Q2 2024 Wipro Ltd Earnings Call
Ladies and gentlemen, good day and welcome to victory Limited Q2, FY 'twenty earnings call.
As a reminder, all participant lines will be in the listen only mode.
And then there's been an opportunity for you to ask questions. After the presentation concludes.
Should you need assistance during the conference call. Please.
Please signal an operator by pressing Star then zero on your Touchtone phone.
Please note that this conference is being recorded.
I now hand, the conference over to Mr. Deepak Borda Senior Vice President corporate graduated and Investor Relations.
Are you I know what to yourself.
Oh, Yes the street.
Warm welcome to our Q2 FY 'twenty before on these calls.
I'll begin the call with the business highlights and overview by Pierre <unk>, Our Chief Executive Officer, and managing director.
And a financial overview last year for a partner.
Well I don't think Amit Chaudhry, our chief operating officer.
Afterwards, the operator will open the bridge for Q&A at the top management.
Before I start 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 90 95.
These statements are based on management's current expectation and honest associated with uncertainties and risks.
Which may cause the actual results could differ materially from those expected.
In fact, I think these on risk factors that explain detail finally get FCC.
This program is not going to the peak.
The obligation to update the forward looking statements to reflect events and circumstances. After the date of fighting the.
The conference call will be archived and a transcript available on our website.
Well, what do you with EV.
Thank you I'll get back in.
Good.
Actually good morning, or good afternoon, good evening everyone.
You for joining our second quarter earnings call.
I'll begin with an overview of this quarter's results in detail far Hector.
Yes sure.
Talk about the demand environment.
If some direction for the coming quarter Oh, yes.
And I'll see you Amit, we're joining with their comments as well okay.
So.
Q2 was yet another.
The quarter off strong deep bookings for us.
I can talk value terms.
You closed lost deals to the tune of $1 3 billion.
This is the highest in the last nine quarters.
And this represents 79% year on year, gross and a 6% growth in the quarter on quarter basis.
During the quarter, we booked 14 deals in the greater than $30 million of PCB range. This is 10 in the previous quarter.
Okay bookings from the TCT standpoint, and a $3 8 billion, which is fortunately growth of 6% John .
We have had it this quarter again why don't you were counting the greater than 100 million dollar client category in Q2.
We now have 22 accounts in that bucket.
If you remember.
Backing them.
FY 'twenty, one we had 100 million <unk> accounts. So we doubled the number of accounts you can do 100 medium daughter kept it going.
Which one it is still too close to half a billion dollar deals two of our large accounts.
It's been the case at all.
Paul Costa is now cash flows remained strong at one end rather than 45% of net income in Q2.
EBITDA or earnings before tax and interest of our I T services segment has increased 6%.
All of that gives us confidence that we're winning in the market against.
The backdrop of he couldn't be quickness, the business environment as you will know.
Interesting.
Inflation stayed high.
Is that the interest rates.
Clients are continuing to take a much more rigorous look at their investments they are hyper focused on efficiency.
Optimization of existing investments and the return on new ones.
Yeah.
Lower discretionary spending is really today conversion, our Florida book has become slow it.
Transformation programs that are nearing that project are not being replaced by new ones, but at a slower pace all of these.
It has impacted our top line growth as well.
Digital revenues declined 2% quarter on quarter in constant currency terms.
But even though there is some softness in top line growth, we are continuing to hold margins steady.
Margin for the first half Okay wait 24 was 16 point to 1%.
Well go ahead, and 10% basis points higher than all operating margin. The first handful fish like 20 <unk>.
Now, let's look at you know departments of all four strategic market units.
Well I mean, our America, it's one market units revenue grew.
1% quarter on quarter in constant currency terms.
This revenue growth was led by a strong performance in our health care business.
That's what I was getting the technology product and platform business.
Order bookings in terms of D. C D grew.
Grew 36%.
Our amerigas to market unique she has higher exposure to consulting clients and to the <unk> sector.
So hi.
The higher than usual impact of the macroeconomic slowdown revenues in the Americas declined two 3% quarter on quarter of infusion.
Europe .
She has been a growth engine for the next two quarters.
For our last two yes, sorry.
And by 39% in FY, 'twenty, two and 12% in FY 'twenty suite.
I was also shown to have seen slowing demand and a re prioritization of client spend.
Weighing on the overall business revenues in this market declined 5% quarter on quarter.
Having said that we.
We are seeing strong traction on the other booking site, which in total contract value terms increased 10% in Q2 year on year.
Given our strong bookings in this market, we are confident office suites to rebound.
Finally in our media business revenues for the quarter declined 5% quarter over quarter.
Our goal in this region.
Absolutely to capture the rapidly rising market.
So that's where we're leveraging our global scale and domain expertise.
You actually continue to move our portfolio towards higher value of transformation projects.
This focus on improving the quality of revenue is now.
Reflecting in our margin performance, which has improved 330 basis points.
The last five quarters.
Being able to sustain margin despite software revenue.
This is largely due to our ongoing transformation efforts. This includes.
Both programs are on delivery excellence and operational efficiencies.
Across the board, we are pivoting, our business towards high quality high potential businesses, and reducing our loss making accounts.
We're also working on faster deployment.
You did ask quarter talent utilization increased to 84, 5%.
An improvement of 80 basis points quarter over quarter.
So no it couldn't segmentation strategy together with the one we put our approach is helping us see bigger deals with existing clients and win in a consolidating market and I'm proud that we are seeing these benefits within.
Three months after moving to the new four global business line operating model.
I mean, it will share more details shortly.
Yeah.
Both on the video reassurance inefficiencies. These actions are having an immediate positive impact while also setting us up for long term margin resilience because profitable and sustainable growth is our top priority.
Yeah.
In Europe , we closed.
Three large consolidation during Q2 at 100% between right.
For example.
The global Bank has selected Wipro as it's possible to deliver multi year digital transformation any shifts across business units.
We probably work with the bank to build solutions to enhance its global product and service is true restaurant seaboard use of AI and also hyper automation.
This will deliver a better customer experience analytics and drive significant operational efficiencies.
It's also important pointed you to drive your attention all.
Our partnership strategy continues to stay strong.
Bookings through our partners.
They just total bookings.
Continued to increase quarter after quarter from 25% in FY 'twenty two.
44% in FY 'twenty, three and it was a 53% E G.
Increasingly.
Clients are not just looking to migrate to the cloud, but also run and grow their businesses more efficiently on the cloud.
First strike cloud services, which we did.
Full stack cloud offering is setting us apart from competition.
Stopping to opportunities across the cloud journey.
For example.
Multinational in the health care and insurance firms wants us to co create the consumer did you experience.
I think our strategy technology partner.
We'll build AI and automation solutions to drive speed to market.
Better client experience and reduce that cost.
Our high performance software engineering program, we'd bring them at least 20% more efficiency.
No.
If you look at the bigger picture in this you will see a powerpoint going transformation is driving a substantial improvement in our market position and that's.
In turn reflected in the types of deals where we can.
Clients now look to us to help them solution and orchestrate their transformation.
This is a complex challenges that's reflecting in the latest customer satisfaction survey as well, we saw NPS expanding by 840 basis points, which is quite substantial.
Okay.
I'll take a few minutes now to show in the date on Wipro as a ice choice 60 strategy.
So you saw our announcement last quarter.
We've trained as many as a 180000 employees E basic January principles.
We haven't ruled out person I based learning pathways to create a pool of specialized talent with deep technical expertise.
We are working with our alliance partners to further advance AI learning pathways through our AI and cloud academies.
Simply also we launched a new Gen AI Center of Excellence, we've IIT Delhi.
We're rapidly integrating <unk> into our processes all solutions in our offerings.
And so far our employees off or are starting to use generali.
Let me give you examples India shall functions. Our teams are seeing significant productivity gains by using general rifle come due date background verification.
In marketing, we are using generic content generation and translation fast that used to take hours.
Now it takes minutes.
T cells.
Clothing, Jennie O have a research team.
Group sales collaboration and to generate that's high responses.
No, it's engineering business, Jenny I, he's helping with software development and lifecycle automation.
What are the areas with the biggest productivity gain.
Isn't quality engineering and quality assurance testing.
Is that helping with some value creation cogeneration Sim getting data creation as well as execution at scale.
Yeah.
[laughter] initial pilots off these generally apps have been so successful that we're now rolling them out to all our employees.
The client shrunk.
<unk> is now part of every client conversation yes.
A tremendous interest in exploring new use cases.
Great.
Understanding the benefits and implications on stickney.
Today, we have seen a doubling of Jenny I actually projects.
We did just one quarter ago.
But now we're seeing rapid adoption in health care.
Consumer and financial services.
But also in Hi Tech in U T D.
One example.
I can share with you here is the following we are working with a U S based health insurer.
So deploy Eugene AI based chatbot for their agents.
Developing a solution that is fine tuned to be more contextual. So that agents can provide more personalized assistance to every member.
This solution is driving 30 to 40 per cent reduction you're afraid shouldn't cost.
And if you cant improvements in agent productivity and improving net promoter scores.
Another example will be.
Working with a European multinational telecom company to unlock value from data.
Working with different vendor tools and software kids, we are generating high quality synthetic data, we should always the client too.
Probably increased cross border collaboration, but also mitigate bias and eliminate distribution limitations that exist.
In real data.
I haven't taken allergy evolve in G&A I output becomes more accurate, we expect demand for our journey I services and expertise.
To increase greatly over the next six to 12 months frankly.
Frankly.
We're excited by Newport, you do generally presents and we are investing in new use cases, so we shouldn't even for clients as well as upscaling our employees because.
We really want to take a leadership position in this space.
Where are you on our guidance now for the next quarter, we are guiding for a sequential growth of minus three 5% to minus one 5% constant currency terms.
We expect margin to stay range bound as we've seen over the last few quarters.
And the market starts to turn around on the backhaul transformation and efficiency plays we expect to start seeing improvements in the coming quarters.
Despite the rather slow down across businesses.
We will continue to invest in its people.
True training opportunities leadership development global exposure to new clients and technologies.
And body, obviously also rewarding them with merit based salary increases.
Pros intellectual capital our people are our biggest strengths.
But continuing to strengthen our foundation streamline operations and moving towards a more Madame didn't make culture we.
We have the right strategy envision to keep us competitive and resilient.
That.
I'll turn it over to a partner for our comments. Thank you.
Thank you Judy.
Thanks to everyone, who is joining us on the call today.
Data have them quickly.
Some key financial highlights for the quarter just drop it on the revenue that I T services revenue for Q2.
Brian talk with same quarter on quarter in constant currency terms.
She was at the lower end of the wide range for the quarter.
We reported yet another quarter of healthy bookings and total contract value Bums me close.
James to the tune of USD $1.2 billion, which is a 79% yet on yogurt.
We also booked 14 deals which are greater than $30 million in D. C D.
Total bookings from a D C V Jon Bon ton, but cheap aren't $8 billion, which grew 6% yet on that.
Turning to margins.
Our ongoing focus on operational improvements has ensured that the margins remain steady even in a softening revenue environment.
Operating margin for the second quarter was 16.1 for Tim.
100 basis points, yet on Yelp.
Shifting to our cash flow performance on operating cash flow for Q2 is it could be $38 6 billion.
Which is 145% of our net them.
Our free cash flow as a percentage of net income was at 149%.
Cash flow has been strong for the first half.
137% of net income at the end of Q2, we had $4 $1 billion of golf Gosh, and $2.2 billion of net cash on the balance sheet.
Our net income attributable to the shareholders for the quarter was at INR $26 5 billion.
Our EPS grew four 1% year on year our.
Our effective tax rate to remain flat for Q2 at 24%.
On the Forex song I realized the need for IV services.
In Q2 was 82.54.
Our DSO for the quarter is that 79 days, which is an improvement of three days year on year.
To conclude our guidance for the next quarter. So it might be services segment is expected to be in the range of $2 $617 billion to coupon $672 billion.
Sean flips to a sequential guidance of negative three 5% to negative one 5% in constant currency terms.
Thank you and I'll do them.
Thank you I'll find out.
Hello, everyone.
I will share some updates on our business transformation and how that's reflecting in a steady margin performance.
Our new four global business line model has allowed us to deliver a one the pro service excellence approach to our clients.
As reflected in our latest customer satisfaction survey without N P S expanding by 840 basis points.
This directly to fix up the performance with clients.
E program governance and our capabilities.
And this is further strengthening our delivery let's see.
On the delivery excellent site.
We have been very focused on consistency efficiency and productivity for our clients.
Automation engine is a cornerstone here with the corresponding productivity kicking in both on the delivery and functional sites.
Over the last quarter on the operational efficiency front.
Your line is now up to 84, 5%.
In fact utilization has increased by almost 470 basis points in the last four quarters.
Including utilization of Nextgen associates.
We have taken several actions here.
From sustained debenture reduction efforts.
Optimization to onshore offshore rationalization and rigor around subcontracting costs.
Alongside the are keeping a very close eye on discretionary expense with increased vigor around cost and efficiency management.
Here he has talked about scale being our biggest currency on their talent Reskilling side, we continue to scale Jenny I got it.
Well 180000 of our employees have taken the first journey I of course.
Focus upskilling initiatives across skilled families are in place now.
Building several accounted categories.
These are collaborative initiatives with our clients, providing a scaling roadmap for our teams to serve them better.
I am pleased with the progress we have made so far and a lot more lies ahead.
Now I turn it back over to deepen.
Yes, yes, now we can open up the question and answer session.
Very much.
We will now begin the question and answer session.
Anyone who wishes to ask a question May press star and one on debt Touchtone telephone.
If you wish to remove yourself from the question queue, you met the stock and two.
Participants are requested to use the handsets are in asking a question.
Ladies and gentlemen, Stephens, Inc. For a moment Glenn good question Joe Sandwich.
We have our first question from the line of Kumar Rakesh from BNP part about please go ahead.
Hi, Good evening. Thank you for taking my question my.
My first question was around the large believer in D. C. D. C. Over the last few quarters here have been consistently reporting 1 billion on Moodle Nike D. C D.
Over the last two quarters its yard revenue from existing customers have really struggled to get those.
And of those 99.6 fish.
Oh, it's one number which was about 90 596, 4% last year.
Does that imply that large part of these deals, which we are seeing our scientists made that you don't disclose those key topics and this challenge of how do you be getting knocked around something you can do it in the news not just unique to you we have seen with other companies.
But that's usually a guidance already coming to do suggest that in the coming quarters. They are going to see a much better outlook.
In contrast, your outlook suggests that the group is going to flow through could be exceeded each from here on in it.
Absolutely in contrast to their dealer in D. C. D maturity. So is that an inflection that almost entirely part of their knowledge D. D. C. D. C. Here. It is actually is in your room and not meaningfully new D. C D.
Kumar Rakesh this is Julie.
This is not the case I think your so to me are reflecting on the fact that indeed.
Well casing EV being very solid over the last quarter that is true.
What we are seeing is we are winning more large deals. They are it gives a good balance between new and renewals. When you work can include increased co op in the case of consolidations of weeks, we have different types of you know it goes out to you as well.
What is clear is that while we are at I think you will.
Recognize also what we've said because the market doesn't dramatically change versus the previous.
Last quarter is that while we win large deals.
They take a little bit more time to convert into revenue.
This lower for you. Both these cases you spend being clock if you like a with our clients that is kind of unknown.
Now what type of revenue.
We are missing so that's it's it's if it.
It is the.
The revenue trend yours, you're seeing is a reflection of those two different trading and clarity on the one side yes.
They're very decent volume of business in the market, we have a strong pipeline and we are we need a nice share of these deals.
We are winning more loudly than before every quarter, we improve I mean, it's quite interesting we've moved from never going into last year.
Growing occasionally a big one to now systemic more systematically yeah, we'd say when.
Our large deals this time too.
So that's a billion dollar deal for the same quarter or is it is a sign of that and yet at the same time.
Discretionary spend even though you know that you know like everybody you know industry, we have a certain volume of hobbies missed that use more of these Christian I E. We might be a little more exposed than some others because of our significant Cleveland and consulting business in particular, and and and even if we know that it will be the first ones bumps.
Back when the demand is.
But so that's what we are saying and now the last thing is I accept the fact that we are guiding for the for the crop to.
Coming up beyond that and that's probably a Y. That's how we are guiding to you, but we also believe that you know should the market remain.
As it is you know we will slowly bonds back.
Thanks to you for that my second question was I don't know a strategy of exiting from just wondering the Collins.
We started seeing the effect of that from last year's fourth quarter.
And since then beat revenue for services has come down by about 90 million down there.
Hum.
Does it appears to be proactively pruning smaller coincide their time and their demand environment is feed could be counterproductive.
Judy could be runoffs duties and by our group could be getting them back there.
Well [noise].
So first of all Kumar.
I reckon shelf strategy.
You elaborated back in 2020 was.
<unk> clearly did.
Good luck.
Large accounts, we were we had at that time, you know elephant accounts over 100 million, which was clearly lower than you know most.
The industries companies of similar size.
And so we felt that you know tube.
You cannot invest union literally.
Across the board you have to make choices and that makes a lot more sense to invest in.
Two partnership relationship with client that will be.
Hello, you to drive significant growth potential of significant growth and that's what we've done. It means that you know instead of you know the cost of cell phone very smaller counties higher. It is proven we know that you know.
Until a certain point in time, you are spending an abnormal amount of time to kill.
It was very small deals and not so much more time to close buildings. So.
That's conscious decision.
To focus on less nimble, if you're counting but be meaningful as a partner in these accounts be their partner in the transformation.
That's what we've done so I'll give you two data points.
Kumar Rakesh one.
If you look at the top.
Accounts the accounts over 100 million, we've doubled the number of these accounts into yours.
From 11 to 22.
Thank goodness that sit on thing.
If you look at what he called out metal accounts, which are you know our top eight T accounts they've actually.
Resisted a lot better.
And the smaller one offs. So I think it's just the confirmation that this is the right strategy, we need to continue to focus our attention on those accounts, where there will be growth over the next quarters, but also the accounts that are shaping our industry and not and would use the the wasted investments.
In.
Well you know we will never go beyond a certain point in time off site.
Thanks Street, so they're actually behind the strategies are really really appreciate it. My question was more I don't know if that strategy being aggressive in Sweden, that's it.
Yeah you.
That's down that sounds pretty contribute okay brilliant.
So let me address disappointing to us.
Hmm.
What are we doing that and come off you know the real strategy over the last three years.
The first two years has been.
Significant growth there was significant growth in this market we've gone all in okay, and we've really got a good share of the gross AR you know if you look at the gross you know during that time company as changing scale like 40 over 40% increase in size.
In 10 quarters.
That's changed I think you will recognize that towards me the market is different.
There's more macro.
Stability uncertainty.
Cautiousness ever seen.
You know this is not a growth market right now its face it right and so I think we all recognize that you know this is not necessarily a market with anybody.
Showing into muscles.
For us.
<unk> is to continue our focus on our transformation.
Continue to be more relevant and continue to drive you know a a R. You know investment priorities around AI around cloud around security.
Can you to you know a great off patent continue to be more nimble more efficient.
And that's how we are you will recognize that's how we continue to maintain and actually.
Deliver the level of margins we are at in Q2.
And so that's you know we are ready for when the market will bounce back to go back into growth mode.
Thanks for sharing your thoughts.
Thank you.
We have a next question from the line of Goto lithium from Morgan Stanley . Please go ahead.
Hi, Thanks for taking my questions. So my first question is regarding initiatives.
Taken by us to broaden our funnel.
Includes big deals, which are like $500 million plus kind of part D. C V pipeline in pursuit of Siem.
And related question is also around nature of bookings that we have had.
More on the cost side or more on transformation side have you made any tweaks in strategy to be linked to the changed market conditions when deals are coming more towards the cost optimization side. Thank you.
Good question go off so I'll I'll take a shot at those two upon I feel free to jump in or maybe if you do you feel like it. So on the first point, which is the the the focus on the larger deals I think it was.
Clear that you know.
Back a few years ago, we were not getting we throw our fair share of larger deals.
And.
You know large you aren't giving you all the southern level off.
Yeah.
Okay, Zillions and also a southern living off impact.
With the client.
And that is completely in the in the center of our strategy to develop as I said.
Before to develop you know strategic relation and meaningful relation with our clients.
So to do so we're starting to build you know with cell C. G U.
If any we started to build our lodging.
Lodging team right. It started with you know, bringing talent people that I've been there I'll be dealers that have been.
No.
What's your teams in the past we've also obviously refocused all.
The county executives and our leaders to.
Be ready to go for larger deals.
It has.
But you shouldn't have to engage at a different level with our clients.
This pay more attention to there.
Priorities and challenges and be proactive in bringing back to them.
Solutions that would address the challenges.
And we've started to win.
Bob Jones.
Sofie please.
One big one.
And then another big one, but it was more Iraqi could be beginning and then we started to win.
More of these small dreams.
And larger one seat size and I think it's becoming a must.
A machine now decided we throw away or you know as part of our deals we have are significant.
What do you Wanna philosophies every quarter and I think you know we expect this to continue.
Over the next quarters.
So that's on the large deals.
The.
Cost actions you you ask her off.
If I understood well your question was our view.
How did you balance focus on them.
Tactic.
Some of it in the pipeline.
Oh, Okay, sorry, [laughter]. So okay. So yes that that is I would say go off on the pipeline I would say.
There is certainly an evolution of the type of deals that we are seeing and the attention to our cost takeout costs optimization margin productivity and so on.
Certainly a lot bigger than it was some cough downcycle there is no doubt.
Thank you.
Thank you.
We have a next question from the line of Bp's Mad Dog from empty. Please go ahead.
Yes, thanks for the opportunity a couple of Christian.
Well first of all let's Davidson marketing increase this quarter you did see some spike.
There is a good uptick yoki worry away.
Can I ask what condition would drive it.
Significant existing sales and marketing.
Related question is if I look a number of new client reach weird every quarter you do see moderation for last few quarters. So these two numbers are not matching with their data maybe if you can provide some soon.
Second question is about the if I look reconciliation item.
Oh, maybe indicative.
Critics, and he's driving that item this quarter a good any day increase of between 2 billion loss in the nine eight am I wouldnt sooner and they're saying they are displaying now you're doing how would you expect it to trend in coming quarters. Thank you.
But the pace deal.
Sales and marketing expenses being high it's perfectly clean dressings to one of the line items on depreciation and amortization, maybe it's different in accelerated amortization pertaining to one of our Boston main Ganji Brooks.
And that is likely to run off and it should normalize.
At this time.
The second piece that you said on the number of accounts being module.
Ladies or John but it is a part of the strategy we are focusing on.
On increasing and expanding our fleet.
Our top client relationships and our you know.
It is in line with what yeah pursuing a strategy overdone.
So your third question that you had asked on that he can find me neither.
Nice quarter better than Q1 of this fiscal year, you had announced that knowing for dawn.
The macroeconomic environment and put us in line with all the transformation that we are pursuing you wanted to be more agile and we had announced a restructuring program on the rich data.
Taken in a restructuring expenses booked in Q1, and we'd indicated that there would be a spillover into Q2.
Richard No.
No.
Booked in that filing I guess just first.
For once the employee related costs and this one off in nature.
And that is how you shouldn't look like.
So is it an award from Q2 onwards. Please.
We then would you expect it to be good.
So we're not calling for any particular guidance on this you said that it was one off in nature.
We do not take into account what is shifting and what changed in our business. If there is more deeply appreciate it with you at the next block.
Okay.
Thank you.
Do you have a next question from the line of Alicia Kumar from JM Financial. Please go ahead.
Yeah. Thanks.
And then you mentioned that you expect you know next couple of quarters things can move up.
Just wondering what is driving that confidence.
I, just see that the run off of the speech needed projects.
So the last couple of forces that come into our name Oh.
Thank you know general demand.
Hum.
Some of them.
Yes.
Thanks for your question I'll try to to address it staying within our our put he's seen some off guidance.
So you know one is certainly the guidance for Q3 <unk>.
Includes something.
It's something for them off our photos, let's be clear a bigger than it was you know the previous you're right. It's it's it's a fact.
Which we don't necessarily expect to repeat that for sure.
The country is.
You know the fact that.
<unk>.
Well talk took off too.
With our level of P. C V. We continue to build the backlog of deals. So there's a bigger proportion of our revenue that gets covered by contract if you like for the quarters to come.
So you know we are staying sort of knee cautious and as you know we are not guiding beyond this quarter, but you know it feels step you know.
You know, we can reasonably expect a rebound to come.
Or after.
So that's helpful. Just one follow up maybe so on order backlog you mentioned so right now we are winning gainfully employed.
And the same thing.
The accretion on studying the liquids business.
So.
I mean, we don't give any color in terms of the order backlog.
Well you know what.
Possibly.
Given that these two are you now.
You mentioned the misinformation.
Hum.
Well, you know that'd be chicken.
One the type of deals you know includes a bigger proportion of larger deals than before okay, which you know will trigger a biggest stickiness in these accounts going forward no doubt.
They can do.
The very nature of those larger deals tend to be more strategy.
So the type of deals.
You know I'm looking at our portfolio.
A lot of work over the last quarters too.
Continued the rotation of our portfolio market. The lazy days, you know around data around security around cloud and this is what's what's happened.
Engineering and this is what's happening so I would say the nature of these deals.
And do you continue to evolve.
Theres a greater attention to you know cost rationalization. Therefore, you know producing business case, Oh did you bring outcomes you know those those are typically what we are seeing in the deals that we are closing.
And you know.
I would say also we are seeing you know the.
Good volume of deals.
Clients working on the consolidation of their providers, where we are seeing a box you need to use too.
Expand our position in these accounts.
Establish a kumar.
Thank you.
Thank you.
I mean, you have a next question from the line of getting space from minimal Barney cookies. Please go ahead.
Yeah, Thanks for the opportunity.
Activity, how would you characterize moody's guidance, he seemed more optimistic or pessimistic today compared to.
Okay. Then you attack the Virgin theme runs back with Dick's went back that's question number one.
If I understood well Girish, who asked me to characterize the mood of the market of declines or the client would have clients right.
So you know it's it's an interesting question Gary I'm betting you know every day I speak to clients right.
Yeah first of all.
Technology is.
Center to a lot of their priorities.
They are very mature about technology.
They have a lot of ambition adult how technology will CAD will transform that business.
They're very curious about how AI and Jenny I use.
You know.
These are impacting or transforming or helping them be more efficient in their in their in their industry and a lot of those discussions are around that.
Yeah, he's a certain level of cautiousness.
To engage new program, there is a certain level of cautiousness too.
No.
To spend.
As much as what they used to spend in the previous quarter or the previous years.
So.
They are like you and I. They are reading the newspaper every day they see the news.
The American economy, the European economy.
Was.
Ah you get in there and the fact that you know all of this is creating a silicon.
Yeah.
Level of instability and anxiety.
A lot of people are starting to project himself and say, okay. It's gonna be time to resume some of those programs because the business will you know obviously social from less attention to technology.
So that's you know the mood at I have to say is you know way cautious and anxious.
But at the same time very aware of the fact that you know it's gonna be time to to resume a doozy investments sooner than later.
Over to you.
Yeah.
Uh huh.
You talked in your remarks in your prepared remarks.
And can you give me on that.
To what extent, they're using guaranteed thing I agree and data you on that journey.
Thank you me like 12 months down the road then what are the kind of productivity gains.
And Hmm.
Uh huh.
The presentation.
I'm actually asking for.
Mr. Huang I'm, sorry, and I thought of it.
Yes.
Yeah. This is regarding humidity yeah.
Can you give me.
It does not that is clear.
Okay.
Thanks.
Thank you.
It is.
I can at this is that the right at the M. D C T L I.
And we the hard parts of your question and I want to kind of address some parts of it one was around what is our strategy. We believed agenda today, either fundamentally change many businesses and Oh I feel the way we live.
So he had been very very aggressive and in the last six months, we have adopted generic as AI history.
Seen line, our technology business processes as well as our as our people.
Early early signs and this is very very early but early signs are indicative of.
Productivity gains and in many areas, we talked a little bit about them in the HR space, particularly around background checks a lot of work. We do is around employee hiring and retention training and yeah and managing so a lot of hard work.
It's now being seen line accusing 90 park, so far work with you and they are getting into the eye in the space are are very positive and encouraging in terms of productivity gains the.
Similarly on the quality assurance testing practice.
This is been quite interesting because the last two to three months to kind of find it seems that the brands are indicative that weekend.
Significantly reduce the amount, but not the amount of time or the number of hours. It would take for us to be able to they perform functional testing are performed specifically around data generation and mylan setup.
Early tests and early pilots are very encouraging and we hope to continue to give you updates on this and that the rollout as well as how we'll take our learnings from Encana and adoption to our customers shortly.
Thank you.
We have a next question from the line of Sandeep Shah from <unk> Securities. Please go ahead.
Yeah, hi, thanks for the opportunity.
If I just look at third quarter to date look.
Look at the plus button plus nine.
Nine months of this financial year.
It will be a whole bunch of decline.
So y O y.
It will be less.
In Washington, DC, and Boston and this would be a second level there at all.
On organic basis.
I couldn't do or that the industry. So it's really my question is do we need.
Gross but I wasn't stopping.
I think we're all for babies.
Certainly that would be also things are yet to be.
And introspect they'll all go to market model because deal wins are.
Okay.
Everybody is willing but out of Broadridge has been lagging corporate off per quarter.
So I think it's almost like when people altogether.
So some people.
We are very clear.
And we pro on the way we are we want to progress.
We have our own journey, we are can be find our own strategy and we have our own ambition and our own focus overdue clusters, you know there'll be quarters, where we've grown more someone's always growing less and that's a L. T.
What matters is to look at the progression over the certain period of time and look at you know what we've done over the last years and I think you'll have it.
The response and come off our growth strategy.
Roes that you know this organization with this leadership team has been able to you know drive over the last three.
Three years is actually a pretty decent level of growth, we always want more growth Trust me sandeep, but at the same time you know we are focusing on our transformation as much as we are focusing on the day to day performance that's incredibly important.
Do you need to reflect and understand that.
The way, we have redefined our ambition the way we have invested in our organization and talent in kept IBD teasing solutions the way we've invested in our system.
Way, we are invested in consulting capabilities to reposition ourselves.
You know OPEC modality in our you know our own efficiency all of that used to be taken into account and you cannot take only one element of the performance in isolation of the rice. That's how we are looking at all progression.
We are happy with where we are for sure.
We're always trying to do more and we always ambitious to do more but we are looking ahead of us quite confident.
At our opportunity to get back into growth as the market you.
You know get a little better.
Frankly.
Okay, that's fair.
Next question.
Right.
Mhm broadband rebounded the group is it fair to assume that the fourth quarter onward by them.
And then you kind of hope you're all doing well.
Are you, indicating that you bought from you.
Or maybe you want do you want.
So sandeep I know you you will not get anything more from me.
You know we are not guiding beyond the.
During the quarter.
Yeah.
Okay, Okay and a question.
Oh cool, but not just in terms of margin.
In fact, these eggs are effective from first off.
But I can see.
It looks like from the guidance.
Yourself.
That's not yours.
In short a lot of momentum.
You bet.
There could be some system and 5000 number I didn't because that's what brought that down.
Thank you.
So high from D. A.
If you've already highlighted the headwinds that we are talking quite a clean break.
There will be pressure on margins.
We've done very well.
Remaining resilient in the first half the efficiency measures have only intensified.
You know it will be a challenging task and that's why the effect that you know our endeavor would be to be range bound in terms of what we've delivered over the last few quarters, but I agree with you that bit odd moorhead, great actually start the clock.
Okay. Thanks, Thanks for my phone.
Congratulations.
Thank you.
We have a next question from the line of Ravi Menon from Macquarie. Please go ahead.
Hi, I'm, just telling you mentioned about you know your win rates in the off season European Conference event, Oh could you comment a bit on how that's changed.
Over the last few years.
So.
[laughter], you specifically to Europe broadly correct.
Particularly the U S a theory.
Oh great.
Oh U S.
Oh, Okay, sorry, so.
I'd say well you know we do not have a 100% score in your U S. It doesn't mean, it's it's a basketball I think we've done very well in the U S. As well, we just highlighted the waters with pets in school in Europe , because it was a great too.
We we we consider that you know this is a.
Quite a quite to performance, but I you know the performance of the win rate is actually.
In cooling and strong.
In the U S like it easing in Europe are actually in Asia Pac.
Yeah.
So overall, you would say that you've seen win rates improve and we're getting to a point, that's where I'm back to actually that's why you're seeing the D C to be right.
I have a little step.
Yeah, sorry, sorry, yeah, so two of them what.
What we are seeing is that we are getting better at where do you find the deals that we see in the pipeline to reduce the Oh.
Lots of investments if you like and so it is definitely delivering results you know there's there's no doubt that you know when we've you know.
Going through the qualification process and feel that you know this is a deal that you know we can we can win then the entire mobilization of the team is here to to drive it to the finish line.
Thank you one last follow up on Europe , getting pre salt and surprising decline here.
Any specific industry, Oh country that doesn't responsible lobster.
Yeah.
Youre right. It is a surprising declined for Europe I can't imagine for you given the way we held pretty strongly the previous quarter.
Thank you know I'm looking at that on a just but to me. This is primarily in financial services.
Financial services, primarily.
As many of them actually incorrect and manufacturing so two two sectors no I mean, we haven't lost any accounts. It sounds like you know we've had a drama but certainly.
Some.
If he can slowdown no teaching some of our large accounting and financial services and manufacturing in Europe .
Having said.
That's that's what Ravi if I can just add one one.
Element.
Pipeline continues to be strong in Europe .
You know the leadership team in Europe is pretty bullish.
So it gives us confidence that Europe will bump back up rapidly.
Thanks, Alastair pathologist had a topic that's like interrupted.
Thanks Best of luck.
You're welcome thank you.
Thank you.
We have a next question from the line of upward pressure from H D. A C securities. Please go ahead.
Thanks for taking my question Gary.
Gary.
It'd be interesting to my thoughts and emphasize once again.
Terms of how do you see the impact of.
A potential <unk>.
Proposals.
Uh huh.
It's bags in.
It didn't impact on tech spend.
And then related piece could be on some large banking customers love getting out the audit structure change in terms of being adding that person then we do see this as an opportunity if unencumbered such as methanol or should that be I'm always going to be pushed out.
Yeah.
But how do you your questions are specific to do your financial services sector. I think you know you know certainly essential services sector has been.
A slower significantly slower this year I think we are seeing it across the board.
It actually started in May.
Eric.
Danny moved to Europe , we are seeing places and Buffy Kudos, you know type of just to maybe bags and you're in America, where.
Gross is coming back.
So I would say.
It dissolves Tiffany T places in the banks, where.
But when I was referring earlier discussions I've had with.
Clients, telling me you know.
We have a lot of programs that are you know in the waiting room ready to be launched in stock.
To me it is no in the banks. It so he ADT banks are definitely focusing on cost takeout and productivity.
The site, there's a lot of consolidation activities.
Activities going on which is you know we see it as an opportunity for us no doubt absolutely no doubt.
So you know that's what we are doing.
Oh, thanks for the color on that Jenny just just one more question.
Yes.
Hello, John .
Thank you Pete.
Yeah.
Thank you.
Yeah.
Ladies and gentlemen that was the last question for today I would now like to hand, the conference back to Mr. Deepak borne out for closing comments over to you Sir.
Yeah.
Thank you all for joining the call in case, we could not take any questions due to time constraints ease.
To reach out to Investor Relations team.
Have a nice evening. Thank you so much.
Thank you.
On behalf of Wipro limited that concludes this conference. Thank.
You for joining us and you may now disconnect your lines.
Yeah.
Yeah.
Bravo.