But Jatin. To are one we yet we is you, the have

Jatin Dalal

Thierry. Thanks, Yes.

have we in investments operating here where a cadre. sales had front-line great is XX.X% a are have definitely margin. what articulated. quarter we Sandeep, with We in this So hiring We consulting quarter capability, X domain definitely a

in investments articulated have headwinds that that host morning, see and the have we said we of last course on is this the will those Thierry quarter on lower months, talent, also those during costs, these quarter given we continue. a higher of We few about which investments. spoke some that which have have benefits Having in spend, side, were Saurabh of which facilities seen travel will means terms that, and that benefits not of four, we lower we have X since margins

also lever few We go hopefully out increased terms four. increased sustain. overnight has also that Offshoring have cannot over an additional last out. revenue It play that will quarters, should in significantly of momentum in quarter

of So our is the in we beginning the some and see continue benefits this headwind articulation hence, will also that we will year, the compared were to where investment. a of of

go from the those but elevated levels However, remain we we of will will to levels. year, were that we at the back beginning the not

Operator

from the line from Agarwal question Edelweiss. next [Operator Sandip Instructions]. is of The

Sandip Agarwal

you hear can Hello, me?

Thierry Delaporte

Yes, Sandip.

Sandip Agarwal

reaching and of end execution Congrats the And all stay Year also and Happy whole team New guidance. healthy, safe. for excellent management top wishing stay the you to

strategy also, these of And the what we one of signs you is question, have are cloud? early towards opportunity I seeing So are How seeing that hyperscalers? whole strong only seeing delta CapEx our long X the a our is is Thierry, Are be period -- by you industry revenue of your for pushed being this trends? after growth? what And to what would strategy your banking these gap? get the

Thierry Delaporte

Okay. All right.

So thank you.

side, of us last had we One, been for made growth cloud big infrastructure that because center It right investment a at is our have strategy, part. years. on a right? over a the is So the position significant the

like like with relationship Microsoft. ServiceNow, strong or Salesforce with We have on. We've Google AWS, company so like and companies been

invested, the accelerate really we have and We to continue want to on cloud.

a definitely, markets. our of So pickup We the in see? heart see what an at strategy, we different significant acceleration, do

banking acceleration in have side, from both While unified is are large to a as some in of on pretty Europe, him, sector from partner and bit built traditionally, in companies think transformation we lot cloud risks and going the we sides, relationship cloud increase clients the with believe pipeline, has public with America the -- of In see started one of gone the for or happening. level therefore, there an our adoption, reduce I cloud with to see the cloud lot actually on critical. the were equal with insurance. on cohesive, America, Europe companies including much business ago. and that service in a a a We therefore, together client, a in been an realized of suspicious pandemic, years this a offer necessity the The volume the together the Asia. are the where industry, several I've to every we these what of journey understanding little CEO and on able technology now I BFSI transformation. and to we in we're is And proposal And accelerate. little has have side, absolutely when and an they together terms of slower careful

don't the a the also out you in October, we if I and point our I market strategy -- say our laid have would around presented know way want you in X So probably relationship to to with partners. that we leverage priority realized actually, presented

inside more appetite will relationship taking partner This this huge And build level on the on tall to level. will of and we work. And very sides. these each Wipro a We but type all them, and senior There's I deals, team first have appetite only to that deals. on the of about managing both them we partnership equal of hear both managing another have together that the several President created Vice obviously, are you so leader with at on a discussions, very corporate them. with with of not sides engaged relationships,

Operator

next is line Guntupalli the ICICI Securities. from question from The Sudheer of

Sudheer Guntupalli

Wipro, quarter. has Congrats better good for Clearly, relatively HX on historically, industry. a versus been

Secondly, the this and X scope subsequent mathematically, residual first given and the March. of over recovery months in calendar drop over the there the run more in recovery rate for some revenue September December, looks

talking In addition, over deal we also the have months. strong been X about momentum previous win

perspective, if quarter you or looks to know would being glad things put have be So thoughts could we these it element? into like here the conservative been there your outlook next if for the other higher. I is are if some tad

Thierry Delaporte

Jatin try don't define really I try where we will we and to the be with I to believe No. together land. team leadership conservative.

there's game don't any So here. read no --

had -- realize this is think context we quarter. in. certainly a just We've the I good are

going as to comfortable Sudheer, those good for swiftly, feel quarter I well. new continue want communication context of our feel This for after We the but And build quarter have a shine is well. and is that we think to I We conditions have to behind that transition four be one is into X.X% model. want which we QX, one. rationale believe more growth with -- a importantly, us, quarter. And quarter We the good don't the to solidly this are ambition. consistent. the We're the as the probably X.X% in the also

this engine. We solidly are building growth

Sudheer Guntupalli

one just for question And Okay. Jatin.

the as like pointed of not when of travel terms will some all might rightly factors resume margins, under out earlier, course, be In you our control. and of

we may will extent? sustain levels? like round this not comfortable there. terms are able hazard, be to probably or guess, some utilizations in But are I can the utilization, over bring Because how a the we we So which the at of be down that hiring, aspects current will to an -- comfortable there of of

Jatin Dalal

Yes.

talent have how on share to to Saurabh think, job a to request X and a over, and good I'll strategy I our utilization he -- last we sees quarters, done do the X So good we job. planning continue scope? X

Saurabh Govil

Thanks, Jatin.

and a We I freshers a based three one continuing. QX hiring, we'll across from net continue is gross think globe. We and momentum onboarded it's on broad supply very people very So hiring. hiring, and which chain, is the X,XXX-plus XX,XXX the see that had robust in adds, QX in aspects: we

So that's one.

up given I this the in the But Second last rising quarters. the trend be is in see the attrition has a coming two could It's for held momentum quarter. been flat. market,

so mind, at piece, if quarter you of increase. net nearly is in QX. our it from It for too, basis, seasonal actually And at if look keeping for And was typically on a X% year-on-year look as of QX, utilization there's you this is as same QX, -- leave same leave. it -- a

I have look X% So another personally believe to to headspace also could of this up we some in area. X%

manage hiccups. the comfortable is that sure this we with no So growth a us. I'm we side, momentum will make for strong operational that lever supply But from a

Operator

Pai of is line Bang. next The from question from the Girish Nirmal

Girish Pai

months the basically talking fall going XX as I'm Service And to just over, I Thierry, of Do I Infrastructure next cloud XX say, months you a That's question subsequent the on wanted a number nature services. the it's have of compressed off? and regarding TCV. see that kind question this understand to after being then demand. about demand one. to

Thierry Delaporte

I was for the several absolutely this because smiling contrary, to listening the question I've is heard I your feel conviction Girish. already. My beginning years at question

of companies on So on. and true I it's opportunity cloud potential that more so the new environment realize think so is solutions, a -- lot cloud environment to a they demand. mind, be in more develop much new platforms to will want The which creating will going my services, new

wave, a are on but very I cloud serve future, And and the for of so wave the small will big think, a at not is wave. XX% foreseeable definitely It's we it. not this we

Girish Pai

this? is completely talking -- couple question other collapsing completely TCV, from Okay. gains I of How but the you X being gains billion were X TCV, this net to XX this a points billion These This Jatin, people think is of structure people you new? had the XX, was, the much like, people. new and extract the -- from And of I can $X.X from net restructuring? management data do $X.X reporting, restructuring points, wanted. you about your

Jatin Dalal

Girish. Yes,

has first it, in the for METRO-nom and new. the is sitting quarter, you But this are are of both And to sharing which you mix. of a component that especially Girish, is deals this as new we our this. easy no, it So of is, not components see renewal part means number because know as that part for new completely as it well is

the you if to in I'm just rest, We not -- point, will this for mix $X.X quarter. mean, apply a as in obvious normal a moving see quite probably I significant color of decipher. billon. you that quarter of new is sharing a but will rest a component there the that this this data even everyone on is So give percentage,

Sorry, your second question was, Girish?

Girish Pai

the The of gains structure. management collapsing from this

How to reporting of senior people compared see XX, much just four top-level to, gains managers people. You XX that? say, you do from

Jatin Dalal

Sure.

superior this his around creating greater As a for we also have I'll request focus structure not perspective. simpler revenue to and sharper is momentum, accountability. cost. around investment a for add a said, us, It's Saurabh

Saurabh Govil

Yes.

organization the think I about more and reorg making client-centric. is agile the

well is to a as the as So Thierry focus earlier. because lot the in the out coming that's be seeing we'll intent quarter in quarters, leaders reinvest of been our called onboarding and as next

how is that more and see the make cost do agile organization client-centric. more about a don't exercise more, So we as it

Operator

the from Elara of is Shindadkar Capital. question next line Abhishek from The

Abhishek Shindadkar

the per is employee. question My revenue

basis. in flat offshoring, quarter-on-quarter a that number is on the shift a despite Now

the So as gross it may it seems helped margins well. on have

to Thierry. So goes Wipro just non-work-from-home once second size margins lever. of substantial through large a there margin question understand organization these are wanted of the a gross reorg, we shift amount And for how sustainable is back is Whenever to environment?

Now coming how how it reorg? are much of of current to the X-, X-year margins quarter period? much this come kind is next the over from And going of

Thierry Delaporte

frankly, that take I'll Abhishek, one.

one, organization January So this shifted on to we've X. model

much Jatin driving insist this agreed. what again, of would said. Yes, savings. improvement, terms But reflect again, So on efficiency and is in to agility not productivity

is of rationalization the our efficient need somehow to into our So -- means impact a for is freeing rest, more opportunities model, management we lot reducing and But be have and the simplification in a of is it roles many what the which market. will the future. that actually up the for the number better reinvest

differentiated we're So invest and prepare and us that's want always Remember, really more really growth seeing. obsessed are better with about talent. solutions, focused and how top offerings to we and

so way we inconsistencies, ways the we duplication, avoid at more be avoid more is, see looking leadership. of things reduce efficient, And are layers nimble, constantly to

That is layers have all also, our the course, believe reinvesting to And of we reduced accelerate in our that we of of able driving engine the we're going We increased be will that why, span savings our to organization, forward. of number control. growth.

Jatin Dalal

to I'll Yes. as internally. various to And per first Revenue has Abhishek, is your a It employee metric a track great answer metric question. it. dimensions

services third T&M. the than is selling. lower is fixed First second realization mix, element DOP is Obviously, a the IT offshore could Then increases, that price there price type simply versus are is services. of you of much have an

quite made carefully accelerated you in are point. I and it for More we a over operations watch this digital and beyond insightful have every But in has quarter, quarters. can tell platforms track we to and with it happy make the in before, on prominent our externally seen the But internally, that the and times the have progress recent called impacts do comment we you offshoring, as have we movement I as out we that difficult well business. been moved. growth way we have comfort we as So

Operator

of from line from Rishit The the next question Nomura. is

Rishit Parikh

hiring the We from just talked that a When investments on provide right? side you around process second quarter? questions could side. if expect markets two is the about management, expanding my is, completed? you And and get color little to the more of next what sales, in That's wage quantum do one. strategic planned Just you've that premium the some on

Thierry Delaporte

sorry, I'm did understand anything. Rishit, not really I

can you very came to muffled. any was It difficult to chance You phone Can closer -- understand. you the get or...?

Rishit Parikh

of expect the And That's second, have the sense of Let management We've investments on what into some you us when complete? some quantum hiring for of some just investments next about be do talked to those markets if quarter? provide sales, of roles, could strategic planned me and repeat Could question. wage we color around you provide right? hikes one. expanding a the you senior the

Thierry Delaporte

-- I what sorry, first question, what What quantum...? quantum, -- the understood. What

Jatin Dalal

Quantum hikes. of pay

Rishit Parikh

hikes. Quantum of wage

Thierry Delaporte

Okay.

of pay Quantum hikes. Okay.

Okay.

Okay. right. All

okay? Saurabh, the the one, and give one, you I'll take first So I'll second

Saurabh Govil

Sure.

Thierry Delaporte

So an to process. ongoing it's be honest, Rishit, it's

what to more active, going acquisition, than very are talent We probably be the recent active past. on us in you've seen

by talent And the will first And the the bring then roles that here continue onboard throughout in of going the as that's world, a about in year we is organization less so all Certainly, now. stack new times. in have future. main in key near the to have view weeks all top we filled the if roles we I every come this -- key months XXXX. starts roles several are the QX, to we our talking journey, is filled in. It's not key be or which to going that model, I'm to, talent the from quarter obviously, literally will you the my time more will But in it in see the many new we'll end in, said, X -- and is

So we to continue the constantly in will X and talent best arrived consider after the constantly for months. We'll look invest industry. not we've

Saurabh Govil

between wage overseas, January. as XX% hikes, performance. X% wage we India increases of called have we and three and will specific Typically, the X% basis, Xst about wide out, will one X%. wage have workforce to this our on on hike, between X% on and be But things: of a have is getting average it an will an will range hikes, depending be Rishit, effective

this in we average in all which out our in on what and for is years. line hikes, as -- that, done employees. plans industry pay Apart variable also happening what had we've called So done is that's how previous for the QX from an wage the with XXX% versus a

factor. another that's So

Rishit Parikh

quantum the that next what be cycle in the as Sure, did earlier sure. the I will right? Or... year, But hear Is for? just -- the is hike wage aiming usual response. not -- And you're of sort

Saurabh Govil

So we typically next cycle in it's is early -- our will because June.

But that for have and at close for we take the we what's take stock as people, the stock depending next So date, of of the on market the of appropriate stuff. now, an on planned time kind industry in it happening will do year. what of we we'll

Operator

the is line question Emkay of next from Dipesh from The Global. Mehta

Dipesh Mehta

of questions. A couple

about, seeing more are First EBITDA it, expansion just if even margin for significant substantial. we increase in And impairment charges. is --

play around So second India if quarters? of need turnaround. from perspective? think to it some think about from now SRE? performance to get to over can expect operational work more charges is more business. couple the we SRE showing significant more Do And sustainable you question It's is how impairment you these provide performance you next out color you sustainable Or India

Thierry Delaporte

the SRE, the let on on question one you take strategy. the the I'll Jatin So I'll second answer and impairment

SRE So looking at business. the

strategy and operations, X, So the our standpoint, of in the organization. looking have who that, improve think we in reaffirmed inside And lot best of Sanjiv confirmed Operations Head discipline since and India. an to Singh bring or for And I a more job normalize, hand, the from top specific on business speaking, of are we are has deals a is frankly we now practices quality line Wipro the I think the other focus January the being excellent done SRE type about selective for.

done so not it side, for on is It's certainly margin I work on And think I the a margin. will let the the But is one-off. Jatin complement. good.

Jatin Dalal

lower as come this phenomena. unfinished to execution quarter Dipesh, ensuring the surprises are and have so company. anticipated the projects dealt by in That's and by completing Systematically, to risk expenditure the improved no longer right, margin level the well not have is -- that significantly this they also current seen, is we and you with, one Thierry. additional

feel we standpoint and quality the performance from of both ISRE on trajectory the with comfortable revenue overall, very of standpoint. margin So

However, one this If remain scale I further, that of -- obviously happy some greater particular view improves the current is has we on It is quarter our will to will regarding medium-term course, of have basis, you. -- and had don't be on a item, that charges in numbers margins with to sustain. acceleration sector. yes, On think also there of which will anticipate the single-digit been to XX% take are don't in anticipated recur. charges, we'll we quarter share a be, the that early impairment that it and built we impairment we

be would the one-off in So a current it quarter.

Dipesh Mehta

Is it possible to quantify?

Jatin Dalal

And on a financials. in that, is beyond not Yes, reflected have we that shared the Dipesh. color that,

Operator

Nitin line question the take from we Ladies from the and gentlemen, last of Padmanabhan Investec.

Nitin Padmanabhan

you. to little had Happy it's New theoretical. a question, I of all Year a

thresholds are done do risk having country you you if what at or that they you of work the any look think incrementally, here think question. likely to to a such there's would I possibly shift terms in clients this Or being that And So at pandemic, point? is thing? reach And stay? think So on-site was when offshore. some reverse be my more by

Thierry Delaporte

it at has are case crisis learned with months? this only our It's in work time. trying discussion the office. -- I've see project. is with interesting can they've point clients, This look, they the teams what can through not If -- happened to you that I had if wasn't on reflect it's this prospective an I the learned over the that last before, question. X at They've

less handle. they that problem So distance handling problem or a or a picture could suddenly at not they of can a that has become and they realized least different problem, actually

there's -- that a with So manage many from and in realizing clients, reflection distance. they that can build, model complex operations that not definitely are they operating can are teams

So first that's the point.

connected locally. obviously, organization or have The to do that second small point, a so then, very very, smaller if need team is that also there's also you you

can clearly, people But which next really It's will you, lot pure with it now -- of really actually we people having right? people need you be the operate model. from the it's more and close service aspects being away. provide want We modify X frankly, be which but what one But home months, strategic that will wherever what view is up distance. connected was and play. it's And you including is, can global know services with so all could will the clients It's going what right? an means with -- with model we company it seen. offshore to forward. home, the that will is anymore. and imply of of that who or does also, to stronger can operate operate support X So last working being It to happened even shores, percentage, logic to we pushes not we Whether this if are over XXX%, exist have certainly, them there to to my is, a down, team a it One company, before, outstanding different your a partner to proof right? partners, has a the some under less people -- than

Nitin Padmanabhan

Sure. That's helpful.

have maybe follow-on, inflation a do you a wage I locations point As but second there's think metrics? a they be the think a considering at having that inflation wage worry? do pickup as And such industry countries, strong vendors And everyone, some the offshore country-risk you by when would for well? offshore, point expect that's reach thing would do is, mandate case, typically if in other other would And the where point? to

Thierry Delaporte

Okay.

Eastern and clear is different it's quality the the tough in spread in is the platforms day, second as I world. to different who comment and of to be this of country. places world in though let the South -- we choose but the point, would not the talent one one, first it's -- that and Asia. although to could end is well, around and America, in say the evenly at I'll market and can limit have many -- places there's I companies, can the necessarily the decide So choice, Saurabh not I'll scale many leverage the obviously, let Europe, Saurabh It to where on single around know other What clients

in some of scale. to make, expertise point And of a in of also know in concentration of India technology you on the terms quality so while of the why, talent view, but in at limitation continue terms terms in choices will have a position, That's that will depending expertise. time, you be, unique and there my

Saurabh Govil

we out see and period see seeing are market is, And huge typically when will the on But very demand of we're demand part, your quarters the back. X as was a pressure. where in now, huge we don't less second of we coming hiring here

But it wage forward. pressure the in demand are very is assess at right now. but on if we'll comfortable if cycle, any we a would the goes So there high, that not be But moment.

Operator

last and question was conference you. hand comments. for the today. Mr. for I the gentlemen, Ladies that to now closing Thank Aparna Iyer over

Aparna Iyer

case In good team. Thank New Investor all Happy to Thank the reach out Year, joining Wish couldn't Relations call. to night your you we Stanford. and please feel any and good you, the for take you questions, of all free a very day.

Thierry Delaporte

you. Bye. Thank

Jatin Dalal

Thank bye. you, and

Operator

very and Wipro, you conference. of your much. may now gentlemen, for Thank joining behalf that Ladies you on lines. disconnect thank and us, all concludes this We you

Wipro Limited (WIT) 13 Jan 212021 Q3 Earnings call transcript