WIPRO.NS - Earnings call transcript Q2 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, good day and welcome to the Q2 FY '23 Earnings Call of Wipro Limited.

As a reminder, all participant lines will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. and President Vice Iyer, Corporate Treasurer. Aparna and you over to you. Thank

Aparna Iyer

A Thank to very our Inba. QX welcome call. warm you, earnings FY 'XX

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

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

Thierry Delaporte

every clients dealing energy economy backdrop optimism business in is have from the Since Thank some. this July, economic pressure markets geopolitical with macroeconomic our And around quarter. rising almost every in our the the for deceleration. experiencing major us with right. Thank we're day, In time those U.S., a change you, of seen strong guess are QX sectors against afternoon, seeing good evening. as you last Also rates, turmoil we the almost it's inflation Aparna,. that morning joining of good conditions Hello you all we earnings with interest joining you've for everyone. Good world delivered crisis. and for level call. speaking And the maybe across spoke changed a to I

and resonate in is proposition bookings, growth across revenues business margins. to value is operating reflected signings, healthy markets. in deal as our Our as continue robust strategy well clients sound with This

bookings. on start Let's

maximum terms QX. the Our Americas more year-on-year than bookings transformative grew deals and clients. a Two year-on-year. XX% operations. talent that and growth key power services, in strategy. allow of they value Europe, to four our are scale our of Indeed, Large will and one the in large, contract us demonstrate our the total value XX% of for markets, We said we deliver are deals in pillar where past grew true

exceptional So billion be an a of QX year-on-year when I'm really wins XX% large in to follows with signing. QX, deal a half in US$XXX fiscal a into booking first And we total deal deal we million. XX over of growth our in clocked This to that the continued this translate actually bookings share strong $X have signed deals In year. this trajectory value large strong. contract pleased quarter in

of we years, steadily win few quality increased last pipeline. Over have our improved the the our rate,

of growth cost and today, well-balanced As has say would engagements. what our a mix of takeouts pipeline I transformation

and of solution. we drive the sustainable build business. increasingly, to is, cost technology technology, the what I believe We has bad manage better for growth Regardless our our mix quarters know demand portfolio on strong the times we and change like based become external help earlier. than that's services. success underlying a tap I future. for ever are positioned into to problem or power the any good that may Now, in in that of this But or before continued is clients technology coming the conditions about transformation, expect comprehensive whether factor talked of true

Speaking we to stack. into do, across tech everything we of our build sustainability, continue sustainability including

new, to us partnership see impact sector a low and our our will expertise strong domain You leveraging solutions carbon for develop clients.

in of partner and market our demand. we and a be to with of client -- Our enterprise client Overall, us leading choice process and expertise is scaling sustainability they growing deep helping offerings, know to engineering strong stand comprehensive the experience I well-positioned for out set set are face of headwinds. the as

into colleagues yet, all we increases to happy double-digit employees Business salary and in currency share growth, to achieved growth sequentially we markets. our growth translates terms That basis. growth September. quarterly on to margins year-on-year our XX.X%. our I'm X.X% for XX% turning and a operating revenue growth And constant we've effective promotions and July, across that rolled of in Now out into recorded translates

As is improved price realizations. we This value with recognizing deliver. strategic our portfolio newer service quarter are more I'll enhance our of margin increasingly are the markets, and and sectors. some clients on service details course combined we is continue with our And offerings, levers improvement. every to operational reflected This share now higher the excellence, the in for automation, final productivity offerings key

one, year-on-year our growth. sectors Let's in In second quarter XX% some markets. Americas, we showing start grew all the with with

contract quarter, the in XX% year-on-year sector Order value QX. terms is year-on-year. platforms growing and technology booking XX% the in the fastest market During in grew grew was which products total nearly

the on utilities than more grew XX% actually to led of Manufacturing moving performance, we a Financial grew and two, growth year-on-year XX% year-on-year. QX. energy recording XX% each Americas, services year-on-year. and Now

Europe. on Moving to

growth year-on-year of a double-digit QX. the leading delivered pack. recorded U.K., Our and markets European XX% and business strong in Europe with Most Benelux, Ireland Southern growth of year-on-year the

at is contract total Our which order year-on-year, XX% book grew massive. quite in terms value

during at year-on-year quarter did East. Asia, New the in business South East Australia, well APMEA Zealand and Regions QX. Middle particularly XX% where that Our grew

all can us. you a across remain see client for relationships priority So double-digit growth. as markets Strengthening top

our As a result, gaining metal [ph] in accounts. share we're

year-on-year; Our five XX constant our XX% XX% grew both in top currency clients top year-on-year grew clients terms.

to Now service offerings. moving

we know line, iDEAS global You have business two iCORE. and

business two lines. of these each through go me Let

growth by applications grew year-on-year year-on-year XX% which which business data by engineering year-on-year global transformation finally grew XX% and grew year-on-year. and line which was This first, iDEAS, by XX% Our grew in services cloud QX. XX% led

significant QX, offerings, risk helped global cybersecurity services, other internal transformation to X% of increased grew but our their enhanced demand XX% their security improve execute intellectual line, of year-on-year on have and with compliance are program. manage methodologies now talking suite We and for than one reductions a by a in success Now organization partners iCORE, In year-on-year to center while and global property clients our QX. risk automate this accelerates, framework, business compliance business of Services, cost speed cyber one-third technology complex led looking Cloud help communications in today. posture. we Wipro leveraging in the processes, globally operate about and an Then FullStride driven the leading which full to which example, their are continues in a program grew experiencing recent more driver It here, be dynamic at collaboration as the of partnerships and growth. And our and this is of our we environment. at

also efficiencies. industry In we unlock new fact, transformation alongside help high with designed our major in grew year-on-year. are the second clients we partners quarter, partners growth efforts to of but and realize creating leading solutions XX% per the value cloud, know bookings Working [ph]

Organization In insights in power into gleaning data see of realize modernizing of the applications, new we to a amount their business. great interest addition data operations. in modernizing

our clients diversified next are help we time is them a group, enhanced our their in is financial omni-channel program to experiences. on another transformation modernization working that actually reduce U.S on a deliver experiences a The and more business. involves better time our into provider Ultimately, services solutions, example, automation that For new leading we transformation here industrial capabilities, a will based cloud analytics working effort, real data market of are help example, to clients insights relationship client platform. centric. transformation for helping which digital building generation and the goal become get for In deliver

building and strategic continue solution opportunities investments engagement that a client marketing competitive firm's will more definition, we are we single customers. us for know our edge areas the a for and will And We drive for to creating around double clients. multi-cloud in with that long-term meaningful down on services sales transform

CTO we development drive is collaborations direction to unit. products through for new our through business develop and technology our LabXX LabXX of property experience launched new assets, build and enhance new client is objective and example, growth help research LabXX The a technology. will models, LabXX, our a new For brand and user enterprise for recently, partnerships. organization. intellectual clients

edge. and but that are new strategic class our talent now continued a row. quarter also looking into an share than We're on of clients at view the lower quarter making and numbers XX-month landscape. attrition was first our third we a capabilities Industry to factoring share tap -- continuing to and artificial is opportunity areas, attrition it on IoT, our client help down into for has In I In to in to as the our competitive and a QX, expertise talent market. through X.X on expand XX% that. to if moderate trending you're intelligence data, in in the happy win I’m already how annualized trailing basis, gain world even fact, such LabXX XG, also impact Metaverse, to decisions the

-- about every finally, were on in rewards XX,XXX now share in shared we And We HX, over next our are -- expect we increases imagine salary And quarter. also further across like steep a our we QX, given talent. freshers whole as colleagues I last to I our which also of the annual promoted know, boarded quarter. our year. in is what moderation in in share of to differentiation XX% colleagues. will you outlook over to XX,XXX I’m pleased that top the an employees had is QX. QX, And added our quarter, We've a for philosophy, last for in promotions offering the bands

the of X%, to translate X.X% seasonality. terms. We will for This and quarter the which to XX% have and environment XX% of revenue reflects in to guided year-on-year currency guidance constant growth current growth

growth. we full ascertain the year, we For that report will double-digit

of just a have increase impact the Our margin of yet in performance a and some strong in narrow the macroeconomic a In margin backdrop QX. against expect summary, a have will months in we QX salary we mixed hold incremental of delivered environment a two to band. headwinds,

prove and an Our competitiveness that reflect market our order improved bookings large working. is strategy and deals

gaining a it for increasingly based ambitions. the real experiencing remain hand confident on of comments. over are factors, that, clients their will realize Jatin now I coming shift these turn to we the in all market With to in to We us his share boldest quarters. market And as

Jatin Dalal

We net net midpoint billion of X.X% have income. therefore had the was Thierry, about improvement at delivered of XX.X% posted We to good good net good balance and than very higher gross for slightly income quarter our sequentially, grew growth. one at two. cycle cash Thank capital cash slightly of had in than the We XX.X%. had morning, XX.X%, robust cash cash $X.X had you, we At which our was We afternoon, and a performance flow a which everyone. was ratio had sequentially end in one. good ForEx. of sheet. operating of performance working quarter XXX% which evening, two, We margin We and quarter. X% overall management. guidance a in robust on collection, billion We Y-o-Y quarter a solid our delivered quarter also better for what $X.X again operating of And result, ETR an had we as X.X%

realization Our the was quarter. we the and hedges $X.X of at end billion ForEx had of XX.XX rate

guidance, and in release, press is Thierry remarked, mentioned for X.X% it three quarter is currency Our constant we’ve the X%. our as to in

take to questions here. your happy very be will from We

Operator

take first We'll line Sandeep Instructions] go ahead. Agarwal Edelweiss. from from [Operator the question of Please the

Sandeep Agarwal

evening Yes. festive thanks the question happy and whole wish opportunity the ask management to Hi, good and the the for season.

small realistic go to it the out? want is have hearing want of cautiousness right it pressure, environment, restrains discussions step are to regarding macro? the in for which that, just right understand geography is more while is from cautiousness, to I cut, of from one. clients also little preventive or be your whether the any it how they kind vertical macros? competitor. likely that the you looks a environment don't seeing of are Or you now, all and we question it watch Thierry, a it leading careful kind because the a kind given client are So any you what some would any want it what and are Thierry. you a the now, where is a aggressive lower get guidance, now, they bit this industry, demand to know or of to of in is I kind and with of of hearing So that probably the volatile. but very or more conservatism wait while they some have we of that environment watch them step preventive the is And hearing the kept still in the you Number what think right guiding, from two, Number from plays

us bit Can on elaborate is the hurting little others? what than more you. So that? you Thank a

Thierry Delaporte

Yes, Sandeep, thank you those questions. for

let about take the the one them is So me one. talking One market by environment. --

whole sorry, with happening the Macro of the a what's yes, Ukraine, share that to was in and climate question. The connected are America I of has we people conditions certain happening the all every your is day into that to The in we energy, the market evolution the it's that, conditions whether answer oil, market world. think is the have interesting people see most happening market news. with that embedded happening certainly the quite I I changed. what's or changed. it's confirmation almost think there has the -- countries, environment, with single reality see what's in in think hear what’s market is And that

in We I But level months today. hear X in for saying. implications point a same the that That's naive certain have to -- speaking, we time, not that why not are they assuming they're frankly of this talking and see months sure. impact a it's that longer And clients, think would all what context is at of our will a I And in question uncertainty bit ago I going is, side because uncertainty be were XX the or to no some industry? ago. There's am big this are our condition That's reality. to on some market them.

the It's and We've moving probably our good. the on to guidance. over bookings. So well we've too. question growing quarters. I'm last that's is The to been probably performing leading business is, mean, what I well what's been

certain market know. I there's that impacting there any furloughs. no So are is QX of our is slowdown, we previous a Do are side know. I obviously, where that uncertainty But except we then a environment also changed, that furloughs. they clients. there more our particular quarter has the except on sign of the And don't have -- be years? there's furloughs know don't that than will

caution. you I cautiously be right. a And I it's the but growth the terms give trajectory, the also so trajectory, tried realized to -- in we've that I might to see a may of cautious think of perspective want And point case, be optimistic.

have than performance. do If growth, of Not of you look markets a X.X% at which strong year-on-year. very we is grew sign All our less one grown QX, double-digit XX%.

So this we see trend.

in year, step This XX% will a even right. double-digit halfway Wipro's that industry This are be have through grown if growth, company the And know -- double-digit mindset X back bookings, at where the have in great gain now. gives in confidence have reality. us the right that impact we the That's again, will years. continue quarters. grow the in the share that to then That's well, performance next the market certainly take growth, and year leading you we last we growth. only will year, to we trend, more and market Now, look and

Sandeep Agarwal

you current Okay. quarter. you. Thank best helpful. And the of very Thank you. wish That's luck for

Thierry Delaporte

Thank Thank Sandeep. you. you,

Operator

you. Thank

the from Our next Please ahead. Nomura. question of Abhishek is from line go Bhandari

Abhishek Bhandari

medium near-term One is have I Thank opportunity. from Thierry, is you a and one two more more for term. the questions.

volatile press and one conference minutes, the XX to playing in multiple last which macro, times especially backdrop Rizing. been some first recent consulting your of have and you even how recent Capco The in your alluding the of are in is out, acquisitions

And If perspective, also you through change a see do kind could particular share some there? two of any trends subsidiaries? over pipeline coming these from you

Thierry Delaporte

two Abhishek, for those Okay. questions. thanks

a more massive single -- quarter. every years. business has the the grown about Consulting consulting. We've in had us we of about than talking for one what Capco, I X was growth plan last first the been So over driver we've

doubt and for forecasted slowdown, and a no there's was we see this it. business. a Now slowdown we It actually us, for see there's consulting okay,

reality We early our cycle. because in to that a consulting be know it's industry, also tends

down, one to adjust evolution. first market to to and the accelerate extremely slow So one to first agile

your for question. that's first So

In terms of, pipeline, as our stronger you said, ever. at than looking the pipeline is

a have third of the will for as definitive see evolution growth. One, We and large there I yes, very growing are a growth. at be to the look it. a well. there a we solid, very the might of pipeline, grow double-digit. We solid driver us, of will Security also to significant our type Cloud is nature think, our supporting of If certain massively continue it's grow pipeline, business. Engineering continue of well deals.

it's expect will case. do I think And those we look where of at -- being to the productivity think of period of terms is a of cost pipeline. in offerings, optimization, is focus therefore, an a over on But because of on a my the I and I In possibly I'm trend of type need see think we That's possibly our should to that but type will cautious technology cloud, certainly clients [ph] so deals are observed evolution business it here, will stronger in the time. gains a have longer assessment -- I even and be the investments require the that lot if on.

Abhishek Bhandari

set of quite gap continuing. peer a between look impact term I basis if More second that at a in context, the XXX and my margins margin, the acquisition, is the our widened has side. there current bit. gap our the medium is while understand question on Thierry, But Thierry. from we Thanks, more around point margin which which perspective, is

So of back XX%. term of of elaborate maybe maybe of XX% to medium take margin if steps X you margin, months around you you could older of to what your you the achieve thought to could your help ago? the think And think levels have you some faster levels go than current it old do softening the supply side you issues would could

Thierry Delaporte

investments. future. Certainly, strategic in in of the these made are all into us where made, some they've right of -- been also by a into you we've significant to investments significant they our yes, said with Abhishek, choice objective. we've in term so but a significant Clearly, one acquisitions that it. it's mid-term investment was we've the make short-term, all strategic and investment you're move into to at to some acquisitions -- make business efficiency, operational margin, look only Then not a into market impact. with made talent, our are this And investment the there driven operating model our all significant our strategic excellence, stronger

we been well significant in So a have as on investment freshers.

didn't few in Wipro some par, I a of think that ago fresher time the with our two was at quarters you this quarter colleagues if strategy a spend ago, explaining market. until more we at like, or have a but we

And that And over so you time. as we've decided really requires an from to delivers investment strategy. go are ambitious freshers because, precious this investment build and it know,

bit margin. would those knock that, so conscious choices And made that we've the a down knowing little

that cost in knew, also being where higher, I with is conscious. in environment a growing, demand over have But Abhishek, a said, this X of people impact. we quarters also XX% We would are that market high as

what did is quarter A say? our we ago, XX% we floor. Now said

here, are going and progress. are from building to We we

clear where not road quarter. know, not the end are as -- do we the not. guide, the you absolutely it's we we will current We see that But are beyond of

investments, progress we've say, are fresher to significant progress. to delivering the ahead the and not after some There's efficiency. to on going finally, more continue levers? our of made only to drive what larger deals automation We've for more on do value strategy, where work significant also still continue I would deals, so go Continue for to volume. And continue And go our made some us. continue to

gap ability continue with our worried not and some our improve to all about margins to of at I'm close So colleagues. the

Abhishek Bhandari

and you talk you to Thierry great wish a and you. you, XXXX Thank end soon. Thank to

Thierry Delaporte

Abhishek. you, you Thank Talk to soon.

Operator

Thank you.

go from Our is next the Please Investec. line from Nitin of Padmanabhan ahead. question

Nitin Padmanabhan

evening. Yes. had I good Hi, questions. two

going first that just throw The could is if there? color think give your manufacturing. could you thoughts the and to, quarter, wanted some perspective around cost is capital I What roughly forward from a of light some see restructuring impacted specifically tech vertical nearly on markets, the markets, in terms I instance, For second, and side pertain The you of is, that INRXXX retail a high capital if things think how you demand it's basis? this on crores.

those on So some as well. color

Thierry Delaporte

Yes. Absolutely.

ask So the and one, first it. build I'll I'll take Jatin on to

is So So is to a repeatedly. this -- was be on needed. it something It's that this restructuring, not okay? so is -- done it's one-off,

[indiscernible] on hadn't a think And Europe. for focused we to I long you and to exclusively that time, a more? address for were say absolutely carrying long done been time. it's want do inefficiency some Jatin, was really that

Jatin Dalal

just reconciling but a it's the could be that. took it's beyond quarter corporate there we level. as spend it was a company three, No, action And nothing it's small in Thierry item sitting -- probably tail is it mentioned, that because There a one-off. at in which

Thierry Delaporte

Yes.

sectors, right, for industries. about the was outlook Nitin, question, second industries an and your Now

of different are of obviously and certainly industry-by-industry We observing everyone market, kind the the evolution has challenges.

another also around it's will is industry adjust I believe also changes, -- to pretty to imagine should sector actually -- that are could market a topics have alignment, driving and well lot rapidly banks going the be to but an for it's is holding used done simplification, banking and -- important they You it's sector streamlining of a one, efforts where forward. be compliance

been sector slowing set and a year certainly is the is tremendously of over that down a last Now growing has technologies.

going more at they're headcount. been slowdown they the look reducing in down has If this to forward. are doing. expect and tech even look large slowing Hiring what at this I there's perceivably industry you And sometimes think

potential like a a could if economy So see, will see is potentially right? worsens, we Another slowdown retail, sector Nitin. one where I the

Nitin Padmanabhan

Sure.

both the it in we on restructuring, should costs, follow-up restructuring a a after tailwind profile on Just the a And think do European you perspective the be that from margin Europe? should the margins improves anticipate restructuring? that

Jatin Dalal

Yes.

is to to we don't think you a Nitin, this in it technology cost future. forward done spend of this need would as many reflect this it we of you right So right number equate with in from some be of I pay. the years have what standpoint Europe, know, that because, But reduction as restructuring going

request would would not to in spend, have where I there you So equate this we with the a the but spend. be reduced tailwind employee reduction certainly

Nitin Padmanabhan

much at Thank will leave it Sure. you so and I there.

Operator

Thank you.

We our from Please next will ahead. Macquarie. Ravi go from take question line of the Menon

Ravi Menon

this Hi. demand could growth called Thank quarter. uncertainty, equally Europe? on color geographies and the revenue Congrats thinking U.S. give environment us the does you or about in both about some you. So out how Thierry, the you're ...? macro you excellent apply that in

Thierry Delaporte

is slowdown -- I to the we in that is to should a but it's interesting little bounce more takes What an observed a as what mean Ravi. a little Europe, say, I when that's quicker well, later, be but it it's America, past [indiscernible], there In tends right? coming Yes, it typically, back. question, time in steeper

think see what's are they I ballpark, the we So own will our know similar. Today, but don't -- look I and is -- we Europe growth see. in are clear if performance they're Americas the comparison the we business, the at help, in if

is slowdown, that there's America. than I'm guessing there if it come is from So could a another. faster But growing market potentially no

okay? clients. but industry here. Now impact is some which have on in also, something like could necessarily there us QX Europe for in So is that QX, manufacturing, a to we'll crisis, impact an that directly, see. It guessing is and doesn't specific here not energy certainly of more there's our uncertainty example, of if this I'm Europe, bit impact

Ravi Menon

And to about almost the accelerate continue spoke there digital journey. is how of a the Thierry. Thanks, on needing you transformation and sense

in compared So makes what we've either XXXX? bit to like spending in resilient or the more that, do the a you that seen technology GSE downturn past, little this in think

Thierry Delaporte

from no not technology the that, convinced -- reduce, is as a seen Absolutely company as a but CEO, what that more I part world. hearing to technology the And economic organizations. is technology you to are resilient cycles. in when Was Ravi, am he lot clients, not his systematically right, indeed, Ravi, last a mean I services it's technology, case the priorities. that is because in are of the systematically. talking you're connecting seen I'm transform mean the fact, with doubt cost about

So of security, see doubt And security, down. it like is on topic I market the definitely there's no working that when are this topics take don't you slowing different.

If you we look definitely either. not slowing cloud, down at what are in doing

know technology sure, why it's back technology. have to in investing for and can to think will them it business know are Now right? I cases, at the they -- very But they're what they clients be of natural and bring are -- they

to your on questions years. front and So absolute

Ravi Menon

and luck. so much Great. Thanks of best

Thierry Delaporte

welcome. You’re

Operator

you. Thank

is Services. of Motilal next from Oswal Financial line the Our Please go question Garg ahead. from Mukul

Mukul Garg

sounded the near-term? the follow-up the slowdown consulting of volatile consulting has of Because near-term I in on the business. you environment. operating Thierry, wanted do of you. bit in given just How profitability about impacts profitability business think be a to that to Thank leverage meaningfully. you this kind and the expect demand business slow the kind usually the very It high

and have profitability question aspect should interval? think this. a I'll consulting about the how we after follow-up So

Thierry Delaporte

Okay.

true. what's the interesting growing is about to is slowing it's to we ago, were down in drive consulting that But talking where One business. growth quarters yes, first, point from some continues note, So consulting interesting consulting our business.

the in won, wouldn't have Capco's We slowing down, win higher those deals value. has drive deals the If winning are large impact growth more for the example, at was. been is banking to than you sector, it more more win of sector we synergy service strategic. us deals We deal. look financial while They our that BFS, Capco more in and

-- And it's Actually, rapidly. are right. adjust they you're that's impact a improving. exactly what us. so part to point. you are profitability as for standpoint, the demand slowing react their of making from margins that are a DNA they good are we seeing. From to and They have agile, are continue standpoint, drive down And Yes, to they absolutely positive why

Mukul Garg

Okay.

consulting expect you other margins as improve the So not to way growth around? moderate, the

Thierry Delaporte

what that's seeing for QX. Yes, I'm

Mukul Garg

Understood.

The profitability on the question second also side. was

look at on the utilization, few and at over thoughts [indiscernible] how next in If net profitability can look decrease the some trade-off we this you versus quarter share you just quarters. growth should adds

prioritize point over other? While seek them, and scope some of you will I to both in understand where there you is one have you improvements need you think

Thierry Delaporte

okay. -- Well

it's -- a an the bit of between But situation there's margin client to volume. where the be If may organization, a do to Mukul, I you on margin I have So trade-off side. let's think a at and different situations as clear sometimes from another, look

with QX, We have where -- we our grow business. and that freshers. go the from certainly freshers no we remember, could to invest expected, doubt, referring is you a quarter evolution or and in in to more balancing made amount growth well conscious said and When you objective clear needed drive than down that that bench conscious demand on, decision to we you what had the we are, a end because material -- headcount excluding if significant amount and headcount the a so we we were profitability. are in quite my a I'm -- of were is seeing for position okay? we little to are, we But made make on to the okay? knowing profitable margins, So will continued growth, Our bigger hiring decision So ready in also a okay? and is statement continue our that's not to up get

all put strategy. just we've so And this

changed. haven't We

in those XX hired months. freshers investments of the XX% HX over as model while we to freshers total hired our the respond and continue actually, have last We of -- to as because demand. we we many it year, to knew number able improve And to deliver are being operating needed

increase quarter and having by of volume revenue what headcount. had utilization, we've utilization obviously This of to you to quarter, our our the significant is of capacity significant the without look continued the if still actually the a increase said of ago. at of It's part optimize But we deliver a mirror managed a freshers. the impacted

Mukul Garg

Sure.

Jatin Dalal

in talent number to I'll not he branch to Thierry fresher numerical it hired in -- because we made, effectively we more earlier, said utilized the Mukul, branch. your got experience by lateral reflect which the got And, -- the has to data may seeing this higher that point add you has a continue or replaced just utilize that utilization while are it sheet has [ph] that where

numerical number. an reflecting of got in have utilization, in we but not two it economically, So the upside quarter is yet out

Mukul Garg

ask Understood. question may on Jatin, I capital allocation. if one

view an given of in point of have from is in focus from to need moving more growth the to organic back do [indiscernible]? point return about the take a think mentioned to are, kind of acquisitions, acquisition this environment we You move time cash press of step and we past accelerate kind shareholders an towards which you view or on to

Jatin Dalal

strategy. our the remains always have part that of we core Mukul, mentioned So acquisition

change no is position. there in So that

consistently a willingness on market the consistent with you the to in well would our too. from the of very correction the cash and that what so announced if add especially to you we will and of also as had like much we XX% of asset, many FY that shareholders that we sell, a our the back We aware. factor as 'XX, anything? things, on that apart QX return overall, one generate, We income of as we factor to are and maintain. position decisions remains But Thierry, net are on distribution we acquisition shareholders, of to attractiveness mentioned before, will said have special price generate, forth. it's also dividends so Acquisition back that cash in we also

Thierry Delaporte

you us. it. strategic is, like Is given is we've number is always have really from a we So standpoint? x No, it in year. reasons, I we a do that make is does for What is remind I a sense? think would Mukul, said that what of sound not What them for decision that acquisitions, change do so strategic we need do it number acquisitions a to a what And approach said doesn't driving -- okay? decision

position driving is strategic, a the be day-to-day, place our in really used focus we what's out focus. Now reinforce us acquisition, Organic never to organic to the get acquisition where is will sorry, to offset have already impact strength, we acquire with have of clients. bigger accelerate actually a can new new we new a a or set believe strong or but and a relation capability position of technology or

So clearly, do It's tactical. strategic fill. the never drive not have number to decision. Mukul, And second point, we a is

when do for it's So when it an no We thing it have acquisition. such there's right us. means, to do we as

Mukul Garg

lot a for my answering questions. Thanks Understood.

Thierry Delaporte

welcome. You’re

Operator

you. Thank

line Taneja Our Financial. JM the Please Manik is next go ahead. of question from from

Manik Taneja

Indian to Thierry. for for chain, our while I heritage supply as but seen least, and levels well. services the talent the It's the Thanks your brains that the for to players, have IT mentioned not -- about wanted aspect that pre-COVID investing Indian we the being it's generally than on margins being that we've or but Hi. at in now been par, that's you us case in region question. the pick lower

European both some as global any as While seen our haven't deterioration. U.S., case, players in margin well for the we heritage competition, of their from

could if think on the or the impact disconnect you global terms what for essentially peers? companies help understand you Indian versus do the margin the of So explains margins profile us in

Thierry Delaporte

the me much too comment to margin do of me colleagues, have asking trends asked my what do? it them you for to is respect Manik, to you're that. I

Manik Taneja

I my just repeat question.

the while a [technical players difficulty] -- all While have …

Thierry Delaporte

But me don't Manik, I'll that. hold try. okay? best, okay. I my try Yes, I that, will against get

have of was to been Because market, And need gone high the happens expensive backfill and what up. resources. the is evolution the attrition of a demand backfilled, the has the Why impacted? the [indiscernible]? employees be why of are attrition, So up? Because in has that we gone of with Why cost more employees. margin cost

experienced, it's industry what last has I our have but months. anybody in the in experienced think also clients XX our

reality uneven it's market is another. one to is a One true from market been is it where India. that extremely Now

their been that have part most impacted. companies the of in biggest India headcount so have And the

explanation. with to That okay add? you my reality. would be Okay. a that, No? it's think right. All I Manik? Jatin, else do you Are have anything

Manik Taneja

the I also you think Thierry, next next a increases to you, on Thank volatility, price about to to over we wanted think continues for the the Sure. a increases macro get industry to X do be Given still X how X months? over do months? X price sense the margin but lever

Thierry Delaporte

has we've the to understood of was reality given the our if sure a pressure, been see that, when Over clients quarters, case, that, inflation. supply last that the driven okay? it raise lot of really clients. way the same just prices a our on obviously, conscious you it We’ve make been the with focus able to And like, they

not We us to clients the want standpoint. also were to from that of pressure exposed -- same And be want our do us most situation.

I yes, quarter-after-quarter. But on assuming we've pretty at a continue? are continue. to difficult. That it more it think in can work So for don't been where it point see change we being the point market well it should able time becomes to Will time some it. that, I

the time our price expect that should our to continue certainly For view. I we believe clients, being increase from

Manik Taneja

best for all and the future. the you Thank Sure.

Operator

Thank you.

Please of line the Sudheer from is Mahindra ahead. question next go Kotak Our AMC. from Guntupalli

Sudheer Guntupalli

ex drop-off apologies causing is Hi. project if utilization reduction? been basis dropped already Thanks has trainees or points. this client asked. Any XXX opportunity net that any this drop-off But it question has Jatin, almost the for and

Jatin Dalal

the trainees freshers Sudheer, trained excluding Please trainees, is are just organization. in who drop-off. no it there thanks that No, I such I utilization, the for the will asking well. define -- the net question. getting are don't think

I So -- is a freshers, utilization, that. It excluding a not come very on who board. limited have that's period mean, for

we So couple for training in a for it. very they period a it's limited that of months where exclude are

they've completed their and they've they are and productive. gone as projects So on training becoming

why reduction. you seeing of that they a in definition During period overall this come are time, of bench, and that's

improved the However, one, has before, of mentioned two that and quarter clearly quarter compared given very us utilization I to has as benefit. economic

request for worry utilization. this would the aspect numerical not you I quarter, about of So

Sudheer Guntupalli

Jatin. Sure,

a Just follow-up.

understanding? start resources that a utilization quarters. should projects, you the sharp see these as So increase coming getting correct in the the Is built in

Jatin Dalal

Yes.

We more more will forward see move we an as as revenue improvement generative. and in they utilization become

Sudheer Guntupalli

[Indiscernible].

Operator

Thank you.

no to conference are there for would closing Aparna I Ms. hand now the back further to questions, As like comments. Iyer

Jatin Dalal

Yes.

team, Aparna a on those entire New goes our we take and happy who myself, Wipro Aparna. Before Stephanie Diwali New as you Saurav, of to Year wish for behalf And over a and Thierry, Year. it brilliant

Aparna Iyer

Have any Thank for call. do feel please Relations reach you questions, team. to out In happy joining to Diwali your all couldn't and free nice day, Bye. we of case a the Investor take the again.

Operator

this for concludes now us, you your that Limited, lines. Thank you Wipro disconnect of conference. behalf On and joining may you. Thank

Wipro Limited (WIT) 12 Oct 222023 Q2 Earnings call transcript