Q3 2023 Wipro Ltd Earnings Call
Ladies and gentlemen, good day and welcome to the Vectren Limited Q3, FY2023 earnings conference call.
As a reminder, all participant lines will be in the listen only mode.
There will be an opportunity for you to ask questions. After the presentation concludes.
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Please note that this conference is being recorded.
I now hand, the conference over to Mr. Deepak Kumar Dora Senior Vice President corporate Treasurer and Investor Relations.
And over to yourself.
Thank you and Bob.
Warm welcome to our Q3 FY2023 on these calls and wish you all a happy new year.
We'll begin the call with our business highlights and overview why do you have you done Buck our Chief Executive Officer, and managing director followed by financial overview by our CFO jetting.
Afterwards, the operator will open the bridge for question and answers with our management team.
Before he starts let me draw your attention to the fact that during this call. We may make certain forward looking statements within the meaning of private Securities Litigation Reform Act 1995.
These statements are based on management's current expectations.
Associated with uncertainties and risks, which may cause the actual results to differ materially from those expected.
Uncertainties and risk factors I explained you know where do you see in filings at the FCC.
It does not undertake any obligation to update the forward looking statements to reflect events and circumstances. After the date of filing.
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Okay.
Thank you Deepak and thank you everyone.
Hello, Good morning, Good afternoon. Good evening to you all thank you for that.
Joining our third quarter results.
From our entire leadership team I'd like to wish you. Firstly fantastic you go ahead.
We are.
Mistake about 2020 Street did it go.
Ground breaking work for our clients and continue on a gross tragic doing.
You talk about some of the opportunities that are ahead of us.
Joining me today, he's our CFO , Judy you know them well.
Oh, Chief growth Officer Stephanie.
Charles So Robyn.
And I'm pleased to introduce you to our new Chief operating officer, Amit children.
Earlier today, we reported our third quarter results as you know I'm pleased to share that we have delivered one and.
Another quarter of double digit revenue growth.
Kent.
Record order bookings for the full $3 billion.
Led by large deals signing for the $1 billion.
Margin expansion also drilled in 20 basis points.
Huge surge in cash conversion.
In the fourth straight quarter of lower attrition.
Looking at the macroeconomic environment a D.
Macroeconomic uncertainty.
We had discussed last quarter come to us there's no doubt.
However.
Next spending remains robust.
He had all clients.
They're looking for value driven transformation tied to governance.
An improved return on investments.
Cloud transformation continues to be a priority even as we see a higher focus on returns.
It's against this backdrop that we have delivered our highest ever bookings total contract value terms clearly.
Restaurants, we've been making all clients all its faults.
Bring about a shift in our portfolio and productivity.
All paying off now.
On a year on year basis, our bookings.
Total contract value terms grew 26% in Q3.
Signed and live in large deals with a total contract value of over $1 billion.
This strong booking trajectory translates into a 50% 55 as you know since you're on your gross you know large deep bookings on a year to date basis.
And by the way our pipeline, though cloud do you choose both strong.
And diversify.
Yeah.
Looking at the market three or four markets grew more than 20% year on year.
So telecom.
As well.
Some interesting insights worth mentioning here.
One our strong bookings were driven by weak rose full stride cloud services and engineering services.
<unk> grew at 25% and 45% year on year, respectively.
Yeah.
Chicken a large deals included new and existing clients seeking a transformation partner or.
Going through vendor consolidation.
He was with existing clients are often.
I can't deny buys services expansion, taking market share from Moses.
Frankly, you're expanding into new areas of our clients' businesses.
The deepening of our relationships with all claims.
Improved delivery execution.
Hi, Yo casino satisfaction schools, and finally by strong ecosystem.
Yes.
In fact.
Our customer satisfaction score has improved versus the previous saturated by 10 percentage points.
<unk> got a book improves.
Frankly, that's all business strategy is working.
So point our expertise in business transformation.
Coupled with decades of experience in delivering cost optimal solutions.
Is the combination all clients are seeking in this market.
A good example of this easy.
Recent deal, we signed with a U S based financial information and analytics and ratings at GNC.
The project involves.
Integration and management of their infrastructure and security to use to eat and <unk>.
[noise] formation partner, we will help them improve their future readiness at a lower cost.
No.
Let's turn to revenue growth.
And first I'd like to.
Note that over the last 10 quarters we.
We have grown out.
At a very rapid pace.
Our revenues have grown 45% and head count has grown by 40% well now.
Much bigger in scale.
<unk> is a bread sub service offerings.
And deeper client relationships.
In Q3, we recorded our seventh straight quarter of double digit revenue growth.
We grew 10, 4% on a year on year basis.
In 0.6% sequentially in constant currency terms.
Oh sequential gross.
It was impacted by Shadows as expected and lower discretionary spending by clients.
We have <unk>.
To turn the tide on margins.
The hard work, we've put in to improve our supply chain to delivery excellence.
<unk> automation.
That's actually resulted in greater efficiencies.
What would the SaaS contributed to margin expansion of 20 basis points quarter on quarter operating margin definitely is now at 16, 3%.
She was 15, 1% last quarter.
Later I'll ask.
Judging to talk to you in more details about the margin.
But I do want to mention that this margin expansion is after absorbing the impact of three full months of salary increases that wave.
That we've offered to all colleagues.
Also factors quarterly promotions.
As well as the restricted stock units, we've granted to all senior employees.
Yeah.
Another good news has been on the cash commission compensation side, we so Rob is cash conversion for the so called 243% of net income.
I would now.
Share some details on our service offerings and sectors and how we are continuing to increase market share.
Market by market, one all market.
The Cubs won business grew 11% year on year in Q3.
And inside the fastest growing sector in that market was.
Communication media and information services, which grew at 14% year on year.
Looking now at Amerigas to business.
<unk> grew 9% join you in Q3.
And they are manufacturing led the pack with more than 18% year on year groups.
Besides energy and utilities Securities capital markets and insurance also recorded good growth of more than 12% each.
Order bookings grew 40% year on year.
Our business in Europe .
So that's continued to be used chunghwa spine.
Double digit growth for seven quarters in a row.
Europe delivered a year on year growth of 12% in this quarter almost all the markets in Europe .
Grew double digits.
Led by the Nordics.
Our UK and Ireland.
Germany and south in Europe .
The order book total contract value.
Yes.
Through or so 25% on the year on year old visas.
Finally.
Our media, which stands for our Asia Pac immediately used an extra weekend region.
Grew at 7% year on year in just one quarter.
Regions that need it.
I must say, particularly well during the quarter with southeast Asia.
But also the middle East all transformation they faults in this region I've started yielding the results very visible this quarter, we closed one of our largest deals in this market.
The order booking suite they grew 22%.
Looking forward the pipeline is strong.
Although all.
I would say we've continued to strengthen existing client relationships.
And I'm pleased to share that all top 10 clients grew 15% year on year, which also hear confirm our strategy around.
Growing large accounts.
Now, let's look at the service offerings.
Ideas like cool tourist.
Oh ideas global business line grew 12% join you in Q3. This growth was led by <unk>.
One cloud.
Transformation, Bob which grew 27% genre.
Absent data, which grew 18% year on year did.
Did you tell experience, which grew 16% year on year and finally.
Engineering services, which grew 12% year on year.
Now looking at the I call part of the house.
The global business line grew 8% year on year in Q3, cybersecurity led the growth at 16% year on year.
By digital operations and platform growing at 9% year on year for Q3.
From a.
Total contract value standpoint, cloud infrastructure, how C O U S.
Business line grew over 50% year on year.
C I S revenues now.
Although as we are lower as we continue to rotate all existing portfolio and move towards the cloud which is.
Very in line with our strategy as you know at the same time.
We are signing long term deals with clients in this business.
We are continuing.
Continuing to evolve.
Stride cloud services business.
New industry offerings, working together always partners.
She is helping.
Helping expand our market coverage.
Stride cloud services continued to be.
The high growth area for us contributing over one set of falling through to revenues today.
Claude expertise.
Spans the entire spectrum of cloud services from cloud strategy migration Bud musician, two full stack industry solutions and running and optimizing cloud.
Partnerships.
The year to be a source of growth as well.
Bookings was hyper growth partners in Q3 continued to be strong nearly $2 billion.
That's a 35% year on year gross.
Bookings strong apus killers today stand at 44% of repos overall booking into myself total contract value.
Uh huh.
Besides scout, we are expanding capabilities in artificial intelligence and data.
And in January .
Increasingly going to market as one wipro.
And these investments.
Are getting noticed.
A U S based energy company has selected us to build an end to end greenfield fully automated warehouse.
In Europe .
The project will allow the client to manage.
Some chemical storage.
While maintaining strict health and security requirements. The swinging if we look at it brings.
<unk> brings together our domain, our engineering D G side.
Cyber security and health and safety capabilities.
But it also underscores how our advisory capabilities.
Can you go in and engineering expense Zhong.
She does for us in the market.
Let me now turn to our most important asset.
People.
I am pleased to share that attrition continues to drop for the fourth straight quarter.
Q3.
Attrition dropped to 21% on a trailing 12 month basis.
Our quarterly unrealized number which dropped 360 basis points quarter on quarter.
Now at 17, 5%.
We are and we are.
Confident that our focused talent strategy will result in continued moderation of saturation in the coming quarters as well frankly.
Second we are recognizing and rewarding all tenant promoting a record number of colleagues in FY2023 the highest ever in fact.
With.
Numerically, 30% more promotions than he makes way between teaching.
Our leadership teams, Brian Sophie expense high performance standards and strong collaboration continues to fuel our growth and our transformation.
And finally, I'm encouraged to see more.
Diversity in our leadership ranks, which has been a focus for the past several years.
And definitely we have more work to do here, we know that but one promising change worth sharing with you is that we have more than doubled the number of women in senior leaderships.
Holds at Wipro.
As it is.
Visible impactful leaders Progressive Kelly you would they be.
Same on straight the impact.
Diversity has on our clients on our business and on our people.
We've been strict about maintaining that focus on talent quality high performance orientation, and inclusion you know graduate hiring as well.
Year to date.
We have hired and on boarded more risks in countries than the whole of previous years and actually than ever before.
No.
As always I will close with an outlook for the full year, we expect full year revenue growth to be at 11, 5% to 12% equal some currency terms on margins.
Q3 numbers now the new base, and we will look to improve it further.
In summary.
I'll say that we had an excellent quarter with record bookings.
Sustained gross.
In <unk> our strategy.
Continues to pay off and we remain on course.
Is that.
We'll hand, it over to jetty now for his comments.
Thank you very much here.
I will quickly summarize the financial highlights for the quarter.
We grew 10 point full but the same yard on year on constant currency terms.
Or might it didn't take funded 120 basis point to 16.3 percentage points.
If you see I D. P. R. It was 22.9 compared to 21.5 last year, so that impacted little bit net income conversion, but despite that sequentially, we delivered 14.8% growth in net income and 2.8% on year on year basis.
Cash flow remained strong at 143, 5% of it.
Operating cash flow as it's like 10 days off our net income.
Our cash at the end of the quarter was $4 6 billion grass.
And $2 7 billion net.
This is a volatile year and quarter on Forex, we had about $4 billion, so forex hedges and our realized rate for quarter four was at three.
Was 82 point goupil.
As Terry mentioned, we have guided for 11.5% to 12% growth in constant currency terms for the full year 'twenty two 'twenty three.
Exchange rates, which I mentioned you not be yet.
Thank you very much for Florida for joining and we'll be very happy to take your questions from here.
Thank you very much sir.
Ladies and gentlemen, we will now begin the question and answer session.
Anyone who wishes to ask a question you May press star and one on that touched on California.
If you wish to remove yourself from the question queue you.
You May press Star two.
Participants are requested to switch the handset mode, while asking a question.
Ladies and gentlemen, we will wait for a moment, while the question Gila centers.
We take the first question is from the line of local Garg from multilateral financial services. Please go ahead.
Yes, Thank you well I don't know.
Hum.
Could you switched your handset mode.
Sure.
Yes, it picks back up.
Yes. Thank you, yes, sorry, I have two questions. The first one for us so far head in and Stephanie If you bid.
I just wanted to better understand how we should we look at that number the total number of not just the law is deep.
Cause if you look at the two keeping.
T T V off 1.3 billion implies a book to bill of almost one and half times.
You have been growing do you think it could be quite time somebody over last few quarters as well.
How should we think about either duration of D. A.
Which obviously then convert into revenues and when should that impact starts flowing through.
And B O the revenue in last four quarters.
The incremental revenue has been barely about 18 million.
You're dealing with continues to grow in the 25% to 30% range. So is there something with just kind of impeding the conversion of these bookings into revenues.
Last four quarters.
So real quick.
Thank you question.
If you want to add of course feel free but you know because you're right I think you know the the persimmon seat bookings.
It has been good for several quarters this quarter has been outstanding.
You know.
Oh I hope this is clear now yes. Thank you, yes, yes, it's good that we should.
Now it looks like Mr. <unk> line has just got disconnected.
<unk>.
In the Meanwhile, we move to our next question that's from the line of Sandeep Shah from <unk> Securities. Please go ahead.
Okay.
Your line is being on mute. Please go ahead with your question Joe.
This seems to be no response from this line will take our next question that is from the line of Gordon.
From Morgan Stanley . Please go ahead.
Alright. Thank you for taking my question happy New year to the first question Eddie.
Thank you.
First question any color on the percentage of our renewals are in D. C. V is it consistent with the historical last few quarters or anything has changed.
And how should one think about.
Timing of a ramp up of the <unk> that you have signed in the current quarter, our wood, what it'd be like a one goofing army now would it be more like a cool phenomenon, how should one think about the timing.
You know this is a this is so golf so first of all happy new year, and so you know you.
You know to your question, so I would say first of all.
The.
Yeah regarding the balance I was trying to remember.
Balance between you know the new and really what I would say this is a you know.
As expected you know does it does.
Healthy balance I would say from one standpoint, you know the deals that you know we have we got we managed to extend them to you know.
Two two sometimes you know widened the scope increase our prisons that's also.
In particular, when we'd be able to consolidate some positions, but we've also had a good volume of new deals, which is quite Ah you know consulting because we know that we will be able to continue to expand.
And in growing those new accounts as well. So this is a good balance I would say a good a good balance between the two.
But what I would say is that for sure. We are seeing growth ahead of us to go out.
So you know these projections for Q4 certainly reflects for the reason that I.
<unk> mentioned before that you beat to the way we are seeing ramp ups happening, but you know it can only go up.
Got it.
Secondly.
So we made a very interesting point on a percentage of the order book coming through hyper Scaler has how should one think about the nature of these deals.
These are easy contract profitability.
Similar to regular to use are there are different kind of nuances one has to keep in mind.
Well so the first the first point drop you know remember back you know me 2020, when we started to lay out our strategy.
<unk> partners was at the center of it and.
Way, we pro was connecting and engaging at this tragic level who's Oh, no it wasn't sufficient and so we've clearly.
We organized ourselves to be able to be a lot more relevant wisdom until we have you know.
Build these teams.
Globally.
With local connections and they'll do the leadership of our she dual function and this is paying off every single quarter ever since.
At that time I remember that you know the revenue we're getting from our top five or six partners was not exceeding a quarter of all bookings and today you know as you heard you know we are not that far from half of the bookings coming from.
Oh hyperscale as well so it gives you a feel for the volume of growth that we've been doing.
Driving wisdom, but.
You know in a very strategic way, so going to clients together developing solutions to get the literal.
Literally developing strategy and going after all the markets.
We will close partners and that is you know that.
Now you can ask.
What type of deal typically you know obviously iPhone skus are.
You know involved in most of our cloud transformation deal. So the whole strategy that we've developed around foods try.
<unk> is has been paying off as well and so you know how you should see it as a relation that is accelerating that he's gaining most of them every day and we will continue to drive growth.
Margin profile actually is is was a good I mean as you can imagine if we are improving our operating margin.
So significant leads because you know the margin we are getting from all deals he's going into right direction I see keeps also we all know that they need to actually.
Vesey broadly now books that you know every time we are.
Taking winning a deal that is more you know that.
Where it's more value based if you like you know we are able to deliver a little bit of a better margins as well.
Oh, great. Thanks for a great expansion lastly, if I can squeeze one in full stride D. C. V grew 25%. This is in context of what we are kind of getting in the market.
Spend is likely to moderate because of the macroeconomic environment.
Or would it be more of a phenomenon of market share gain for you or you'll find them or do you believe that you know that slowdown in cloud spend.
It may not necessarily have happened as at Westfield. Thank you Pete do you know it's interesting. Your question is a good one and garage.
I haven't I have a view on that.
Let me tell you what I've observed and I spend a lot of time with the Hyperscale, especially.
Is that there was a gap.
You know there was a shortage in our ability to deliver on that on the on demand just because of the magnitude of the size of this market and so the fact that they are slowing down it doesn't necessarily mean much eat them off.
<unk> for US I believe that you know was the size of these Apis scanners, even when there are.
Few percentage less you know we can still grow you know.
More or less at the same speed.
I remain very bullish that you know what what we're talking about the cloud that we presented to date, nor self said of our business will continue to gain.
Hmm.
Growing into them off you know proportional toll revenue mix, if you like going forward.
So you know.
Market may slowdown.
He may not slowdown around cloud.
Alright, very clear thanks, a lot and all the best.
Thank you you too.
Thank you. Our next question is from the line of Nathan Buckman Aman from Investec. Please go ahead.
Hello.
Hi, Yeah, good evening, and a very happy new year.
Yeah.
Thank you I had a couple of questions.
First is on Europe . So I think it's been a little counterintuitive almost everyone has been saying very solid growing out the growth out of Europe .
And are these the geographies, which we thought we had relatively strong although I'm actually much weaker.
You could give some color on what exactly are the dynamic exactly yeah.
That's the first question then I had one more after this.
Indeed, I am aware off you know and you should not necessarily commands on you know on the teeth and trends are vis vis the competition are you seeking decays of Wipro.
What is clear is that you know over the last years, we have completely changed.
Speed focus attention and and <unk>.
Or are all impacting Europe is different there is no doubt I think the organization we've put in place with a focus on key strategic market.
The leadership that we've you know he's a highly promoted in these regions. The organization that we have reinforced the connections that we have built with our clients.
The intimacy the ability to combine.
The power of our global network and you know very strong impact.
Impactful.
<unk> a leader in this market he is making a difference and yet and yes, we pro he's a different competitor in Europe today than it was some years ago easy paying off you know I'm, assuming yes, it's clear that you know, yes, we continue to grow we continue to see nice deals we have a nice bump for you.
Also off clients.
In Europe , and you know, we will continue to gain market share in Europe .
Sure.
The second one was more of a clarification.
So I think.
The deal wins have been sort of bleed.
In the last two quarters have been pretty decent compared to the earlier quarter.
And you mentioned that the conversion was low because of the environment.
And then if I just look at how we typically grow in our Q1 apart from one of the large deals in the group at random.
Do you believe are easy understanding correct in terms of the commentary that.
You think.
The level of build in terms of the deal one.
Is.
It's sort of sufficient enough that despite those headwinds you like do you see.
An improvement next year.
From a trajectory perspective.
On a sequencing rotate.
If you look at it that way.
Or alternatively, maybe the flip the flip side of the question is do you think the cost.
Cautiousness by client and we.
Bjorn discretionary things and all of those.
You think that cautiousness should sort of the debate, maybe oh I see getting into the New York and the next vehicle.
So it's and it didn't this is J P. In.
He had anyhow.
And I am smiling because this is one way to talk about Q1 numbers that we don't want to talk about so we will give you. The biosphere investing go question precisely it's a great question, but you know we are not at a point in time, we would answer that but directionally.
<unk> that we are winning large deals with D. C V. The revenue the backlog is improving and it will convert into revenue it's difficult to pinpoint a specific quarter that that will get the boost out of it.
Sure Fair enough. Thank you so much and I'll debate.
Thank you.
We will take our next question from the line of Ravi Menon from Macquarie. Please go ahead.
Alright, thanks for opportunity.
Also on the overall deal looks at it looks like that's really strong. So how would you think about the market.
Especially to even say north of $50 million Oh can.
We disclosed our slots deeds.
So we continue to see that momentum.
Even over the next call it or do you think that is making its largely going to be on hold.
Ravi you your voice came a little muffled, so I hope I understood the equation, but I believe you are asking.
Some.
Some of us on the market itself okay.
Correct.
Yeah, that's right I was just asking about the deal pipeline.
Pipeline do you think that the decision, making good slow at the 14 bps could get a little softer next quarter.
You know when it comes to projecting bookings.
You can certainly raise your.
Nevertheless confidence on the quality of the pipeline and on your trend of Sweden rate, Although you know a certain period of time.
If I base my judgment on that I see that we have another solid quarter on bookings coming.
Head office will it be as good as the one this quarter that I don't know I cannot tell sometimes it depends on the one deal and you know.
It makes a big difference. So I think you know very confident that it will be another solid quarter in terms of bookings.
Let's see how it goes okay.
But.
It'll be tough reflection on the market.
Hum the softness of the economy.
The uncertainty of the macroeconomic environment.
Yeah.
You know I said it in this room three months ago Ravi.
At the time were not necessarily Oh is this where you know, saying it but this hasn't changed.
This hasn't changed in this context.
I can only recognize looking at the performance in the act.
T V T and the feedback from our sales teams.
At the Tech spending remained robust that's that's clear.
I take abuse he controls from the fact that we are we need.
We are nice type of deals and if you look at.
Being a little bit more.
You know looking at the type of deals.
You probably have noticed that we are talking about total contract value. We also look at the annual contract value.
What's interesting is that the total contract value has been the Ohio state, though the annual contract value performance has been also a highest here though.
What I'd say is to me is that we have a good.
Volume.
Large U.
A good volume of medium deal and good volume of smooth.
I see this.
Certainly I don't know if we call. It the texting me all this good PR need of a size of deals or so.
Also.
The fact that on backlog for the quarters to come easily is reinforcing and he's getting stronger.
No reasons for us to be optimistic for next year.
Alright. Thanks for the question, it's a bit of a revenue question if the demand is strong.
I'll be looking at least at the geography, you talked about investing I mean, yeah. Historically, we've used to thinking about the middle east as it relates really lower belly, great profitability geography, So why not focus on the data buckets like supply is still tight there.
Do so.
Middle East is a very important market for us.
Very important market that in fact, you know by size, we probably is one of the big players in the Middle East. So you know we are very proud of our business. We continue to invest in this business such that we've decided to establish the headquarter of the region in Dubai.
444.
June in Dubai, and so you know we have invested we have invested in innovation lab in our.
Capabilities, we have just decided to launch a capital business in the Middle East also few weeks ago.
And we are very bullish about you know our yoga comfortably blue in the middle East over the next two quarters. It will continue to to surprise.
Great. Thank you and best of luck.
Thank you.
Next question is from the line of Surinder.
From Citigroup. Please go ahead.
Yeah, Hi, Kevin just one question, how should we think about the correlation between <unk> and <unk>.
And the reason I asked that question is for the past six quarters.
And it was based in New York.
It is up greater than 24% year on year.
While growth in that it has gone from 25%.
You're right.
You didn't talk about one eight but then that would be higher and in the coming quarters.
So just wanted to understand how we should we think about the correlation between PCB.
Okay.
So Linda this is the Metro medical view, I mean, I will take it.
Yeah, I understand that as well.
Yes.
[laughter] okay.
So I would I mean.
I mean, it didn't have a demand, but more conversion point side, we'd take it.
<unk>.
The the key issue is that I mean, we we have mentioned in the last three quarters that in the first quarter, we paid out.
Our D C with royalties tied to that 28 in this quarter also has been very good.
The conversion.
Has two components it has a future timing component vendors it can work.
And second is clearly the immediate component, which is if it converts.
Into next quarter.
R R.
You know two quarters.
Picked up you have to appreciate the fact that we have won a very large component of P. C V and something that we also covered in theaters speech is that a large component of that is in cloud any thoughts at CIT services, which are typically.
Long ended contracts.
Four to five years.
So we can give you comfort that as we enter every quarter, we are entering with a superior back.
Backlog than what we're getting in the previous quarter.
And the uncertainty around discretionary spend or the conversion of large still continue to pay out in the immediate quarter. So you are not seeing this correlation.
No.
You bet your latest smoothing into Q2, Q3, and Q4 of last year.
It was all in excess of 20%.
So this question was more around like Brian .
Sure.
I've been one damage.
Right.
So.
Just wanted to understand it better.
Wanted to kind of take it offline thats fine.
Yeah, and and we take your points are and do we can we can.
Even in in next quarterly come in through we can cover at this point, specifically, but we feel comfortable that the bookings.
In the current environment is the only way.
To continue to grow.
Because the uncertainty will always mean that you know our business. There is always that is.
So doing all of those projects coming to an end and only way to continue to grow is.
To add more of the golf. So so we feel comfortable but we can cover it.
As we go forward.
Let me just one clarification on your comments on the margin walk you mentioned.
Something in the cost of which which kind of moved away from the cost of employee.
Like cost, but it produces.
Could you just kind of elaborate on that and could you also quantify it.
Yeah. So so oh, so Linda it is quite.
Straightforward.
When you see our employee cost numbers you see on a consolidated.
Basis.
They probably limited.
As you know that we had restructuring costs, which were sitting in the company booked so it was sitting in quarter two employee cost, but when we publish our segment through those and I did services equals sitting in not the United. So this is like maybe it was sitting elsewhere and clearly that reached.
Our carrying costs has not recorded in quarter, three and that does reduce from quarter to quarter that much cost in the employee cost line. When you look at consolidated Wipro limited.
Could you quantify if any that's convenient.
Yeah, Yeah, I'm I can't quantify it but you can also see the last quarter's numbers.
Now I'll be shake will give you a truck.
No. That's very helpful. Thank you so it's about 130 crores.
Thank you Jeff.
Thank you. Our next question is from the line of monarch Danijel from Axis capital. Please go ahead.
Thank you for the up Washington D actually I just wanted to get your sense around the margin improvement trajectory given the fact that over the course of last 18 24 months apart from acquisitions.
They're sending it out yourself.
And against the hate when it came to pesos and now.
He is getting much more moderate.
Listen it looks like there is an audio break so no connection.
Please Mr <unk>.
And you might have to repeat the question.
Sure. Thank you.
Oh and take him in and repeat that question. So the question was on margins for the course of last 18 greatly for the months of fishing you shouldn't on margins because all the things that give me that one.
Oh, and I Wonder I don't know what the Liberty in terms, especially in terms of pesos.
Some of the acquisitions exactly meet.
So now given the fact that growth things can swing down in hiding things keep coming well is there a timeline that you couldn't you would want to stay focused as to as to us getting back to it.
It would be 19% EBITDA margin.
Okay.
Okay. So <unk>.
Thanks, Christian and educating CBO.
Thank you.
But certainly we will take.
This base and make an incremental effort for future, but right now I don't think we should we should go ahead and quantify the quarter basically.
Each particular patient our effort clearly as we articulated in Botswana.
Is that we will be well.
Not the margin.
Slide eight from a medium term standpoint in our trajectory, but our goal when we give them is higher and we will continue to make an effort.
Please be mindful that in quarter <unk>.
Need significant movement envelope and sustain that and on deck relating to mentally.
In Mexico.
Sure. Thank you know limits the feature.
Yeah.
Thank you. Our next question is from the line of Doug <unk> from <unk> capital. Please go ahead.
Hi, Thanks for the opportunity and happy new year.
During the prepared remarks, you mentioned about a modest slowdown in the discretionary spend was this comment related to capital by any chance.
And given the fact that you know.
You have a solid U K European presents one of your competitor had highlighted.
That's a Chilean could see.
Some of the deals are.
When delayed deals could convert in the first half.
Thing that you would like to comment on the scene. Thank you for taking my question.
Yeah.
When I was referring to about two.
Hum discretionary spend I'd be shocked I wasn't.
Roofing to any <unk>.
Specifically I'd say its a I'd say its OLED.
To all kind of discretionary spend.
As you mentioned KEPCO, let me tell you one thing.
The acquisition of KEPCO, and we've done that when was that now 18 months ago.
Was an extremely strategy acquisition depot spoons of this acquisition was too.
Change.
Jim changes for us in the defense side market be.
Going to suddenly completely transformed the type of conversation that we're having with clients in order to be able to really engage with them that stretches you Cleveland and drive large larger program. This is exactly what has happened the performance of KEPCO quarter after quarter over the last 18 months.
It has been.
Very good actually higher than what we had anticipated or expected at the time of the acquisition and that you know the nature of the strategy and the strategic nature of the acquisition.
He's a reality on the ground every day.
So that's I just wanted to be clear about this KEPCO since you mentioned it.
As for discretionary spend are you seeing each.
<unk>.
The type of deals that the client feels they can stop.
Stop.
At any moment in time and this happened with every kind of clients.
Across sectors.
Yeah.
Thank you.
We will take our next question is from the line of Matt.
Please go ahead.
Thanks for the opportunity just on the data.
A related question if I look now press release.
Contained forward, which include we report only gross billing taken any subsequent cancellation terminates and Andrew Jackson is.
The part of the number.
Do we see any different trend at least over the last few quarter, particularly on the municipal Rituxan site.
Uh huh.
Any concern about revenue growth trajectory compared to dealing desk prediction.
Second question is about the growth trend or demand trends. If you can provide some sense about communication be if they stay in consumer. Thank you.
Okay.
Thanks for your question so the first one.
If I understand well. He is about you know has there been more of a constellation of termination easing what that's what I understood right.
And so there is.
We have not let.
Let's be very clear we have not lost one single you know.
It's not like.
There was a question earlier in the nose of form about is it structurally it's not we have not lost a client we have not lost.
And there hasn't been a determination or anything so it sounds like there's a bin.
He he thought he could on those that's the nature of the discretionary spend or the.
The nature of a slightly slower ramp up that is more explaining the revenue profile.
<unk> you want to.
No you're good okay.
You know.
The patient if you got okay. I wanted to also clarify the earlier question base within the so that we conclude this call I'm sitting at vacation.
So dangerous question was what for the for a clarification I would mention that Q2 Q3 Q4 do we propose E. C V growth was quite high and that goes I'm, repeating 31%, 22% and 33% and if I take the average of the three it comes through I don't think the 8% growth in H C V.
And that you can see our 'twenty one 'twenty two growth in revenues what was also 28% plus.
So I'll, let ACB growth did reflecting our revenue growth. Both numbers include eight capital so that Apple to Apple and therefore, we continue to see a strong correlation of our booking business with revenue and you've got any other questions. On this lane IR team will be very happy to take it after the call.
Oh, sorry, the second question you took announcement.
So I need the best you can you can you ask me again.
So it looks second question was about the demand trend what we are seeing in communication be it for the same consumer verticals. Thank you.
Communication.
No particular slowdown in communication the market continued to be good we emphasize we know by reading.
You know like you that you know they are.
Some slow down and we haven't seen it so far the performance you've deemphasize continues to be good I think it's probably you know, let's see but I think it's our ability to really connected to more strategically with our clients, which is getting us to places that are.
Mrs are exposed to to psyche C. D. If you like of what NTT to sub sector was.
Consumer.
Consumer consumer is.
Okay. So the consumer actually same thing if you look at the outperformance you saw it as well.
I I suspect.
However, that <unk> may be a sector between consumer and retail.
America, which pud to get you to beat the explosion in the foreseeable future to photo.
Thank you.
Ladies and gentlemen that was the last question I would now like to hand, the conference back to Mr. <unk>.
For closing comments.
So thank you all for joining the call in case, we could not take any questions or concerns. Please feel free to reach out to the Investor Relations team have a nice day. Thank you.
Thank you members of the management.
Half of Wipro limited that concludes this conference. Thank you for joining US and you may now disconnect your lines.