Q3 2024 Wipro Ltd Earnings Call
Ladies and gentlemen, good day and welcome to Wipro Limited Q3, FY 'twenty earnings call.
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.
Should you need assistance during the conference call. 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 border Senior Vice President corporate Treasurer, and Investor Relations. Thank you and know what do you say.
Thank you.
Welcome to our quarter three FY 'twenty four earnings call.
You're going to begin the call with the business highlights and overview by it.
The lap book, our Chief Executive Officer, and managing director.
Followed by a big operations and delivery by Amit Chaudhuri, our Chief operating officer.
Finally financial overview by our CFO up or not yet.
Afterwards, the operator will open the bridge for Q&A with our management team.
Before he starts let me draw your attention to the fact that during the 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 expectations and are associated with uncertainties and risks.
Which may cause the actual results could differ materially from those expected.
And secondly, a decent respect as I stated in our detailed filings with the FCC.
<unk> does not undertake any obligation to update the forward looking statement to reflect events and circumstances. After the date of filing the conference call will be archived and a transcript will be.
Available on our website.
Well what do you have here. Thank you.
Deepak Thank you everybody we want.
Speaker Change: Thank you for joining us today.
Very glad to have you here.
And of course.
You have to issue.
Great to have 2024.
So I'll begin today's earnings call with us.
As it relates to an overview of our quarter results detail so far.
All governments, the demand environment of course, and Dana direction for the coming quarter.
Earlier today.
We reported our numbers to the market and to our board.
I'm pleased to share with you that we're starting to see some healthy indicators for gross.
One.
Our.
It services revenue for the quarter is at the top end of guidance.
Our revenue stands at $2 66 billion.
Reported currency.
We continue to book deals at a healthy pace.
No.
Q3 is typically a shorter well due to the year end holidays.
Although bookings total contract value terms stands at $3.8 billion.
From that how large deals TCE for the quarter was just over $900 million on a year to date basis, it actually shoes.
20% gross.
Speaker Change: We booked 14 deals this quarter in the greater than 30 million <unk> range by comparison, we had 11 of such deals in the third quarter of last year.
Exploring T is on net income for the quarter, where we've expanded.
By one 8% sequentially.
Olive garden margin.
We stood at 16% despite I would say.
He's done all shows.
N D annual salary increases for employees on a year to date basis, our margin actually improved by more than 60 basis points.
As you know we have consistently invested in our people and our processes and organizational efficiencies over the last several quarters.
These investments are paying off we are seeing it every day our results.
Demonstrated that fundamental level, we pro is increasingly.
I would say more streamlined proactive and efficient.
Yeah.
Boosted our clients trusting alkenes this has improved our win rate.
The type of deals we are winning is feasible.
Music, what exactly that is.
More of a complex transformation deals.
We are seeing it probably is not only.
Benefiting from vendor consolidation, but we're also adding new logos.
Why do we are continuing to grow our business with existing clients of course.
In fact, our clients tell me that they are seeing them more confident and United defaults from US one week really.
Averaging the depth.
And the breadth of expertise and diversity inside OUI pro.
Contributions from our acquired firms such as KEPCO, you know rising design. It you know them.
More prominent.
<unk> received.
Looking at the demand environment I'd say the demand environment remains cautious clients are still making conservative investments you are looking.
Looking for efficiency they are.
All focusing on returns on investment then.
You know looking for better optimization, I would say off the existing investments.
But we are seeing some indicators for gross to remember we had called out a possible slowdown in the economy as growth in our consulting business slowed.
We know that when the market turns consulting will be the first time, we have to bounce back.
So with that in mind I'm pleased to share good performance from our consulting business.
KEPCO reporting a double digit sequential growth in order bookings.
The highest in the last few quarters.
Turning to our strategy market units.
Looking at Americas, One first we have recorded a strong quarter for this unit, where we booked.
Actual fallen 14 large deals this quarter.
Revenue in this market grew 2% sequentially led by health care, which grew actually 9% sequentially.
You know America is to market you need.
We continue to see some softness this is you know let's keep in mind. This unit is.
Primarily a <unk> or b, if its high in energy and U T is being.
A large part of these units.
You are seeing still some softness resulting in a 1.3% drop in revenue Q on Q.
That's it.
This strong momentum in order bookings, which in total contract value terms increased 46% sequentially.
In Europe.
We want fallout or you've seen the third quarter. Despite the continuing it couldnt be recast.
These four new transform 80 deals.
Add up to nearly $300 million in bookings.
Does this underscore the success of our strategy in this market.
So having said that revenue from Europe decreased.
At what 0.3% sequentially in Q3.
Across the board, but more specifically you know a strategic market you need to we have worked on and you know we've reported on that regularly we have worked on reducing low margin accounts, while slowly moving towards higher value transformation projects.
So in a manner revenues declined five 4% quarter on quarter.
Whether.
The strategy of pivoting towards higher value business, reflecting the margins.
Daily build into region margin.
Margins rose 240 basis points sequentially.
Self employed 8% this quarter.
The highest in the last six quarters.
And once again, we are seeing consulting, especially kept good rising play a big role in the complex deals we are winning in this market.
To continue this regrow we.
Made some changes to our gross of fees for essentially you know that well.
As the foundational pillars for sales excellent set out by the gross office.
Last two quarters the last.
Two years actually we moved.
Some of the growth of his functions inside of the strategic market units.
Thus, creating uneven tighter integration with D S abuse.
Speaker Change: With this we have reinforced how we nurture large deals in each geography and will respond.
I asked her to changing market needs.
Simultaneously, we continued to streamline operations as the plan will continue to leverage artificial intelligence and automation for efficiency across all functions and business areas.
We've continued to add to that the learning and development and re skilling of our existing tenant base and.
Besides optimizing our pyramid to better serve clients needs.
Multiple initiatives are in place I request Amit.
To share highlights of some of those programs with you today.
What I can say with confidence is that we probably has a better partner for our clients. Today. We are more agile one that is responding to an evolving with all clients and.
Yes.
I mean by the way we also share with you highlights of the work done around account delivery.
Service Excellence.
Really as the centerpiece of our efficiency play and increase the GDP.
We continue to invest in areas that we know are going to remain.
I would say fundamental for our long term success.
And let's start with that people.
Our most valuable assets.
We are aware of our colleagues there are performance based.
Youll salary increases recently as you know the promotion cycle just goes.
And we'd be making the announcements soon.
<unk> continued to strive for them, then offer training and development options and growth opportunities to our employees.
This is critical to why people continue to choose to work with and keep the best two we propose of course.
Returning to work.
More regularly are still a few years off.
Remote work.
Has absolutely helped energize the culture.
And the atmosphere in our offices.
Then there is AI.
We'd be remiss to not share how we are using AI yourself as an organization and for our clients.
AI is now.
Moving from the curiosity and experimentation stage, two becoming vital I was going to say virus as well to business strategy.
In fact, we can confidently say that every long term.
Large deal now has an AI component.
The substantial portion of our clients are looking for us to develop use cases tied to their business goals.
One is to use AI models to drive tangible results.
I use now embedded across most of our existing solutions and offerings.
Nation.
Every business Ninety's working to launch new offerings that are use AI. That's the way. It is at the moment for example.
You can also strike lab business an area, that's particularly hot when it comes to the use of genuine east digital workplace services.
Leveraging <unk> to lighten the load on service desk.
There you go faster and better client services is now part of every RFP in this space.
One of our largest deals in Europe. This quarter is to transform digital workplace services of a multinational telecommunications company.
This will help <unk>.
Improved client satisfaction and reduce operating expenses.
We will actually build an AI powered platform for them that provide service desk on site and remote support services for 100, thousands users and 80000 managed devices across.
240 locations worldwide.
Oh, you mean generally we are seeing strong interest for AI in the automotive and manufacturing industries in particular.
Clients in these industries and want the <unk> to increase productivity in.
The R&D process and exit rate.
New product development.
We as we put enterprise featuring we arent being clients accelerate adoption, we are leveraging wipro as Jenny I framework and studio to develop key assets at all level of D, a stack, including mud as platform solutions.
We will help clients with muddle development performance.
<unk> <unk>.
And of course compliance.
We're also building governance frameworks around the rest of them see Boulder, so stable and a T called AI development.
In fact.
We are working with a global healthcare insurer right now to develop a jam AI powered knowledge research solutions to transform.
Oh, the contact center the goal here is to improve patient experience and operational efficiency.
By cutting the time it takes to analyze healthcare plan documents and response time.
We've also developed a gen AI powered assistant for a fortune 500 investments and insurance firm.
You saw assistant improves quality.
And reduces the times spans in crafting personalized E mail campaigns.
Early results show that.
Very tangible growth in click through conversion rate.
Yeah.
How do you shouldn't lead to those example, I would say that expanding our relationship with strategy partner is a critical part of our <unk> hundred 60 strategy during the basketball too.
Collaborated with Nvidia to help healthcare companies build AI driven strategies products and services.
This partnership with Nvidia.
He is a great differentiator for us given our domain expertise in the healthcare sector.
We are also expanding our partnership with IBM to investing next key new joint solutions built on IBM Watson ex that makes it.
Easier to deploy reliable responsible and sustainable AI solutions.
To do all this in a consistent in an innovative and scalable fashion. We are preparing our workforce. We have now 200000 210000, we bright.
But being trained on AI wanted one skills.
We have now rolled out person that's in our base learning pathways for different roles and functions.
Our goal is.
To actually ensure that everybody wanted to wipro has the skills to fully leverage AI in their everyday work.
AI related client projects.
We are accelerating Jim AI adoption internally as well by integrating the technology across our entire portfolio of platform Dcs, resulting.
Quality and productivity improvements across HR marketing sales operations findings as well as software development and quality engineering and testing.
Our investments in our <unk> hundred 60 ecosystem.
Combined with the strategic value our consulting business brings to clients.
Is the reason we are.
Increasingly the preferred partner for our clients.
So.
We are confident that we have the right vision, we have the right strategy and the right leadership to continue to grow and keep us competitive resilient and ambitious.
Onto our guidance now for the next quarter.
<unk> for a sequential growth of minus one 5% to.
Plus <unk>, 5% in constant currency terms.
<unk>.
Our genes to stay range bound like in the last few quarters.
Now as the market starts to turnaround on the back of our transformation and efficiency play, we expect to see improvements in the coming quarters.
Is that.
I'll turn it over to you <unk> so he's got all your comments.
Thank you Terry.
Hello, everyone.
I will cover some key areas of business transformation and focused programs.
It helped us maintained margins despite the current demand environment.
On the delivery excellence front.
Top priority is to deliver best in class solutions.
Clients.
We now consistently leverage our four global business line model to create the best possible ecosystem to build talent and.
Speaker Change: Delivering innovative solutions to our clients.
This is being supplemented by strong delivery governance.
So investing in the better program management.
By building the delivery leadership Carter.
We're focused training interventions.
AI based assessment.
And Scully for emerging technology trends.
You have a dedicated AI delivery concept.
They find opportunities to infuse AI into our delivery activities.
Speaker Change: Our account delivery executives are absolutely core to the client experience.
Yeah, enabling and empowering these delivery leaders.
Make decisions with a client centric mindset.
They are driving initiatives and solution offerings with an AI first and I wanted to throw approach.
Another area of work has been the restructuring of our low margin businesses.
He had he talked about it briefly especially in the context of our improved performance and not me.
Low margin businesses are being reduced steadily.
Multi pronged action plan.
Speaker Change: Moving on to the operational excellence side.
Speaker Change: Yes. He has spoken of all skill is our biggest currency.
We are working on an end to end process to provide the right skills at the right time at the right cost in the right place.
Speaker Change: We are doing this through an improved forecasting process.
Speaker Change: Active killing through account academies.
Speaker Change: I mean optimization.
Improving our talent supply chain through an AI powered talent marketplace.
Yeah for the optimization automation and strong change management.
Reducing operating costs and optimizing our organization organizational design.
Across all units and geographies.
Which is building an agile reproach becker suited in this dynamic market.
Yeah, heading towards more and more AI based automation internally, resulting in more productivity and better efficiency.
Speaker Change: You talk about how we are taking a ILEC solutions to our clients.
We have a similar rigor for internal facing AI applications.
Speaker Change: Like the AI powered talent marketplace.
So not based learning part of it is for sales and business teams.
Developers engineers and architects.
Speaker Change: Yeah, using AI for simplification of employee user experience as well.
We are aligning our operational structure, skidding academies, and Jen AI capabilities to market demand client expectations.
Speaker Change: And also to the evolving process landscape insight.
We are the one of the biggest customers of our AI T 60 ecosystem.
These transformation programs and margin expansion initiatives are delivering results.
Our goals remain profitable growth.
Speaker Change: Excellent.
And internal capability development.
All leading towards sustainable success.
Speaker Change: Now I will hand, it over to a partner.
Partner: Good evening, everybody this year on a very happy new year.
Partner: The highlight to you our financial performance.
Well I'll tell you in the December 31st 2023, following a quarter of strong execution I think the news at the top end of the guidance range in constant currency terms revenue declined one 7% sequentially in terms of margins as we had called out last quarter, we had steep challenges on.
Partner: The backdrop of a weak demand environment seasonal silos.
Partner: The salary increases for our employees effective for us to say.
I'm pleased to share with you that our margins have remained resilient.
Partner: We executed on two fronts.
Partner: One maximizing our revenue performance.
Realizing savings from structural improvements of pyramid and fixed price productivity.
Partner: Reducing discretionary spend.
On a year to date basis, we've improved our margins by over 60 basis points.
We work on rationalizing our loss picks are looking gotcha.
Partner: In Q3, we have delivered an operating cash flows will fund $76 million.
This is 177% of our net income and highest in the last five quarters.
Partner: Gosh, well that $4 $6 billion and Nick Ashworth at $2 $7 billion, both increased year on year. Despite.
Despite having completed our largest buy back in July.
Partner: Speaking of capital allocation, our board of directors have declared an interim dividend of <unk> one per equity share.
Our net income for the quarter is at INR, $286 9 billion, which is a.
Partner: Increase of one 8% quarter on quarter, our EPS has increased by 2% on quarter on quarter basis.
Despite the weak demand environment. It is heartening to note that on a year to date basis, our EPS has improved by 2.2%.
Speaker Change: Alright, EPS for Q3 and year to date includes a charge that we've taken in our P&L on account of restructuring exercise that we had undergone during the year I would like to confirm that we have completed the restructuring that we wanted to do and do not anticipate surcharges.
In terms of are there any important matrix of our ETR does that 24%, which is in line with what we delivered in Q2 I just continue to be in line with our policy and we've got cheaper and $4 billion.
Finally, I'd like to summarize the guidance for Q4, I stated maturity, we expect revenue from our IP services segment to be in the range of <unk>.
$2.615 billion to two.
0.66, 9 billion this translates to a sequential guidance of minus one 5% plus.
Speaker Change: Plus the one 5% in constant.
With that we'll be happy to take questions.
Speaker Change: Thank you very much.
We will now begin the question and answer session.
Anyone who wishes to ask a question May press star and one on the Dutch don't telephone.
If you wish to remove yourself from the question queue.
Speaker Change: You met the star and two.
Participants are requested to use hence that's why I'm asking a question.
Speaker Change: Yeah.
Ladies and gentlemen, we will make for a moment, while the question U S. Enbridge.
We have our first question from the line of Moshe <unk> from Wedbush Securities. Please go ahead.
Okay. Thank you. Thank you and congrats on a strong result.
Happy New year, Terry two questions for you.
Terry: That's clearly.
Terry: A lot of excitement.
Terry: And bullish and that's in the market about the prospects for the industry for the next six to 12 months.
Some of your perspective looking at visibility in the pipeline.
We know that.
We're headed towards that inflection point.
Maybe you could talk about that and then the second question is on popcorn.
Terry: Clearly you have a very unique asset there maybe can you remind us when you talk about the metrics you know the head count of KEPCO.
Bookings were pretty strong talk a bit about the nature of the work and what what sort of client conversations you're having one year kind of pitching El Paso. Thanks, a lot.
Speaker Change: Okay, great. Thank you for your question, let me try to.
Speaker Change: Address then the first one is.
You know the Seattle, let me.
Rephrase a little bit your.
Oh incremental empty.
Outlook for for.
The service industry let.
Speaker Change: And let me tell you what I, what we see.
What we've seen is that you know first of all although the last few quarters. It has been a market.
Unusually.
Speaker Change:
Uh huh.
I'd say slow and exposed to uncertainty I mean, it was visible in some industries in particular financial services, you know we've seen it with banks.
Speaker Change: Reducing their spend.
Span discretionary spend he's taken it with technologies, who typically where significant.
Particularly spenders before and and and what was the <unk>.
Speaker Change: What we are seeing is I would say we are seeing green shoots we are seeing is set and foremost stabilization and some ways.
Some pick up in discretionary spend that's what we are seeing and I think we are trying to be.
<unk> seen our opt.
Speaker Change: Optimism you know because we want to continue to see more about it right and you know that typically in January February.
Beginning of calendar year are the times, where you know through our interactions with our clients, we get a better feel for you know what will be their budget and what will it be there like they have their priorities.
Speaker Change: So what I would say is you know.
A little early to tell for you know the the next year or do you all soon to to start for us, but I would say you know a little bit of green shoots we've seen hence our ability to hit the top of the guidance.
One.
Element.
Off.
You know major of this improvement.
Speaker Change: The improvement is coming from the performance of our <unk>.
Trucking business and in particular of our Cup business precisely in this industry financial services because.
I mean, one of the most.
Speaker Change: The reduction in discretionary spend in the previous quarters.
Speaker Change: Performance of the team has been really solid in bookings.
During the quarter, that's why we report.
And sharing with you openly.
I want to first want to recognize that you know the choice of you know our our strategy decision to investing.
Speaker Change: Consulting.
Was absolutely critical to our strategy essential team, but we also knew that those all the business that typically.
All the first wanted to slow down when there is a slowdown in the market are also usually among the first wanted to bounce back and you know, let's let's just say.
No. It's you know it's been a stronger performance this quarter I need.
It keeps us you know good optimism for further for the quarters to come.
Speaker Change: You ask about you know type of business I mean, KEPCO is well.
On the business side than it is on the <unk> side, but it's also on the <unk> side right. That's the strengths of KEPCO and it's also because KEPCO I've been working together with our clients and therefore, it really goes from you know all advisory all discussions compliance all the way to driving transformation law.
Speaker Change: Large scale transformation to a technology.
Speaker Change: Implementation, including AI Jennie O I.
Speaker Change: Programs.
Jennie O: So I hope I answered your question Moshe.
Moshe: Yes, thank you very much.
Thank you.
Speaker Change: We have a next question from the line of <unk> Bari from minimal bond equities. Please go ahead.
Yeah. Thanks for the opportunity I want to go back to be kept cool situation. You said that there was a double digit growth in order bookings and capital.
Can you tell us how material the order bookings are because for the quarter you talked about 3.8 billion.
Speaker Change: Oh, the inflow, how much did that would've come from KEPCO and Oh.
If you go to compare the order inflow for cat co in the December quarter, how does this compare with the all time high order inflow number the capital had post acquisition.
Speaker Change: My first question.
Speaker Change:
Speaker Change: Oh Oh.
So Gary a couple of comments one we are not necessarily commenting on you know specifics.
Speaker Change: All of you know every bricks of Allegheny organization. Okay. So all you know.
Speaker Change: Keep that in mind, secondly, I would say you know the governments of KEPCO. He's met the held for the organization right. So in good and bad times KEPCO, He's a key strategy.
Speaker Change: Part of our organization its severity.
Speaker Change: Difficult to compare or I have a meaningful comparison with <unk> when we acquired them because.
Between the day, we acquired them in and now you know KEPCO has grown tremendously. So it's a different business and Certainteed business has changed so not not necessarily able to relate to that I think you know, let's put it that way that has been.
A period, where KEPCO has grown.
Speaker Change: <unk>.
Very rapidly.
It was driving growth for the entire organization I mean, leading growth I would say because everybody was growing then you know in the time of slowdown KEPCO has been a little more exposed and you know today, we are seeing KEPCO.
Speaker Change: Showing signs of a bounce back.
Okay, a couple of follow up questions on capital.
Was the growth in article broad based across your videos be if it's a client. It was the very specific two buckets within <unk>. That's question number. One second question is for $1 of consulting what is the typical downstream dollars that you kind of get from capital.
Yeah, that's right. So the first question. So the first question I would say is.
The growth is real.
Speaker Change: Base right its not its not like Theres been a one account bump or anything it's it's it's broadbased. Okay. So your first question is.
Yeah. This is my answer the second one is you know the Polish what we call the puna through right consulting should lead to you know, it's not always easy to track, but you can expect easily five to six X you know the consulting business. That's what we are seeing with <unk>.
A lot of you know the projects we sign and then does the reason why.
Difficult to answer Gary shoes, because there's an evolution of an account development strategy over time, and so you know when you look at the cycle lifecycle of an account development. You know there will be a time, where there will be a larger component of consulting in some moment theres going to be.
Smaller versus the different type of services and that's you know we are we are observing this but the poor showing significant that's for sure.
Okay. Thank you.
Thank you.
We have a next question from the line of CBS <unk>, Some code that money into asset management. Please go ahead.
Yeah. Thanks, Hi theory, yes, one question.
In Q3 ended up towards the higher end up our guidance and you're calling out green shoots of recovery in consulting segment.
Particularly march quarter. It has not been so back photos in terms of seasonality and what that might look like or something I mean your weakness.
It looks mathematically it would've been.
Backdrop, Blackstone, how can it inside and outside of guidance 911, and half a cent decline. So are we being a little conservative yet to keep buffalo for any potential shocks or is there any revenue impact through the restructuring of the low margin business that we spoke about.
So Dan this is.
This is the nature of you know our guidance to give a bracket. So that you know that they are you know because.
The reality is that you know we are still in the market, where you know there's no sinks are happening in up and down and you know this we need to see how this.
Oh quarter tons, but I think you know.
This guidance is sharing it.
I would say a cautious level of optimism.
No I was just surprised us to the lower end here in place.
Remember that we did in December quarter, which is typically a very weak seasonally and this time around almost everybody has seen higher than expected credit loss.
So I was just under trying to understand how you arrived at that base case scenario is there anything specific that you're looking at.
Or just the light band that you want.
Well, if I'm not shrunk so do you actually the lower Handoffs all guidance equaled the top end of the guidance of the previous quarter. So it shows a trend.
Okay. Thank you so much.
Thanks, Mike.
Thank you.
We have a next question from the line of Alicia Kumar from JM Financial. Please go ahead.
Hi, Thanks for taking my question Danny last few quarters.
Been challenged by some other project cancellations.
Now are you seeing signs of stabilization.
Is the leakage and reduced to 11, then the incoming revenue from all the D. C and one is that at the end of it.
Seed Oh, it is leaking out and therefore.
Yeah.
Incrementally there should be growth.
Is that kind of understanding.
[laughter].
If we look at all governments on bookings and therefore, our ability to close deals in the market. It continues to be a rather good. Okay. So the cell specimens says never stopped to be pretty good I mean, the performance over the last three quarters I know, we know that through those you know well performance in sales are in particular with.
If he can volume of large deals you know this will definitely increase our backlog for the quarters to come okay.
What was hurting our gross was the discretionary spend so typically the smaller type of projects, but which you know.
In large volume was contributing to revenue growth.
You know in this context, that's that's why you've seen that indeed with.
No.
Now being able to show growth over the last quarters.
We are seeing.
A little bit of a.
Probably it is significant I would say oh.
And I don't know how do you see you saw at the end of the.
And of the dislocation always been or actually a slight pick up other discretionary spend but that's where we are seeing and it'll be toughing version of the app to try and for sure.
Okay. That's helpful and maybe a next question's on margin maybe on the media and Tom you know we have done a tremendous job in.
Next thing I imagine despite revenues.
Revenues in Virginia.
As growth comes back you know how are we looking at how should we look at margins over the medium term.
Got.
Should we go back to.
Maybe if we can kind of margin level.
Any color on the modern trade.
Okay.
All reflect a little bit on your question and then I'll ask I found.
I'll now to build on.
Our or to take these points more more specifics what I would say is that for sure.
It was important to us to show that through our actions around our.
Efficiency productivity.
Automation.
Process improvements all of that deep deep.
At TVT inside your organization.
The objective was to build a certain level of resilience.
Of our margin profile.
Indeed.
We have launched this actions.
You know a few years ago at the time, where we need to know the market would slow down actually this market slowdown has been a proof point.
Oh that our resiliency has improved tremendously over the last quarters. Indeed, you say it.
You know despite.
This slowdown despite you know the lack of growth. Despite you know salary increase.
You know I.
MSR to our employees.
Being able to hold our margin. So it gives us certainly a certain level of confidence that we use the gross.
We will be able to.
Oh, you imagine expansion.
Hello.
Yeah.
So just to add to what you said a theory that.
When they go to Don obviously, you will see an uptick in the margins.
But you also need to remind ourselves that we need to also invest for growth.
That will also remain a key agenda fought off what I.
See I need we need to continue to invest in our people and processes.
And.
Therefore, yes, David is an expansion possible with returning volt.
But a little less than truckload.
Sure.
And good luck.
Thank you.
Thank you.
Before we take the next question would like to remind participants to press star one to ask a question.
We'll take our next question from the line of monarch Danijel from Axis capital. Please go ahead.
Mr Denis Joe.
Please on mute your line.
Yeah.
Since there is no response, we'll move on to the next question from the line of DB from MK Global. Please go ahead.
Yeah. Thanks for the opportunity question first of all do you in your prepared remark you indicated you knew where demand remain.
Hey, Lee.
But if I look over performance for the last couple of quarters, and you remain weak or at least some sequential growth perspective, and you knew where you used to have a significant capability compared to some of our peers.
<unk> got some sense of road and most of your peers. So far indicated your India is one of the resilient vertical from a demand perspective.
If again gorged I'm, saying, Oh, how one should look newmont reject people are <unk>.
And secondly is on menu pick Judy.
Is it getting remain weak for some time.
And otherwise mainly vacating is doing a strong demand arent makes sense for you to help us understand steps, you're taking to explain what it capability landscape in manufacturing and I want to look at from a medium term perspective. Thank you.
Understood. Thank you Deepa. So you know I you know first of all what I always caution a little bit any.
Conclusion tour, a pretty drawn by you know looking at a.
Q on Q performance on our own.
Even in our sector because sometimes you know it's just you know it happens that union account or email.
Geographically one one.
Even test is slightly impacting the picture what I would say is looking at and U S.
And manufacturing so Ian you.
He was actually a reasonably good market. It's a place where you know there is a significant investment whether it's on the engineering side on the it side.
Hum.
Significant investment made on AI.
Hey, a J.
As well.
So you know that's a market where you know we are expecting to see a gross.
For us manufacturing.
You said, it's it's it's been mixed over the last few quarters, but this particular I'll leave for example, if I look at my TV is an area, where there's significant investments we are really.
Making significant.
The roads in this.
Industry in particular.
Through our investments with its own you know around the yen.
Alright.
Car cloud cloud business, our it was always on the numbers on you know automation and so on this there's a lot that we've been doing and we will see growth over the next two quarters for sure.
Yeah.
Well I'm looking.
Yes, sorry, I'm looking slightly medium term perspective listen when you pick things look great from size perspective part of it is six 7% was okay with you.
Oh 67 person, Missouri that you believe you did reflective of the market opportunity already using it to change over the next three or four years and if it is likely to change.
Which area, we are investing to drive that change.
You know I.
[laughter].
You asked me now to look at the Crystal ball right until you what's going to be the growth in the next four years in this industry.
It's hard to tell what I can tell you that I certainly wanted us to invest in D. N G N U T CS as well as EV manufacturing sectors. Those are two key sectors, while we grow and you know we have.
<unk>, we are working with large clients and we will continue to do so.
Thanks.
Thank you.
Ladies and gentlemen to ask a question. Please press star and one on your phone now.
Yeah.
Okay.
Yeah.
We have a question from the line of.
<unk> from <unk> capital. Please go ahead.
Alright, thanks funnel Fortunately.
A couple of questions. Firstly, just wanted to understand.
When can you just talk to that.
Nick.
So now that you had expected.
Come back maybe in the medium term.
That's good.
Supply from the next quarter.
Okay.
So.
Bob do you want to take that one.
Okay.
Yeah.
The entire supply chain.
The lower attrition.
Head space for higher utilization.
We have enough talent available.
For certain specific schools, which we regret we will continue to hire through the current environment, we feel that it's.
But from a supplies and there'll be a constraint.
<unk> picks up one of the quarters.
If you look at adding.
And more bigger number.
Yeah.
Sure Secondly, if there's any.
Hum.
So in terms of the mix new versus existing.
Hum net new versus when you were so.
We are not communicating this information but.
What I can say is that if we look at the large deals actually.
Hum.
The majority.
Majority isn't it.
Sure.
Mexico.
Thank you.
Ladies and gentlemen that was the last question for today I would now like to hand, the conference back to Mr Depot boarder for closing comments over to yourself.
Thank you all for joining the call. If you have any further questions. Please feel to reach out to reach out to Investor Relations team.
Have a nice day.
Thank you on behalf of them.
Yeah.
On behalf of Wipro limited that concludes this conference. Thank you for joining US and you may now disconnect your lines.
Thank you.