Q4 2024 Wipro Ltd Earnings Call
Yeah.
Yeah.
Operator: Ladies and gentlemen, good day and welcome to Wipro Ltd's Q4 FY24 earnings conference 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 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dipak Bohra, Senior Vice President, Corporate Treasurer, and Investor Relations. Thank you, and over to you, sir.
Speaker Change: Ladies and gentlemen, and welcome to return limited Q4, FY 'twenty earnings Conference call.
Speaker Change: As a reminder, all participant lines will be the listen only mode.
Speaker Change: And they've had been opportunity for you to ask questions. After the presentation concludes.
Speaker Change: Should you need assistance during the conference call. Please see the melanoma data.
Speaker Change: Fishing starch, then brito on you touched on food.
Speaker Change: Please note that this conference is being recorded.
Speaker Change: I know that under gone from selected Mr. Braga Senior Vice President corporate Treasurer, and Investor Relations. Thank you and over to you Sir.
Dipak Kumar Bohra: Thank you, Yashashree. A warm welcome to our quarter four financial results.
Speaker Change: Thank you Sri.
Speaker Change: What might come to a waterfall.
Dipak Kumar Bohra: We will begin the call with business highlights and an overview by Mr. Srinivas Valia, our Chief Executive Officer and Managing Director, followed by Updates on Financial Overview by our CFO Aparna Iyer
Speaker Change: Before on these calls.
Speaker Change: We will begin the call with the business highlights and overview by Mr. <unk>.
You asked about our Chief Executive Officer, and managing director.
Speaker Change: So all of that.
Speaker Change: When you buy a CFO, but not yet.
Dipak Kumar Bohra: Afterward, the operator will open the bridge for Q&A with our management team.
Speaker Change: Uh huh.
Speaker Change: After the operator will open the bridge for Q&A with our management team in.
Dipak Kumar Bohra: Our CHR, Mr. Saurabh Govil, on the call.
In this call. We also have all the CH out of Mr. Sato will end the call.
Dipak Kumar Bohra: Let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations.
Speaker Change: It was really start let me draw your attention to the fact that during this call.
We may make.
Speaker Change: Forward looking statements within the meaning of private Securities Litigation Reform Act 90 95.
Speaker Change: These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause actual results to differ materially from those expected.
Dipak Kumar Bohra: Uncertainties and Risks, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in the following slide.
Speaker Change: Risk factors are explained in detail filing with the FCC.
Dipak Kumar Bohra: Wipro does not undertake any obligation to update the forward-looking statements 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. With that, I would like to hand over the call to Srini. Thank you.
Speaker Change: The program does not undertake any obligation to update the forward looking statements to reflect events since outcome sciences. After the data. Finally this conference call will be archived and a transcript will be available on our website.
Speaker Change: With that I would like to hand over to Sidney Thank.
Unknown Executive: Thank you. Thank you, Siddharth. Thank you, Deepak. Good evening and good morning, everyone.
Sidney: Thank you. Thank you.
Sidney Thank: Thank you Deepak.
Sidney Thank: Good evening and good morning, everyone.
Unknown Executive: Thank you for being here today. I am honoured to be here as the CEO of this remarkable organization. My memories of joining Wipro in February 1992, straight from the Indian soft science campus, are still fresh in my mind.
Sidney Thank: Thank you for being here today.
Sidney Thank: I'm honored to be here as a fuel.
Sidney Thank: Remarkable organization.
Sidney Thank: My memories of joining the pool in February 1992.
Sidney Thank: The street didn't stop signs campus.
Sidney Thank: Fresh in my mind.
Unknown Executive: I've been with Wipro for more than 30 years, and I am proud to say that it is such a unique company. The rate has combined profits with purpose.
Sidney Thank: I couldn't be more than 50 years.
Sidney Thank: I hope to see that it's such a unique company.
Sidney Thank: He has combined profits and purpose.
Unknown Executive: Very strong global brand present in over 60 countries, leading in technology and committed to sustainability, diversity, and inclusivity. As you know, I've been in the CEO's role for about two weeks now, through internal and external conversations, and the press reports I've read. I am aware of the high expectations for my role. Despite my extensive experience as a business leader, Stepping into the CEO's role for the first time. Fields Profound.
Sidney Thank: It's been a strong global brand President you know what 60 countries.
Sidney Thank: <unk> technology can be tricky.
Sidney Thank: Sustainability diversity and inclusivity.
Speaker Change: As you know I've been in the CEO role for about two weeks now.
Speaker Change: For internal and external conversations and the press reports outbreak.
Speaker Change: I have a read of the high expectation well my gold.
Speaker Change: Yeah.
Speaker Change: Despite my extensive experience as a business leader.
Speaker Change: Speaking to the Seahorse roll for the first time, Phil Praful.
Unknown Executive: Especially when it comes to leading this ICONIC INSTITUTIONS. As I go through the many emotions of this transition, one thing stays strong. My unwavering belief in Wipro. All values, all people, all clients, and, of all, our resilience. Last year posed big challenges for the whole industry, and it affected Wipro's performance too.
Speaker Change: Especially when it comes to leading this.
Speaker Change: Iconic institution.
Speaker Change: As I go through the many more ships of this transition one thing stay strong.
Speaker Change: My unwavering belief in April.
Speaker Change: Oh glad you ask people.
Speaker Change: Clients and.
Speaker Change: All.
Our resilience.
Speaker Change: Okay.
Speaker Change: Last year.
Speaker Change: Big challenges for the whole industry.
Speaker Change: It has affected recruiting performance too.
Unknown Executive: The economic environment is still uncertain, and there might be more challenges in the short term. But the opportunity before us is limitless. We are on the brink of a major technological shift across all industries, to shape the future of their business. And at Wipro, we have been gearing up for this moment. We have made substantial investments to strengthen our capabilities across the organization. We have a global and diverse team.
Speaker Change: The economic environment is still uncertain.
Speaker Change: And it might be more challenges in the short term.
Speaker Change: However.
The opportunity before us is limitless.
Speaker Change: Yeah.
Speaker Change: On the brink of a major technological shift.
Speaker Change: Every time I talk to.
Speaker Change: Across all industries.
Speaker Change: Zero two live rich yeah.
Speaker Change: To shape the future of their business.
Speaker Change: And then to withdrawal you have been getting up for this moment.
Speaker Change: We have made substantial investments to strengthen our capabilities.
Speaker Change: Across the organization.
Speaker Change: We have a global and diverse team.
Unknown Executive: We have made bold moves in M&A, acquiring companies like Capco and Rising, and we have simplified our operating model. The building blocks are firmly in place, and I am committed to expanding on this even more. Why do I remain optimistic about the long term? It's important to be transparent.
Speaker Change: Yeah.
Mindy: And then Mindy.
Mindy: Companies like KEPCO and pricing.
Mindy: Michelle will sit up consulting capabilities.
Mindy: And we have simplified our offering.
Mindy: Martin.
Mindy: The building blocks are firmly in place.
Mindy: Committed to it.
Mindy: Spending on this even more.
Mindy: Why I remain optimistic about the long term.
Mindy: It's important to be transparent.
Unknown Executive: There is still a considerable amount of work ahead of us. Our immediate priority is to accelerate growth. Before diving into the financial performance for Q4 and the Puliyer, I want to discuss the five focus areas we will concentrate on to revitalize the company.
Mindy: There's still considerable book I heard of us.
Mindy: Our immediate priority is to accelerate growth.
Mindy: Before diving into the financial performance for Q4.
Mindy: And the full year.
Mindy: I wanted to just because the five focus areas we will concentrate.
Mindy: To revitalize the company.
Mindy: One.
Unknown Executive: Accelerate large-scale momentum by working closely with clients and partners to strengthen relationships with large clients and partners and further invest in accounts that have the potential to grow into large accounts. Focus on Industry Specific Offerings and Business Solutions, led by consulting and infused with AI. We will continue to build talent at scale, which is now AI-ready and able to deliver industry-specific business solutions. And finally... Continue to simplify our operating model and focus on execution rigor with speed. As you see, the core tenets of our strategy remain unchanged. What's important?
Mindy: I feel great large deal momentum, while working closely with clients and partners.
Mindy: To.
Mindy: Strengthened relationships with large clients and partners.
Mindy: Further invest in a phone that has a potential to grow into larger accounts.
Mindy: Great.
Mindy: Focus on industry specific offerings and business solutions.
Mindy: Next like uncertainty.
Mindy: Infused with yet.
Mindy: Paul.
Mindy: He will continue to build talent at scale.
Mindy: No, yeah, I ready and able to deliver industry specific solutions.
Mindy: And finally.
Mindy: Continued to simplify our operating model and focus on execution to be good with speed.
Mindy: As you see.
Mindy: And then so forth strategy remain unchanged.
Mindy: What's important.
Unknown Executive: is how we build on these five priorities and others, as necessary, to accommodate technological shifts and market conditions. My years of experience in the markets have taught me that integrating strategy with rigorous execution yields tangible results. And that's where our focus will remain this year.
Mindy: He's hope we'd built on these five priorities.
Mindy: Yeah.
Mindy: As necessary.
Mindy: To accommodate technological shifts and market condition.
Mindy: My years of experience in the markets has taught me that integrating strategy with rigorous execution tangible.
Mindy: Tangible results.
Mindy: And that's the way I'll focus the remainder of this year.
No.
Unknown Executive: Let me turn to our financial performance for Q4 and the financial year ending March 2024. In Q4, our IT Services Revenue Group sequentially, if you recall. Last quarter, we had talked about seeing green shoots in our consulting business. The traction continued in quarter four.
Mindy: <unk> financial performance for quarter four.
Mindy: And the financial year, ending March 30 critical.
Yeah.
Mindy: In Q4.
Mindy: Nike Services' revenue grew sequentially.
Mindy: One 1% in reported currency.
Mindy: It's really cool.
Mindy: Last quarter, you talked about seeing green shoots.
Mindy: Consulting business.
Mindy: The traction continued in quarter four.
Unknown Executive: Reflected in Capco's sequential revenue growing by 6.6% and order bookings growing by 43.6% Now talking of order bookings, in quarter 4, total auto booking stood at $3.6 billion, and for the full year. It was $14.9 billion. Coming to large, In Q4, we won 18 large deals against 14 large deals in the previous quarter. In TCV terms, our large deal bookings for Q4 were $1.2 billion, and for financial year 2024, we recorded large deal bookings TCB of $4.6 billion. This was a growth of 17.4% as compared to the previous year. For FY24, our revenue was $10.8 billion in reported currency.
Mindy: Reflected in cap goes sequential revenue.
Mindy: Growing by $6 six books, Inc, and.
Mindy: Order bookings growing by 40 people six blissett.
Mindy: We're talking of order bookings in quarter four.
Mindy: Total order bookings stood at $3 $6 billion.
Mindy: And for the full year.
Mindy: It was $14 $9 billion.
Speaker Change: I think the large deals in Q4, we've won 18 large large scale against.
Speaker Change: 14 large deals in the previous quarter.
Speaker Change: And do you see victims on large deal bookings for quarter, four was $1 $2 billion.
Speaker Change: For financial year, 'twenty 'twenty four.
Speaker Change: Vijay Kotte large deal bookings D C V for $4 $6 billion.
Speaker Change: This was a growth of 17, 4%.
Speaker Change: Basically the previous year.
Speaker Change: Florida.
Speaker Change: Excuse me totally effect 24, our revenue was $10.8 billion.
Speaker Change: People get currency.
Unknown Executive: We continue to increase the percentage of revenue from our top 5 and top 10 clients. Also, we have three more clients. There is a hundred million plus dollar plus revenue bracket in FY24.
Speaker Change: We continued to increase the percentage of revenue.
From a top five and top 10 clients.
Speaker Change: Also we added three more clients.
Speaker Change: It's 100 million dollar package in their fight pretty full.
Unknown Executive: 6 out of our top 10 accounts, crew on a sequential as well as on a year-on basis in quarter four. Moving on to margins in quarter four, we saw a further expansion to 16.4%. This is a 40 basis points improvement over last quarter. We closed FY24 with a margin of 16.1%.
Speaker Change: Our top 10 accounts grew on a sequential as well as one of your own business in quarter four.
Speaker Change: Moving on to margins.
Speaker Change: Waterfall.
Speaker Change: We saw a further expansion to 16 point full plastic.
Speaker Change: This is a 40 basis point improvement over last quarter.
Because it was like 34 with a margin of 16, 1%.
Unknown Executive: An expansion of 50 basis points over FY23. Like I said earlier, we will continue to make investments in building capabilities and Strategic Acquisition. In Q4, we took a majority share in Admin, a leading consulting and managed services company serving the insurance and insurtech industry. This allows us to strengthen our value proposition in a fast-growing part of the insurance vertical. Expanding on our substantial investment in AI, in Kuala Lumpur, we launched the Wipro Enterprise AI-ready platform with IBM.
An expansion of <unk>.
Speaker Change: 50 basis points or 23.
Speaker Change: Like I said earlier, we will continue to make investments in building capabilities.
Speaker Change: And strategic acquisitions.
Speaker Change: In Q4, we took a majority share in acne.
Speaker Change: <unk> consulting and managed to managed services company, serving the incidents and ensure pick industry.
Speaker Change: This allows us to strengthen our value proposition.
Speaker Change: The fast growing part of the insurance vertical.
Speaker Change: Expanding on our substantial investments in yeah.
Speaker Change: In quarter four.
Speaker Change: We launched our Wipro enterprise artificial intelligence really platform with IBM.
Unknown Executive: It's a new service that will allow clients to create enterprise-level, fully integrated, and customized AI environments. Let me share one example of a win in quarter four that came from an AI powered solution tailored to our consumer business. A leading global apparel brand chose Wipro as its strategic partner to implement Gen-AI solutions for driving. The Digital Transformation actually involves... Large Language Models to Improve Search Recommendation Engines and enable hyper-personalization at scale.
Speaker Change: If a new service.
Speaker Change: Clients to create enterprise level fully integrated and customized environment.
Speaker Change: Let me share. One example of a win in quarter four that came from an.
Speaker Change: Yes, Paul its solution tailored to our consumer business.
Speaker Change: A leading global apparel brands.
Speaker Change: Zero.
Speaker Change: I was at a strategic partner.
Speaker Change: Implement generic solutions.
Speaker Change: What's driving.
Their digital transformation.
Speaker Change: It's actually it was.
Speaker Change: T.
Speaker Change: No its language models doing.
Speaker Change: Through search and recommendation engines.
Speaker Change: And it will hypo plus amortization ex killed.
Unknown Executive: All done responsibly. Before I hand it over to Aparna, let me share our guidance for Q1. We are guiding for sequential growth of minus 1.5% to plus 0.5% in constant currency for Q1 2025.
Speaker Change: All done responsibly.
Speaker Change: Before I hand, you go with a partner like we shared our guidance walk.
Speaker Change: Q1.
Speaker Change: We are guiding for a sequential growth of minus one 5% to plus one 5% in constant currency for Q1 pretty funny.
Unknown Executive: We expect margins. Staying range-bound, like in the last few quarters, for the next few months, will be crucial as we steer the company towards growth. As a passionate hiker, I deeply connect with these words. From Zunko Tave, the first woman to climb Mount Everest. She said, even if it's hard. You can reach the peak, is your client step-by-step.
Speaker Change: We expect margins.
Speaker Change: <unk> baseball like in the last two quarters.
Speaker Change: The next few months.
Speaker Change: It will be commercialized, we steer the company towards growth.
Speaker Change: Is it faster I could.
Speaker Change: Deeply connected with these books.
Speaker Change: From zoom cool that'd be the first two months, but most of it is.
Speaker Change: She said you've already Chris Hogg Mackenzie.
Speaker Change: Because it's the peak.
Speaker Change: If you step by step.
Unknown Executive: Of course, I seek the trust and continued support of all of you, our clients, our Associates, Partners, and the media as we move forward. Thank you. Let me now hand it over to Aparna to share more details on our financial performance.
Speaker Change: Of course, I take their trust and continued support of all of you.
Speaker Change: Our clients.
Speaker Change: All of that field associates partners and media as we move forward.
Speaker Change: Thank you.
Speaker Change: Let me know how did it go up but not to share more details.
Speaker Change: All financial performance, what do you open them.
Speaker Change: Thank you Jamie.
Aparna Iyer: Good evening and good morning everyone. Let me highlight to you our financial performance for Q4 and the full year ending March 31, 2024. On IT services revenue for Q4, we delivered a reported currency growth of 0.1% sequentially and minus 0.3% in constant currency. For the financial year 2024, IT services revenue declined 3.8% year-on-year in reported currency terms and 4.4% year-on-year in constant currency.
Jamie: And good morning, everyone. Let me highlight to you our financial performance for Q4 and full year ending March 31st 2024.
Speaker Change: On IP services revenue for Q4, we delivered as reported currency growth of 0.1% sequentially and minus needlepoint, 3% in constant currency.
Speaker Change: For the full year for the financial year 'twenty full IP services revenue declined <unk>, 8% year on year and reported currency.
And four 4% year on year and comes from current and future needs.
Aparna Iyer: Let me also give you some color on our market unit performance. Please note that all revenue growth numbers are in constant currency terms, in America. We continued our momentum of strong booking in Q4. We booked eight large deals in Q4, adding up to a total contract value of 587 million.
Speaker Change: Let me also give you some color one on market or any performance. Please note that all revenue growth numbers are in constant currency.
Speaker Change: In Americas, we continued our momentum with strong booking in Q4, we booked eight large deals in Q4, adding up to a total contract value of 587 million.
Aparna Iyer: For the full year, order bookings in TCV terms in A1 grew by 24.9%. Quarter 4 revenue for this market declined 1.8% on a sequential basis, while the full year revenues grew 0.2% year-on-year. In a 524, you're on mute.
Speaker Change: Do you see other bookings in PCB terms any one grew by 24, 9%.
Speaker Change: Quarter four revenue for this market declined one 8% on sequential basis full year revenues grew 0.2% year on year.
Speaker Change: No sector grew by 18% and full year.
Speaker Change: And if I forget on Yahoo.
Aparna Iyer: America's true market unit grew 1.9% quarter-on-quarter on the back of strong performance in Capco, BFSI, Hitech, and Canadasex. However, on a full-year basis, revenue in this market declined by 6.1% year-on-year. Almost 60% of our revenues in this market come from the BFSI sector, and as Srini mentioned in his speech, we are starting to see a return to stability in the sector, led by cash, in Europe. However, revenue decreased 0.1% sequentially in Q4 and decreased by 7% on a full year basis.
Speaker Change: And then it goes to market unit grew one 9% quarter on quarter on the back of strong performance and capital B exercise they can turn that affect us.
Speaker Change: On a full year basis the revenue in this market declined by six 1% yet on yeah, almost 60% of our revenues in this market comes from to be emphasized Victor Lund Ashish you mentioned in your speech, we are starting to see a return to stability in the sector led by topical.
In Europe.
Speaker Change: Revenue decreased 1% sequentially in Q4 and decreased by 7% on a full year basis.
Aparna Iyer: While Germany and the UK continue to remain impacted due to the slowdown in demand, we are seeing a recovery in sectors like Switzerland and Southern Europe, which grew 1.7 and 1.6% in Q4. Southern Europe, as a sector, grew 14.6% year-on-year in FY21.
Speaker Change: Germany and UK continued to remain impacted you the slowdown in demand environment, you are seeing a recovery in sectors like food the living in Southern Europe grew one seven and 1006 the same thing careful.
Speaker Change: Southern Europe actually affect DAU grew 46% year on year, and if I grateful.
Aparna Iyer: We also continue to see strong traction on the order booking side in Europe. In Q4, we want, All these five large deals are adding to a TCV of more than $300 million. ACMEA revenues declined 2.2% quarter on quarter and 4.5% for the full year.
Speaker Change: We also continue to see strong traction on the order booking freight in Europe in Q4, we won.
Speaker Change: Large deals and adding to a D C D of more than 300 million Thomas.
Speaker Change: Revenue declined 2.2% quarter on quarter and full 0.5% for the full year.
Aparna Iyer: Our strategy in APMEA has to be... has been to move towards high value. Through transformation projects and reduced low margin accounts, the success of our strategy is reflected in our margin improvement of 235 basis points for the full year. In terms of IT services operating margins, our continued rigor on improving operational excellence has helped us expand our operating margins by 40 basis points in Q4.
Speaker Change: Our strategy has to be.
Speaker Change: Has been to move towards high value.
Speaker Change: Transformation projects and reduce low margin accounts reflects yourself on strategy is reflected in our margin improvement of 235 basis points for the full year.
In terms of IP services operating margins, our continued Google on improving operational excellence.
Speaker Change: So it does expand our operating margins by 40 basis points. In Q4. This is after absorbing the impact of two additional months of salary increase in Q4.
Aparna Iyer: This is after absorbing the impact of two additional months of salary increases in Q4. On a full year basis, our margins are at 16.1%, and they've improved by 50 basis points year-on-year. Our net income and EPS for the quarter increased by 5.2%. Despite being impacted by a challenging macroeconomic environment, it is encouraging to note that our EPS for the full year grew by 0.8%. The increase in EPS was after absorbing the one-time restructuring charges of INR 6.8 billion during the year.
Speaker Change: On a full year basis, our margins.
Speaker Change: And at 16, five 1% improved by 50 basis points year on year.
Speaker Change: Yeah.
Speaker Change: Our net income and EPS for the quarter increased by five 2% despite being impacted by the challenging macroeconomic environment. It is encouraging to note that our EPS for the full year grew by 0.8 per se.
Speaker Change: The increase in EPS was after absorbing the one time restructuring charges. So far are not $6 8 billion. During the year, we generated cash flow of $626 million in Q4, and 2.1 billion fog.
Aparna Iyer: We generated cash flow of $626 million in Q4 and $2.1 billion for... the full year, which is 182.6% of our net income in Q4 and 159% of our net income on a full year basis. This is our highest cash flow in recent years. Our gross cash, as a result, is at $4.9 billion, and net cash was at $3.2 billion. Both have increased year-on-year despite completing our largest buy-back in July of 2020.
Speaker Change: The full year, which is at 182, 6% of our net income in Q4 and 159% of our net income on a full year basis. This is our highest cash flow in recent years.
Speaker Change: Golf cash as a result is that $4 $9 billion of net cash or debt cheap on duplicate.
Speaker Change: Both have increased yard on yard despite completing our largest buyback.
Speaker Change: In July of 2022.
Aparna Iyer: In terms of some other important metrics that we've always shared, our ETR is at 24.5% for FY24, and it was 23% in FY23. Our hedges continue to be in line with our policy. We had about 3.1 billion of forex derivative contracts as hedges at the end of Q4.
Speaker Change: In terms of some other important metrics that we've already shared our ETR was 24, 5% for the FY 'twenty for.
Speaker Change: Well it was 23% in FY 'twenty two.
Speaker Change: Hey, just continue to be in line with our policy, we had about <unk>. One 1 billion of Forex data would give contracts actually just at the end of Q4.
Aparna Iyer: Finally, I would like to reiterate the guidance for Q125 stated by Srini; we expect our revenues from the IT services business segment to be in the range of 2.617 billion to 2.670 billion dollars. This translates through a sequential guidance of minus 1.5 percent sequential to plus 0.5% in constant currency terms. With that, I now hand over. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2.
Speaker Change: Finally, I would like to reiterate the guidance for Q1 'twenty five stated by Xiaomi, We expect our revenues from Ids services business segment to be in the range of.
Speaker Change: Okay.
Speaker Change: 2.617 billion to $2.670 billion. This translates to a sequential guidance of minus one 5% sequentially.
Speaker Change: 0.5% in constant currency.
Speaker Change: With that I will now handle well.
Speaker Change: To the operator for questions.
Speaker Change: Thank you very much we will now begin the question and answer session.
Speaker Change: Anyone who wishes to ask a question May play star and one on that touched on telephone.
Speaker Change: If you wish to remove yourself from the question queue, you might get stock and two.
Operator: Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We will take our first question from the line of Moshe Katri from Redbush Securities. Please go ahead. Mr. Moshe Katri, your line is unmuted. Can you go ahead with your question, please? Hey, sorry about that.
Participants are requested to use handsets on asking a question.
Speaker Change: Ladies and gentlemen, we will wait for a moment for any questions you assemblies.
Speaker Change: Yeah.
Speaker Change: We'll take our first question from the line of Moshe the three from the Bush Securities. Please go ahead.
Moshe: Mr. <unk>. Your line is on mute kidney go ahead with your question. Please.
Moshe: Hey, sorry about that.
Unknown Attendee: Attorney, congratulations on your new role. I'm sorry, we are not able to hear you clearly. Can you hear me now?
Moshe: Is there any congratulations on your on your walls.
Speaker Change: I'm sorry, you were not able to hear you clearly.
Moshe: Can you hear me now that better yes. Please go ahead perfect. It looks like it's certainly congrats on your you're all here I'm looking at the five focus areas that you mentioned you know I'm I'm Gonna look maybe at three of them.
Unknown Attendee: Is that better? Perfect. Perfect. Surendra, congrats on your role here.
Moshe Katri: Looking at the five focus areas that you mentioned, you know, I'm going to look maybe at three of them, large deal momentum. What needs to get done to get there? Are you talking about restructuring sales? Sector-specific offerings led by consulting and AI. Are we talking about more strategically using Capco given their expertise, and then you talk about simplifying the operating model. Are we planning a restructuring in terms of the various segments of the business?
Moshe: Large deal momentum what needs to get done to get there or you're talking about restructuring sales.
Moshe: Sector specific offerings led by consulting and AI are we talking about more strategically using capital given their expertise and then you talked about simplifying the operating model are we planning a restructuring in terms of the various segments of the business.
Unknown Executive: Thank you, Moshe. I appreciate your question.
Speaker Change: Thank you Marcia well I appreciate the question.
Unknown Executive: Let me answer in terms of the structure and operating model. I said we would continue to simplify our operating model, but the focus will actually be more on execution rigor and with speed. That was the key message, Moshe. Now, coming to the large deals, we want to create this large deal momentum, and one of the things that we want to do is be more proactive with our clients and with our partners.
Let me answer the <unk>.
Speaker Change: So the structure and operating model.
Speaker Change: Third we will continue to simplify our operating model, but the focus actually will be more on the execution would be good and with speed.
That was the key message of motion now coming to the large deals we want to create this large deal momentum under one of the things that we want to do is be more proactive with our clients and with our partners and us.
Unknown Executive: And the second part of the question that you said is, you know, we want to go very specific with the specific business solutions, both on the cost transformation side and also the business transformation side, which is a lot more industry focused, with consulting led and AI infused. I think that's how we want to differentiate our large deals going forward.
Speaker Change: And part of the question that you said is it all you want to go very specific with a specific business solutions. Both on the cost transformation side and also on the business transformation side, which is a lot more industry focused consulting led.
Speaker Change: Yeah infused I think that's all we wanted to differentiate our large deals going forward.
Moshe Katri: Okay, and then final question here. Can you talk a bit about how you're planning to use Capco? I think you have a very unique asset that Wipro has not leveraged efficiently enough in the past since the transaction. So what's going to be different here under your leadership than Wipro with Capco down the road?
Speaker Change: Okay, and then a final question here.
Speaker Change: Could you talk.
Speaker Change: Talk a bit about how you're planning to use capital I think you have a very unique asset.
Speaker Change: Wipro has not leverage efficiently enough in the past since that transaction, so what's gonna be different here under your leadership.
Speaker Change: I would have to go down the road thanks a lot.
Unknown Executive: Thanks a lot.
Unknown Executive: There are places where the clients find it very interesting that a consulting company can actually execute and manage the end-to-end process areas for them. So we will continue to collaborate much stronger in front of the clients, both leveraging Capco's capabilities, and it will be a very strategic advantage for us.
Speaker Change: Thank you.
Speaker Change: Conflicting forces.
Speaker Change: For us, it's going to be a strategic advantage and KEPCO plays a significant role well here as.
Speaker Change: As you say to a Washington now there are a couple of things that we want to do with capital capital for us in the context of VA per se is going to be the bulk of the spear for us. So what we wanted to look at as an end to end from a consulting led to execution and that story is what we wanted to take to our clients and we're getting a lot of good traction as we speak.
Moshe Katri: Thank you. Best of luck. Thank you. Thank you. We have our next question from the line of Abhishek Kumar from JM Financial. Please go ahead. Hi, thanks for taking my question. Srinu, congratulations on your elevation.
Speaker Change: There are there are places where the clients find it very interesting that in or is it a consulting company can actually execute and manage though the end to end process for them. So we will continue to.
Speaker Change: Collaborate much stronger in front of our clients.
Speaker Change: Leveraging capitalists capabilities.
It is going to be a very strategic advantage for us.
Abhishek Kumar: My first question is on Capco growth. You mentioned you saw both potential growth and strong growth. I'm just trying to reconcile a bit with the comments that we hear about discretionary spend, especially in BFSI, remains sluggish. So what explains the strength in Capco? Maybe if we can highlight certain areas where Capco is winning, that's my first question.
Speaker Change: Thank you best of luck.
Speaker Change: You.
Speaker Change: Thank you.
Speaker Change: We have a next question from the line of Alicia Kumar from JM Financial. Please go ahead.
Abhishek Kumar: Yeah, Hi, Thanks for taking my question actually was on what's a nuisance.
Alicia Kumar: Yes.
Abhishek Kumar: My first question.
Abhishek Kumar: Cool.
Abhishek Kumar: You mentioned the slot.
Abhishek Kumar: Swamy.
Abhishek Kumar: You can find it.
Swamy: Yeah, Bob discretionary spend, especially in India right now.
Swamy: So you want to explore.
Swamy: Well, maybe if you can highlight.
Oh, that's cool.
Swamy: And then.
Swamy: That's my first question.
Unknown Executive: So, your observation is right, Abhishek. In the last two consecutive quarters, we have had sequential growth, both in the order book and revenues. I think what we are seeing is in the BFI sectors, these are green shoots; we have seen some of the discretionary spend coming to us in the context of consulting. The second part is also where wherever we are leading in with Capco as a tip of the spear for us, we are getting that advantage around the deals that we are working on, and there are a lot of synergy deals that we are working together on going forward, so that's an advantage that we want to leverage, and that's a differentiation we want to do going forward.
Swamy: So your observations I've got to shake out in the last two consecutive quarters, a big part of the secret to the growth both in the order book and our revenues.
Swamy: So what we are.
Swamy: Seeing as in the beer for sectors like Green shoots they haven't seen some of the discretionary spend are coming to us.
Swamy: In the context of a consulting the second part is also very relevant and we are leading in with the capital as people just fear for us getting the advantage.
Swamy: The deals that you are working on and there's a lot of synergy gains that could be a walking together going forward. So that's the advantage that we want to leverage and that's a differentiation we wanted to do.
Swamy: Going forward.
Abhishek Kumar: Okay, maybe if we follow up on this, then, you know, given the strength here and the exercise stabilizing, I'm just wondering why this is not translating into, you know, slightly better guidance for next year. At midpoint, I will still see decline, you know, sequentially. So what explains, you know, slightly weaker guidance for Q1? Hi Abhishek.
Speaker Change: Okay, maybe a quick one.
Speaker Change: And then given the strength, yeah and be able to say stabilizing.
Speaker Change: Ryan This is on top of it.
Speaker Change: Slightly below guidance for next year.
Speaker Change: I'm just going to decline.
Speaker Change: Sequentially, So what explains.
Speaker Change: It's like a guidance.
Speaker Change: Guidance for Q1.
Speaker Change: Well Ah Hi, Abhisheka, Bob just wanted to share with you that the overall demand environment.
Aparna Iyer: Just wanted to share with you that in the overall demand environment, we don't see a material change. I think it's very similar to how we saw it at the beginning of this calendar year. So the macroeconomic environment and the challenges around slower discretionary spend remain.
Speaker Change: I didn't see him, but he didn't change I think it's very similar to how we saw it at the beginning of this calendar year.
The macroeconomic environment and the challenges around discretionary.
Speaker Change: This creation of these Finjan, Inc.
Aparna Iyer: What we've shared is that, in the set of the portfolio of clients that TAPCO works with, we are beginning to see some kind of stabilization. And the growth that Capco has shown in Q4 is very encouraging. As far as Q1 is concerned, they are continuing to have stability. Now this is coming in after a few very rough quarters for Capco, so you should read it in that context.
Speaker Change: What's the shape is that Nancy green shoots in Topco are in Dallas at the portfolio of flying to tackle what say, we are beginning to see some kind of stabilization and the group.
Speaker Change: That capital has shown in quarter four.
Speaker Change: And it is very encouraging as far as Q1 is concerned they are continuing to see.
Speaker Change: Okay ability now this is coming in after a few good eat off quarter slipped out.
Speaker Change: Should we need it in that context, let me shake okay.
Speaker Change: Okay.
Speaker Change: Overall guidance visibility of course eventual itself saw his good and got to go up I don't think but also the overall macroeconomic environment and the softness is also very much a part of it. So this is for me had guided based on what it does it there too.
Abhishek Kumar: Thank you very much. And that's it. So maybe one quick last question, I just noticed a sharp uptick in the top line revenue this quarter. Do you know anything to read into this? Is it a runoff?
Speaker Change: Off now.
Speaker Change: And.
Speaker Change: Okay.
Speaker Change: So maybe one last question.
Abhishek Kumar: What explains such a sharp increase in top-line revenue? Thank you. You know, Abhishek, sometime in Q2, I think we had shared that in a couple of our large accounts, we had won bookings that aggregated to about half a billion dollars each, right? Now, one of those clients has actually gone ahead and become our top client. So we're very pleased to share with you that our top client is now a different one than what we've had for several years, and we're very happy with the progress that we've made, and Abhishek, just to add a few more colors to that, the large deal pipeline continues to be strong and does consist of mega deals as well.
Speaker Change: The sharp uptake.
Speaker Change: We named adopt and revenue this quarter anything to read into basically run off.
Speaker Change: What explains that the shops within the top line.
Speaker Change: Thank you.
Speaker Change: Yeah, I'll be shake you would recall sometime in Q2, I think we had shared that.
Speaker Change: In a couple of our larger problems, we had one bookings that aggregated to about half a billion dollars. Each right now one of the clients is actually.
Speaker Change:
Speaker Change: Gone ahead and become a top flight so really pleased to share with you that our top client is now.
Speaker Change:
Speaker Change: A different one that Lockheed had 470, yes, I'm really happy with the progress that you've made and.
Hey, that's lumpy in nature. So that's why you seem to.
Speaker Change: Appreciate just to add a few more color to that.
Speaker Change: Oh.
Speaker Change: Large deal pipeline continues to be strong and it does gets itself up mega deal sizes, but we are also well positioned to sustain and further improve our large deal and megadeal wins going forward.
Abhishek Kumar: We are also well positioned to sustain and further improve our large deal and mega deal wins going forward. Thank you. Thank you. We have our next question from the line of Ravi Menon from Macquarie. Please go ahead.
Speaker Change: Sure.
Speaker Change: Thank you and good luck.
Speaker Change: Thank you okay.
Speaker Change: We have a next question from the line of Ravi Menon from Macquarie. Please go ahead.
Ravi Menon: You know, I guess the first question is on the top 10. We've seen not only the top 10, but even the top 2 to 5 that have seen growth. Your BFSI is actually seeing pretty strong growth as well. When I look at it, healthcare also seems to be doing well. So, the ones that are actually not doing well seem to be relatively smaller segments like communications or high tech. Could you give us some comment on whether the weakness in these segments is the reason why you're still looking at mutated growth after the next quarter? And should we expect that in your biggest verticals, you're actually seeing growth?
Ravi Menon: Alright. Thank you. So you can read lesions on the new roles I'm wishing you the best.
Speaker Change: Uh huh.
Ravi Menon: The first question is on the top end.
Ravi Menon: I've seen some people that don't plan, but even the top two to five doesn't seem good.
Ravi Menon: You'll be at her clients actually seeing pretty strong growth that's been.
Ravi Menon: When I look at it and can also contributing.
Speaker Change: So yeah.
Speaker Change: The ones that are actually not doing relative to the later would be smaller pigment communications Oh, Yeah I think.
Speaker Change: Some color on whether the weakness in these segments are and why you're still looking at a double digit growth.
Speaker Change: Duncan for next quarter.
Speaker Change: Should we expect that being your biggest split because he likes to say.
Speaker Change: Oh.
Aparna Iyer: Thanks Ravi, maybe I will ask Aparna to give some color to it.
Speaker Change: Thanks, Avi maybe ever Lasco whatnot.
Avi: To give some color to that.
Avi: Oh.
Aparna Iyer: Ravi, yes, you know, this quarter for us in terms of BFSI, we've seen quarter-on-quarter sequential growth after, you know, at least four quarters of being very soft. Healthcare has continued to do well, and we will continue to see the momentum build on. We're very happy with both our positioning offerings and the kind of growth that we are seeing in that sector. EMU and manufacturing, we do believe that it's been soft for Wipro. And, you know, there is some muscle to be built.
Speaker Change: Sure Let me, yes, you know.
Speaker Change: This quarter for us in terms of the exercise is seen a quarter on quarter sequential growth also.
Speaker Change: You know.
Speaker Change: Actually its full quarter yourself being asos healthcare has continued to do well and we will continue to see the momentum been done really happy with it.
Speaker Change: Both are positioning all things in and the kind of growth that you're seeing in that sector.
Speaker Change: Yeah, and you on manufacturing.
Speaker Change: We do believe that Guy has been soft for the pill.
Speaker Change: And you know there is some are supposed to be big we have a good pipeline you have interesting deals in the C.
Aparna Iyer: We have a good pipeline, we have interesting deals in the pipeline, and we'll see how they convert. We are more hopeful of getting back to growth in the second half in the sector. You know, consumer and life sciences, again, you know, it continues to be impacted by, you know, the overall spend environment going to, you know, higher inflation, and as a result, you know that those are the broad colors that we wanted to share with you from a sector perspective. And therefore, it's a little bit of a mixed bag.
Speaker Change: And you can see how they can book more hopeful of getting back to growth in the second half in these sectors.
Speaker Change: You know cause you learn life Sciences again, you know it continues to be impacted by you know the Oh.
Speaker Change: Overall, it spending environment going into you know higher inflation and as a result, you know that's that those are the.
Speaker Change: God knows if he wanted to share with you from a sector perspective.
Speaker Change: And therefore, it's a little bit of a mixed bag. So yes, we are seeing green shoots and.
Aparna Iyer: So yes, we are seeing green shoots. And, you know, we will see early signs of stability, because now we've had two quarters where we've consistently seen, [inaudible] We shared with you an outlook that basically has components of everything that I've just... Thank you.
Speaker Change: Now are we will see you see early signs of stability because now we've had two quarters that we've consistently seen.
Speaker Change: And I'm just consulting but other parts of the site are coming down but are they early to see that or this is deterministic is shifting right. Because we continue to remain cautious in that space.
Ravi Menon: And, you know, the utilization number at 84.8% does exclude all the acquisitions, right? So how should we think about where, say, for example, Capco's utilization might be? Should that be a margin lever if the FSI demand comes back? Subtly, we don't share our utilization, including some of the acquired entities. That is correct. Our overall utilization, even outside of the acquired entities, has been, you know, we've seen very remarkable progress that we've made over the last few years. We are very happy with where we are and we hope to sustain it even as the demand comes back, and maybe we will have to invest in growth at some point in time.
Speaker Change: We shared with you an outlook that basically has confidence okay everything that I'm just.
Speaker Change: Think of neutral.
Speaker Change: Thank you Linda.
Speaker Change: The utilization number a beautiful appointed person do they exclude all that because it seems like so how should we think about that say for example capital utilization.
Speaker Change: Utilization might be would that be of modern midlife.
Speaker Change: Because that demand comes back.
Speaker Change: Suddenly, we don't share our utilization, including some of the acquired entities. So that's great.
Speaker Change: Overall utilization even outside of the acquired entities has been a you know what we've seen in may.
Speaker Change: Mark the progress that we've made over the last four.
Speaker Change: Four to five quarters and that all veeva, they're very happy with maybe at and we hope to sustain it even as the demand comes back in.
Speaker Change: Maybe they would have to invest for a girl.
Speaker Change: But at some point in time, but for now we will try and going through that utilization.
Ravi Menon: But for now, we will try and hold to that utilization. In Capco, certainly, that is a lever, and we've got an incredible asset. Like Srini said, we have to drive more synergy wins and basically press on with the revenue acceleration in Capco. And that should do a lot of good for the margins as well.
Speaker Change: In topical therapy that is illegal and you know we've got an incredible what's it like Genie said, Oh, we have to drive more synergy wins and you know basically that's on the revenue acceleration in capital and that should do.
Speaker Change: Yeah.
Speaker Change: You know a lot of go to the margin that's it.
Aparna Iyer: Thank you all and best of luck. Thank you. We have our next question from the line of Kavaljit Saluja from Kodak. Please go ahead. History, many congratulations on your elevation to see your role.
Speaker Change: Thanks, so much and best of luck.
Speaker Change: Thank you.
Speaker Change: We have a next question from the line of <unk> from <unk>. Please go ahead.
<unk>: Yeah, Hi, thank you.
Speaker Change: History, maybe congratulations on younger and you'd be shooting down right.
Speaker Change: Yeah.
Speaker Change: I have three questions for you shouldn't eat them.
Unknown Executive: The first one is the fact that you have been with the organization for more than three decades and you have been quite a remarkable performer.
Speaker Change: The first one is the fact that you have been with the organization for more than three decades, and I've been quite remarkable for families.
You know I live up to the same thing, Florida through our organization as a whole.
So what is your view on what is your honest testing for the reasons for what goes right challenges and aspects of it goes business definitely quite a fix.
Unknown Executive: What is your assessment of the reasons for Wipro's challenges and aspects of Wipro's business that require a fix?
Speaker Change: Yeah.
Speaker Change: Thanks, a J I think thanks for the compliment has been having been here for three decades.
Unknown Executive: that we are looking for. The second part, Kanwaljit, in the recent past, as Wipro is an organization, we have had high exposure to discretionary spending. And hence, you know, we have sometimes been soft on BFSI during those periods. And that could be another factor that you would have seen us grow a little slower.
Speaker Change: All I can say is that.
Speaker Change: If we continue to focus on those of key fight or flight keep blocky areas that I call you called out yourself and definitely execute tuck right with the speed and if he could put you need to bring in.
Speaker Change: I think we can make a difference so to me our strategy with a combination of execution is what the 10 gig was the outcomes that we're looking for.
Speaker Change: Second part I noticed in the recent past at all as if it wasn't organization, we have a high exposure to discretionary spending and hence you don't do you have for sometimes the softness on the defense side.
Unknown Executive: Okay, so you basically think that there's nothing wrong with just those portfolio challenges, etc. Those practical challenges, which are there, you know, and just a simple focus on execution will do the trick.
Speaker Change: And during those periods and that could be another factor I know that.
Speaker Change: I thought you would've seen us grow a little slower.
Speaker Change: Okay. So you think that there's nothing wrong against those are.
Speaker Change: Portfolio challenges et cetera.
Unknown Executive: So, if you look at it, the way we are structured, we have got four markets, right, and each of the markets is different. They have different responses to the macro environment that we are looking at. So that's number one.
Tactically challenges, which I think is Oh you know.
Speaker Change: This isn't the focus and execution will do the trick.
Speaker Change: So if you look at your debate you are structured we have got the full buckets right I know each other markets are all different they have a different oh responses to the macro environment that they'll be looking at.
Unknown Executive: Second, if you look at Wipro as a company, right, in the last few years, we've gone through a significant transformation. And for a change like this, sometimes, you know, we have to make some adjustments across the organization, and this can lead to different views. I think from my perspective, my vantage point, my knowledge of our clients and our business, and, of course, the point that you made, having lifelong connections across our company should help us, you know, move us into action quickly. That's what I'm looking for.
So that's number one and second is if you look at Wipro as a company like in the last few years, they've gone through a significant transformation.
Speaker Change: And for a transformation like this sometimes to know all of you have to make some adjustments that caused the organization and this can lead to a different views.
Speaker Change: I think from my perspective, my Vantage point right my knowledge of our clients and our business and of course, the point that you made I think the lifestyle collections across our company should help us Oh movies sports things like sleep actions, a quickie I kind of wonder if.
Speaker Change: That's what I'm looking for okay. That's.
Unknown Executive: That's fair. The second question that I had, Srini, is that your organization has seen plenty of churn, you know, senior executive churn, so what are the measures that you will put in place to reduce it?
Speaker Change: That's fair, that's pushing up I heard that she needs a good.
Speaker Change: Oh can I assume that's C. J D. I'll put you on a senior executive chair. So what are the measures that he was put in place.
Speaker Change: To reduce the.
John Davis.
Saurabh Govil: Sure, maybe I'll ask Saurabh to respond to that.
Speaker Change: Sure, maybe I'll ask a startup to respond to that.
Saurabh Govil: So Kamal, you know, I must tell you that the last two weeks when Srini has taken over and The General Euphoria among employees. That's somebody who started his career in the company at the very top, at least.
Speaker Change: So come on as you know Atmos that he was there when I was two weeks when she and he has taken over in Europe.
Speaker Change: The general little before your market going back to somebody who started his career in the company at least through at each stop.
Speaker Change: So I didn't really believe that if growth comes back opportunities out there for people who grows just seeing people growing up I don't know another example for US who started their career.
Saurabh Govil: So I genuinely believe that if growth comes back, opportunities are there for people to grow. We are seeing people grow. Aparna is another example for us who have started a career. People will be keen and continue to see that this is the place for them to make their careers. So that's what the... Having said that, you know, as Srini called out... [inaudible]
Speaker Change: People know that we will be kicking in.
Speaker Change: Continue to see that this is a place for them to be victorious.
So that's what it is.
Speaker Change: Having said that unless you really called out.
Speaker Change: Debt structures and strategy I'm, not changing but can you just simply won't be able to be living organization there'll be some people, who would you know one kind of stuff, but there's no major disruption in the baby who work, although nice outfits. So I don't see that myself.
Saurabh Govil: We want to develop talent internally and also have a strong line of leaders in our pipeline, and that's another focus area for us going forward.
Unknown Executive: Okay, the final question that I have for you Srini is that sometime in 2020, you had a magic wand. You actually struck fairly lucrative two Mega Deals in the retail vertical. But the organization has been silent on Mega Deals since. You know, has the muscle memory weakened on the Mega Deals, or, you know, good news is around the corner?
Speaker Change: Forward.
Speaker Change: And Karl just it'll be want to be Walker Dunlop talent internally and I can also have a strong lineup who does.
Speaker Change: You know in our pipeline and that's that's another focus area for us.
Speaker Change: Going forward.
Speaker Change: Okay.
Speaker Change: Christian I think they have Oh, what do you see new sector.
Speaker Change: Sometime in 2020 are you had a magic wand, you actually should truck frenzied nicely accretive to make that these are in the retail worth it goes back to the organization that are inside of there in front of me that they use it seems so.
Speaker Change:
Speaker Change: Has the market isn't going to be a weekend on that and they got to use or the good news is around the corner.
Unknown Executive: Good question, Kanwaljit. I think the way we have structured ourselves in terms of going after the large deals and mega deals is to try and focus not only on how you pursue a deal but how you originate a deal, how you shape the deal, and the entire process around that. So that becomes very critical for us. You know, in fact, what I would like to do is for the sales team on the ground across the markets and across the industries to try and create a proactive pipeline, because that becomes very critical for us, because you work along with the client and the partner in a deal pursuit, right, you know, the probability of winning is also much higher.
Speaker Change: A good question 10 loves it.
Speaker Change: Thank God.
Speaker Change: Debate, if you ex structured offensive in terms of going after the large doosan. They got deals is to try and focus on not only on at all how you pursue a deal but how do you. What did you have to deal how do you shape 59 times a process around that so that becomes very critical for us. So.
Speaker Change: In fact, what I.
Speaker Change: I would like to do is up for sale.
Speaker Change: Sales team on the ground across the markets and of course, the industry is trying to create a proactive pipeline because that becomes very critical for us because you work along with the client and the partner in that deal pursuit right to note. The probability of winning is also much higher so what we wanted to do what they want the team to do is stay focused on those proactive deals.
Unknown Executive: So what we want to do, what I want the team to do, is stay focused on those proactive deals as we move forward. Also, if you look at earlier, we had mentioned in Q2 that we had won close to half a billion dollar deals in two of our large accounts. And one of the two accounts now has gone on to become one of the largest clients for Wipro, so we've seen that momentum also happen.
Speaker Change: As we move forward.
Speaker Change: Also.
Speaker Change: If you look at our earlier you had mentioned in Q2 that we've got one too close to half a billion dollar deals.
Speaker Change: In two of our larger accounts and one of the two accounts.
Speaker Change: Go along to become one of the largest customers lots of slide four people or so.
Speaker Change: Is that with all of you have seen that momentum also happened.
Unknown Executive: Yeah, that's true. Okay. I mean, you've been very patient with me, so I'll just, you know, squeeze in one large question, so please don't mind. Finally, on Capco, I guess Thierry's view of Capco integration was a light-touch integration; keep that in a separate organization. Do you agree with that approach? And, you know, would that approach continue? Or would you see, you know, a much tighter integration of Capco with Wipro's overall portfolio?
Yeah, that's true okay.
Speaker Change: Fishing with me so I just squeeze in one Dodge a question that's a peace of mind on the fine with you on the chemical I guess the theories are you also kept the integration was a light bacteria integration keep getting sick breakdown, but all good things. They shouldn't do you agree with that approach and you know what that approach continue.
Speaker Change: You would see a much tighter integration of chemical without with perot's overall portfolio.
Speaker Change: Yeah.
Speaker Change: So can lose it I think I'm keeping the capital brand.
Speaker Change: This is a strategic business, but what is more important or sometimes it is.
Speaker Change: I look at KEPCO or any of our consulting business.
Speaker Change: The dominant consulting teams could be like people died booked photos right. So when you go in front of the client do go and that's one people in the country.
Unknown Executive: So, Kanwaljit, I think keeping the Capco brand as it is is a strategic business, but what is more important, Kanwaljit, is I look at Capco or any of our consulting business domains and consulting teams as the tip of the iceberg for us, right? So, when you go in front of a client, you go in as one Wipro in the context of how you're going to solve it.
Speaker Change: Next up the whole solution it but what's very important is the kind of not kind of seeing so connect caf.
Speaker Change: Yes, I think that's something that because that's something we've put organization can actually live with it. So I would say that you know you go to a focus on a joint positioning and our bidding discipline sales campaign that can deliver the best for the people in that particular segment.
Gaurav Rateria: Fantastic. Thank you. And thanks a lot. Thank you. We have another question from the line of Gaurav Rateria from Morgan Stanley. Please go ahead. Hi, thank you for taking my question. Many congratulations, Srini, on your new role. My first question is again with respect to your success in Megha D. When you look at the overall internal, you know, your mega deal participation, your win rates, where do you think the work in progress is?
Speaker Change: Okay fantastic. Thank you and thanks, a lot so far because you can say.
Speaker Change: Thank you.
Speaker Change: We have a next question from the line of Goto deviate from Morgan Stanley. Please go ahead.
Goto: Alright. Thank you for taking my question. Many congratulations <unk> on your new role. My first question is again with respect to your success in B E.
When you look at the overall.
In general.
Goto: You know when you're a megadeal participation you'll windage there do you thing the work in progress.
Gaurav Rateria: Where do you think you need to, you know, make some changes? Is it more about your participation, or is it more about, you know, your win rates? Just trying to understand what needs to be fixed to be able to participate more in the mega deals.
Goto: Is that where do you think you need to make some changes or is it more about your participation and or is it more about you know you wouldn't do it just trying to understand at what needs to be fixed to be able to participate more in the bakeries.
Goto: So.
Operator: I wish you could just repeat the question. I lost you for a minute. Sorry.
Speaker Change: Oh good Robert.
Robert: If you could just repeat the question I just lost you for a minute.
Gaurav Rateria: My question is with respect to your mega deal success, just trying to understand whether this requires more fixing on the participation side, proactively creating the pipeline side, or is it more about the win rates? You participate, but the win rates are not so good. Just trying to understand what needs to be changed to be able to more consistently deliver some of the mega deals.
Robert: Yeah. My question is with respect to your I mean, you Gotta do the success just trying to understand is it a is it is it requires more fixing on the participation side proactively creating pipeline side or is it more about the when they actually look like.
Robert: Participate, but our win rates are not so we're just trying to understand.
Robert: Got it got it requires to be keen to be able to you know more consistent do they need what are some of them to meet their needs.
Unknown Executive: for us is to be very proactive within the market, whether it's our clients or partners or the influencers in actually sourcing these deals and then kind of shaping the deals which are very specific to those industries. The way you structure it and the way the business objectives of the clients are met also becomes very critical. So it's a combination of both, which will actually lead us to a better win ratio going forward.
Well. Thank you I got I got a question I think you are absolutely there are two parts to it but what is important for us is to be very proactive.
Robert: It's in the market, but that's because our clients our partners those influences.
Robert: Actually sourcing that sort of thing that these deals and then kind of shipping the deals which are very specific to those industries the video solution and debate.
Robert: This objective is the clients I've met also becomes very critical so it's both it's a combination of book, which actually leads to lead it.
Robert: As to a better win ratio going forward got it I've seen the experience that's variable.
Unknown Executive: And I've seen the experiences where we have worked very well with clients and ahead of the curve; I think our probability of winning has gone up. What we want to do is become a lot more consistent, a lot more repetitive across our markets and across our industries.
Robert: But what have you been with the clients and I hate to Cook I think it all our probability of winning is gone up what we want to do is become a lot more consistent lots more detail across all markets and across other industries.
Speaker Change: Got it my second question is with respect to GAAP cool a easy way to understand what kind of deals are coming in terms of new channels of work and is it more broad based across large number of clients is it more concentrated with a few clients is it just a tip of the spear engaged.
Gaurav Rateria: My second question is with respect to Capco. It would be great to understand what kind of deals are coming in terms of the nature of the work. And is it more broad-based across a large number of clients? Or is it more concentrated with a few clients? Is it just a tip of the spear engagement that is coming right now? Or is it also involving some amount of downstream work? Probably that will help us to get some comfort in how sustainable this trend that you are seeing is. Thank you.
Speaker Change: And that is coming right now or is it also involving some amount of downstream book are probably that could help us in getting some comfort in how sustainable are these trends that youre seeing us. Thank you.
Unknown Executive: There are two opportunity sets that we have with Capco. One is Capco going on its own, doing consulting work for them, which is a lot more of a different buyer within that particular organization. But what we are focused on are the synergy deals, with Capco being the tip of the spear and helping us in the downstream, because that is where we can actually win a lot more large deals and mega deals.
Speaker Change: No absolutely go to I think.
Speaker Change: Good luck to race to do opportunistic fix that we have at capital one is capital going on it's all doing consulting work for them, which is which is lot more or a different buyer within that particular organization, but what we are focused on is the synergies with the capital being the tip of the spear in helping us and they don't see them.
Speaker Change: That is weird because there's been a lot more large deals in regard to you know using capital do you have an advantage in terms of shipping.
Unknown Executive: Now, using Capco, we have an advantage in terms of shaping the deal because you can be a lot more focused on the context of the customer process areas and the customer's business problem that we are trying to solve, and then you can put the downstream revenue, which could be either a cost transformation or it could be a business transformation.
Because you know you can be locked before clustered in the context of the customer process areas from their customers. There's this problem that you're trying to solve and then put the downstream revenue, which could be I bet. It cost transformation or it could be a ER visits time somebody should go to.
Speaker Change: Yeah.
Gaurav Rateria: And the recent success that you've seen in the last two quarters, is it more again on the synergy teams that you have seen things coming back? Or is it, you know, more independent work of Capco that is being seen from? It's both, Gaurav. You know, certainly it is secular.
Speaker Change: And the recent success that you've seen in the last two quarters is it a more again on this you know you do that you are seeing things coming back or is it are you know more.
Speaker Change: Our independent wall of capital that is being seen some success.
Speaker Change: It's both got up.
Speaker Change: You know certainly this circular all.
Gaurav Rateria: We are seeing a secular uptake across the service offerings of CAPCO across geographies. You know, and it is led; it's more broad-based. Also, we are winning good synergy from the collaboration, which has only increased in the last four quarters. Given the macroeconomic environment and the fact that, you know, deals were harder to come by, we've certainly built the muscle on synergy a lot better; both are coming in. Thank you.
Speaker Change: We are seeing.
Speaker Change: Cool uptake across.
Speaker Change: Across the Philadelphia will stop cool, that's all geography.
Speaker Change: You know and it is led.
Speaker Change: Brad Pitt.
Speaker Change: Also we are winning good to know G. D from the collaboration has.
Speaker Change: Well I mean piece in the last four quarters.
Speaker Change: Given the macroeconomic environment and the fact that you know the.
Speaker Change: The deals are harder to come by.
So I can any boost the muscle long. So now she also a lot better.
Speaker Change: Both are coming into play.
Speaker Change: Got it. Thank you last question from me or know how to look at the conversion of our net income into operating cash flow on a sustainable basis. I know this has been a fantastic years saw the throat, but going forward more on a sustainable basis, what should be the right way to look at it. Thank you.
Gaurav Rateria: Last question from me, Aparna: how should we look at the conversion of net income into operating cash flow on a sustainable basis? I know this has been a fantastic year for Wipro, but going forward, more on a sustainable basis, what should be the right way to look at it?
Aparna Iyer: Thank you. As you know, if you look at just our historical performance, we've always been between about 85 to 110% of free cash flows is what we generate as a percentage of net income. And that's a good number to target.
Speaker Change: Oh, you know what you say look I just saw a historical performance, we've always been between like 80, Phyto I'm going to turn.
Speaker Change: 10% of our free cash flows is what we generally are the person do you have an open call.
Speaker Change: And that's a good number to target Oh, yes, I think that by 'twenty four.
Aparna Iyer: Yes, FY 24 was a very good year for us in terms of free cash flow generation, and we'll continue to work on all fronts. Thank you. Thank you. We have a next question from the line of Kumar Rakesh from BNP Paribas. Please go ahead.
Speaker Change: Very good yeah, I'll start off in terms of free cash flow generation and then continuing to work on all fronts.
Speaker Change: Thank you all the best.
Thank you.
Speaker Change: We have a next question from the line of Kumar Rakesh from BNP thought about please go ahead.
Kumar Rakesh: Hi, good evening. Thank you for the... First question was about large D accelerators. I understand that mega deals haven't been around a lot, but large deal performance has been quite fairly good over the last two years. What used to be about 600 million on an average two years ago, now you have been consistently doing about 1.1 billion or quarterly large deals.
Kumar Rakesh: Hi, Good evening. Thank you for taking my question.
Kumar Rakesh: The first question was.
Kumar Rakesh: Don't promote logothete acceleration.
Kumar Rakesh: Right I understand that havent been in a long lasting performance have been quite fairly good over the last two years.
Kumar Rakesh: From what used to be about 600 million on an average of two years back.
Kumar Rakesh: And then just thinking you're doing about one 1 billion quarterly noise games.
Kumar Rakesh: But that has not been reflected into stronger crude. So when you talk about that you would not do Brooklyn long steel Exolete issue, what does that mean and how should that constantly can do.
Kumar Rakesh: [inaudible]
Unknown Executive: So a couple of things. One is, when I say large deal acceleration, Kumar, you know, the idea here is that obviously, you've got to have a lot more deals in the pipeline. So there, again, I feel, my ask is that we have to be proactive on those large deals. What that means is, can you shape the deal even before the deal comes out, right? And this you can obviously do with many of your large clients, where you have a very strong relationship.
Kumar Rakesh: <unk>.
So a couple of things one is our when I say large deal acceleration come out at all.
Kumar Rakesh: I heard is that obviously you got out of a lot more deals in the pipeline.
Unknown Executive: So that's number one. Second, the size of the deal and the frequency of the deals. If we can, you know, slightly increase those, that can give us a momentum going forward. Now, in terms of converting the large deal of TCVs to revenue, maybe I'll ask Aparna to make a comment.
Kumar Rakesh: Since you have to deal with you forgetting it all slightly increased that can give us a moment of going forward now it does ah converting the lot still.
Kumar Rakesh: T T V stool revenue, maybe last couple not to make a comment.
Aparna Iyer: To Rakesh, this is again, you know, something that I think not just us but it's just the nature of the market that, you know, the conversion is lower. It is because A...
Kumar Rakesh: Well Lucky shot again, and that's something that I I I think.
Kumar Rakesh: Stuff, but.
Kumar Rakesh: It's just the nature of the market.
Kumar Rakesh: The conversion is Lola it is because a.
Aparna Iyer: While we continue to win these deals and replenish the bucket, there is a... discretionary spend environment which is weighing on our revenue performance, right? So we are continuing to see ramp-downs that are happening where existing projects finish but are not getting replenished at the same pace. So that is again weighing down in terms of the conversion from booking through revenue, and I think that's the major aspect. Also, what has happened is while the momentum is much stronger on the large deals and the larger deals, the smaller deal buoyancy has certainly slowed down, and you know, at least in the last four quarters, we've seen that. So those are two things that are weighing on revenue. Thanks for that!
Kumar Rakesh: Why do we continue to Wednesday.
Kumar Rakesh: Replenished the bucket there is.
Kumar Rakesh: <unk>, which is waiting on a revenue cellphone right. So we are continuing to see <unk> happening there existing projects finish, but I'm not getting replenish at the same pace. So that is again laying down in terms of the conversion from bookings.
Kumar Rakesh: <unk> <unk> and I think that's I think the major.
Kumar Rakesh: Also what is happening days, while the momentum as much stronger on the lottery than the larger deal.
Kumar Rakesh: Smaller these buoyancy five certainly you know slowed down.
Kumar Rakesh: And the last four quarters be seeing that so that those are two things that are going on that Avenue.
Speaker Change: Thanks for that my second question was it on the number of lines less than one minute. So for the last two quarters, we have been proving once more medical loans smaller planes.
Kumar Rakesh: My second question was around the number of clients less than 1 million. So for the last few quarters, we have been trimming our smaller accounts, smaller clients. But in this quarter, on a sequential basis, it has increased. So is this one off, or there's a change in strategy now as we are looking at these smaller, There's no change in strategy, you know, Rakesh. I think we continue to. Our strategy has only got more firm.
Speaker Change: <unk> four days of cheese inside the T. Mobile we are looking at these wonderful.
There's no change in strategy <unk> I think we continue to.
Speaker Change: Our strategy is you'll need <unk>, we are looking for profitable growth and we will continue to devote ourselves in a in a few geography. Today. We are doing you know we're not in high value jobs will make the work that in new age opportunities that you Wanna be we would like to <unk>.
Kumar Rakesh: We are looking for profitable growth, and we will continue to pivot ourselves in a few geographies where we are doing, you know, we're not in high-value transformative work that in new age opportunities that we want to be, we would like to pivot our service offerings. And in that context, we did take action, especially in apnea, as a case in point. I spoke about it. So, what you're seeing, quarter on quarter, can we manage it? You know, if there will be volatility that will play out quarter on quarter, but I can assure you there's no fundamental shift in strategy; we will continue to focus on profitable growth. And, you know, mind
Speaker Change: <unk> and in that context, we did take actions, especially in apnea.
Speaker Change: Case in point I spoke about it so <unk> <unk>.
Speaker Change: Give me a manager.
Speaker Change: <unk> wallet ability that will play out.
Speaker Change: But I can assure you there's no fundamental shift in strategy, we will continue to focus on profitable growth.
Speaker Change: You know mine depot.
Unknown Executive: So I can just add two more points to that. One is that it's not just the number of accounts but the quality of accounts we have, which is very important for us going forward. Second, you know, if you look at our, we have continued to add accounts in the 100 to 100, greater than $100 million bucket. And in fact, we added three, three, three accounts in that particular packet. So that's another one we want to keep tracking and
Speaker Change: So <unk> what is to get started with the number of the account.
Speaker Change: <unk>, which is very important photos going forward.
Speaker Change: Oh, it looks like it is.
Speaker Change: So you'll get a real <unk> hundred poodle.
Speaker Change: 100 million dollar budget.
Speaker Change: 3383 accounts.
Speaker Change: Pretty good budget. So that's another one that nobody wanted to keep tracking and keep moving.
Kumar Rakesh: Got it. That's very helpful, and all the best.
Speaker Change: Got it and that's where you can put them on the street.
Yogesh Agarwal: Thank you. We have our next question from the line of Yogesh Agarwal from HSBC Securities and Capital Markets. Please go ahead. Yeah, hi. Thanks. Srinivas, first of all, congratulations on your promotion. Just a couple of questions I have. Firstly, on the structure, a few years back, in theory, Wipro moved to a geographic structure, which was a bit of a unique setup compared to other companies. So are you looking to go back to the vertical structure? Just any thoughts on that? And then I have a follow-up.
Speaker Change: Thank you.
Speaker Change: We have our next question from the line of Yogesh, <unk> Itches Visa Securities and capital markets. Please go ahead.
Yogesh: Yeah, Hi, Thanks, excuse me, but the phone congratulations on your promotion.
Yogesh: A couple of questions I have for a D. On this trip to a few years back and then we can move to the geography, strep sandwich with a bit of a unique set up compared to other companies who are you looking to go back to the <unk>.
Any thoughts on that.
Unknown Executive: Thanks, Rakesh. I think the four strategic market units that we have and the four GPLs structure that we have will continue. No plans to make any changes.
Yogesh: And then I have a <unk>.
D: Yeah. Thanks, Okay I think.
D: Four.
Speaker Change #101: <unk> and the <unk> the structure that really helps to continue no plans to make any changes.
Yogesh Agarwal: Right, right. And the second thing, Srini, I mean, your headcount continues to decline, it's down like 10% and 87% utilization. So this people sometimes get a feeling, are you guys even looking at any kind of imminent pick-up in growth because this is quite a bit of tightening, operational tightening happening.
Speaker Change #102: Alright, and the second thing I see I'm in your head down to continue to decline, it's down like 10% and 87% utilization so.
Speaker Change #102: Sometimes get the feeling are you guys, even looking at anytime that for a minute pick up include because this is quite a bit of <unk> <unk>.
Saurabh Govil: To you guys, Saurabh here. Headcount has come down; it was driven by operational deficiencies. And as you see, our utilization has been at an all-time high in Q4. We have the supply side, you know; as demand picks up, we will be able to quickly ramp up. We are comfortable with that part, so I don't see that as a challenge. We just have learned, you know. I think we as an industry all over-hired at a point in time, you know, just post-COVID, so we just went with more caution, more judicious, and, you know, as we move forward.
Speaker Change #103: So you'll be shattered.
Speaker Change #103: <unk>.
Mostly driven by arbitration deficiency.
Speaker Change #103: See your information has been <unk>.
Speaker Change #104: We have.
Speaker Change #104: The supply side, you know as <unk>.
Speaker Change #104: You'd be able to <unk>.
Speaker Change #105: <unk>, so I don't see better the challenge.
Speaker Change #105: <unk> I think we as an industry that.
Speaker Change #105: Or hired at the point of time <unk>.
Speaker Change #105: <unk>.
Speaker Change #105: <unk> more judicious and you know as we move forward.
Speaker Change #105: The modern environment.
Speaker Change #105: You don't see your channels.
Speaker Change #106: Thank you so much.
Speaker Change #107: Thank you.
Sudheer Guntupalli: The next question is from the line of Sudheer Guntupalli from Kotak Mahindra ANC. Please go ahead.
Speaker Change #108: The next question is from the line of <unk> minded at AMC. Please go ahead.
Unknown Executive: Hi Sunil, congratulations and all the best on your new image. Given that the organization had already gone through sweeping changes over the previous two to three years, certain change fatigue would have set in among the company and employees. So do you see that change fatigue as a bottleneck to be able to make any incremental changes you need and turn around the growth path, or maybe delay that growth turnaround?
AMC: I see me all the way from your new room mate.
AMC: Given that their organization had already gone through sweeping changes over the previous two three years 17 fatigue.
AMC: The company name and <unk>, <unk>, <unk>, <unk>, <unk>, <unk> or maybe <unk>.
Unknown Executive: Sunil, the advantage I have is I've been through this transformation journey right in the last four years. Clearly, in my mind, we don't need a structural change. The four SMUs and the four GBLs are good to go.
AMC: Suddenly the I'd wanted to hobbies I've been through this transformation journey like and the last four years.
AMC: Clearly in my mind, we don't need a structural change the photo somebody will send a four G. B OS is good to go what we need is the change of strategy switching.
Unknown Executive: What we need is to change our strategic priorities, which meet market dynamics, which meet the changing technology landscape, and what we need is to bring a lot more execution rigor to the markets and in the sectors and in specific accounts that we call both the large accounts for us and also the future large accounts. I think if we can execute on that, bringing in the best of our solutions, with consulting-led and AI infused, I think we can differentiate and make a difference to our clients.
AMC: Which makes the market dynamics, which makes it changing technology landscape and what they need is bringing forward it cause the Christian glucose in the market.
AMC: And the Zip.
AMC: I'm in specific account that'd be called both the logical and so forth and also the future lots of phones I think she can execute that bringing it up and all that stuff about solutions.
AMC: Right in the eye and a few.
AMC: I think we can differentiate and make a difference broke lines.
AMC: <unk> <unk> <unk> <unk> <unk> <unk> anticipated.
Aparna Iyer: Aparna and Capco, if the growth here is so strong, one would have anticipated that the company level margin expansion would be slightly higher given this is an on-site area and fixed cost heavy business. So should we assume that certain operating leverage will probably come with some amount of a lag? Yeah, you know, Sudheer, you know, Kapoor, like I said, had also Benefit offers seasonal furlough quarter of Q3, so the bounce back of Q4, the growth rate that we are talking about also was aided by that. There is a base effect to that, to yes, as the stability returns, we will see you operating.
AMC: Anticipated that the company level 19 extension there'll be slightly higher <unk> fixed cost of your business. So should we assume that that can upgrading leverage will probably come at all.
AMC: <unk>.
Speaker Change #110: Yeah, you know so for these Ah capsule like I said had also the benefits first seasonally <unk>. So the bounce back a few for the <unk>.
Speaker Change #110: Talking about auto heart was hated by <unk> excuse me, it's a visa.
Speaker Change #111: Oh, yes acceptability retarded.
Speaker Change #111: Do you ever feel.
Aparna Iyer: But for now, we are just waiting, you know, this is not something we've shared with you for two quarters. Thank you very much. We will watch for how they perform over the next few quarters, and certainly, operating leverage should play out with a lag.
Speaker Change #111: [laughter].
Speaker Change #112: Perfect for now we're just waiting you know this is not something you know what I mean, we've shared with you for two quarters.
Speaker Change #112: Given the internet.
Golf course performance, we've shared it we don't say encourage you watching it's too early to say that the reason they designated deterministic pain relief.
Speaker Change #112: Really watch for holiday for them over the next few quarters and suddenly the operating leverage should play out with a <unk>.
Sudheer Guntupalli: Thank you so much and all the best.
Sandeep Shah: The next question is from the line of Sandeep Shah from Equivalent Securities. Please go ahead. Thanks for the opportunity.
Speaker Change #113: Thank you so much for him all the best.
Thank you.
Sandeep Shah: The next question is from the line of Sandeep shop from acreage Securities. Please go ahead.
Sandeep Chopra: Yeah, <unk>, congratulations and all debates on my quest.
Sandeep Shah: My question is related to one of the questions asked by a previous participant. Most of your earlier colleagues in the CEO role have also highlighted and focused in terms of rigor on execution, but somewhere, that has not worked when improving the organic growth rates of Wipro. So, what, according to you, in your past three decades of experience at Wipro, is going wrong in the execution regard?
Sandeep: Question is related to participate.
Sandeep Chopra: Participate.
Sandeep: Most of your <unk> has also.
Sandeep: <unk> like <unk>.
So.
Sandeep: Two more according to.
Sandeep: <unk> the total is going the wrong <unk>.
Sandeep: Is it seems is it dry.
Sandeep: <unk> and.
Sandeep: This is higher and how do you plan to rectify that.
Speaker Change #117: No thanks for Sunday.
Speaker Change #118: What what I'm doing right now as we speak cause I know, they're starting my own experiences or the.
Paid it off.
Speaker Change #118: Yes, second I'm looking at all the areas across the markets, what's working and what's not working but it has to do with the law students, whether it's true with <unk> groups.
Unknown Executive: Is it delivery? Is it sales? Is it land mining? Or is it hunting? And where do you believe the weakness is, and how do you plan to rectify it?
Speaker Change #118: With the solutions and approach to each of the sectors. So what I'm doing Sunday, taking a stalk of all that why did I call the priorities right and nobody got to bring the status for a blood test that we call out to like the Christians are good on your right I don't what once you have the right to try to do the right type of account like cause I sort of Ah Ah sectors that you really want to.
Unknown Executive: While I called out the priorities, we got to bring the strategic priorities that we called out to execution, and you're right. Once you have the right strategy, the right set of accounts, the right set of sectors that you really want to focus on, then you have to be staying there for a long time, too, because some of these deals that we have won do take time. So what I want to do is have the staying power as well, to continue to execute our strategy and not change it in the midway. So we have to bring in a lot more consistency and perseverance, if you will, to win those deals and grow those accounts.
Speaker Change #118: Focus focus on video of to be staying there for time too because some of these deals February it won't be a one it does take time, so what I want to do is a Honda civic staying for Israel to continue with it cause you to a strategy not change it.
Speaker Change #118: So that if you have to bring in Darfur consistency and plus events. If you will to win votes. These days.
Speaker Change #118: Those accounts.
Unknown Executive: And if you want to define a performance API for your targets and strategy execution, what could it be, and what could the timeline be for that?
Speaker Change #118: If you wanted to find out <unk> and what would be the timeline for me Sir.
Unknown Executive: So, I don't think I have a timeline here, Sandeep. This is my second week in my new job. Let me go back and see what's going on and what we need to do. But what I'm very clear about is, you know, what the priorities that we want to execute are. And I think, you know, that's where I'm going to stay focused.
So I I don't think I have a diagnosis subject. This is my second week in my New job, Let me go.
Speaker Change #118: Go back and see what's it what's going on and what we need to do a button, what what I'm a very good et cetera, what are the priorities that we won't execute and I think that's where I'm going to stay focused on.
Unknown Executive: Okay, okay. And second, in terms of capital allocation, I think Wipro has done a fantastic job in terms of new cash flow generation. The outgoing CEO has been addressing in terms of bold M&A where capital allocation has also been fairly contributed towards the sizable M&A. Do you believe in that strategy?
Speaker Change #118: Okay.
Speaker Change #118: In terms of capital of location.
Speaker Change #118: I've done a fantastic job and Bumsucking cashflow destination.
Speaker Change #118: Going to <unk> capital of location has also said he wants the size of the Lemonade do you believe in that.
Sandeep Shah: Because in the press conference, you also said Wipro will continue to remain bold on the M&A. So when you say bold on the M&A, is it bold in terms of acquiring capability, which may not be big in terms of size? Or do you still believe we have the headroom and appetite to go for M&A similar to Capco as well as RiteAid?
Speaker Change #118: The branch confidence you also said.
Speaker Change #119: Yeah. So when you say bold on there.
Speaker Change #119: <unk> are you still believe we have all of headroom <unk>.
Aparna Iyer: I think from an M&A standpoint, you know, and I'll add an answer, and then I'll let Srini weigh in. I think we will continue to remain focused, we will be selective in the M&A that we do, we will invest in areas of newer technologies, we will invest in areas that give us access to markets, access to clients. You know, the strategy for M&A and where we will play, and how selective we will be, will remain.
Speaker Change #119: I think <unk> point, you know I I answered and then I'll, let <unk> I think we will come to you to remain focused we will be.
Speaker Change #119: Selective India. Many that we do we really invest in areas of newer technologies, revealing vaccine aliens and give us access to markets access to clients you know the Saturday on Ebony and maybe even plan how selective we will be remain on the face of the many.
Aparna Iyer: On the size of the M&A, it's too, you know, we, you know, we don't, we're not disclosing any one way. You know, we've said that we prefer tokens because, in some sense, it helps us stabilize in an environment like this. But we will remain flexible on that. And we will see what works best for our strategy. 5% of our net income over the cumulative three years. If you want to add anything, let me know.
Speaker Change #119: To you know.
Speaker Change #119: You know we don't.
Speaker Change #119: Disclosing any one way you know <unk> said that'd be preferred doctors because in some sense of taste sauce civilized in an environment like this.
Speaker Change #119: But we will remain flexible on that and needless see what works best for a strategy on capital allocation. You know there's no change to policy sent <unk> via committed to returning cash a 45% to 55% of <unk> income overdose accumulated.
Unknown Executive: I think you'll cover it. Thanks. Okay.
Sandeep Shah: Thanks. Thanks, Sandeep. Yeah. Go ahead, Sandeep.
Speaker Change #119:
Speaker Change #119: If you want.
Speaker Change #120: <unk> I think that covers it thanks, Okay <unk> Yeah go ahead.
Sandeep Shah: And the last question Aparna for you, in terms of margins, I think we have done well in terms of a difficult environment, but if I look at utilisation, if I look at offshore revenue mixed fixed price contribution, most of them have peaked out, so is it fair to assume now that further considerable margin improvement is largely dependent on growth? [inaudible] So what we've shared for now is that we are committed to remaining in All these are around three quarters of the lead.
Speaker Change #121: And the last question upper Nile for <unk>.
Bumped off the <unk>.
Speaker Change #121: But if I am a <unk> most of <unk>.
Speaker Change #121: <unk> depending <unk>.
Speaker Change #121: <unk> <unk> <unk> <unk>, 16% flat this kind of <unk>.
Speaker Change #121: First name going forward.
Speaker Change #121: So what's the shed for knowledge that'd be a committed to remaining in an Arab.
Speaker Change #121: <unk> and the last few quarters send me.
Sandeep Shah: You are right that utilization has improved considerably, and offshoring has gone up. All of that has resulted in our margins expanding. We are happy and pleased about that. We need to sustain that as we go along. There are enough and more levers for us to flex as we go forward. There is a lot more that we can do on optimizing, perhaps, G&A, especially given that there are synergies to be driven as we integrate our acquired entities deeper.
Speaker Change #121: You're right that you'd libration has been canceled give me I'd offshoring has gone up all of that has resulted in a Muslims expansion, they're happy and pleased about that we need to sustain that as we go along that are nothing more believers for us to flex as we go forward probation Donald for Sir.
Speaker Change #121: And then there's a lot more that we can do on optimizing.
Speaker Change #121: You know, perhaps N a G N E and especially given that you know that I'd say nowadays to be driven as we integrate dot acquired entity of data <unk>.
Sandeep Shah: Some of those levers will play out for us. FPP productivity is a very big lever. We are all very focused on it and the potential of how we can weave in AI. There is plenty of opportunity, and there are plenty of levers for us to work on. Those are my comments.
Speaker Change #121: So some of those <unk> for us.
Speaker Change #121: If two people are activating is a very big lever it all very focused on it and the potential of how we can you know <unk>. There is plenty of opportunity and there is plenty of plenty of liever.
Speaker Change #121: To walk on.
Aparna Iyer: Okay, thanks. Thanks and all the best. Thank you. Ladies and Gentlemen, that was the last question for today. I would now like to hand the conference back to Mr. Dipak Bohra for closing comments. Over to you. Thank you, Akshay Shree. Thank you all for joining the call. In case we could not take any questions due to time constraints.
Speaker Change #121:
Speaker Change #122: Those are my comments Sunday.
Speaker Change #122: <unk> all of it.
Speaker Change #123: Thank you.
Speaker Change #124: Ladies and gentlemen that was the last question for today I would I would like to have the conference back to Mister <unk> closing comments to yourself.
Okay. Thank you a tissue. Thank you all for joining the call in case, we could not take any questions due to time constraints.
Dipak Kumar Bohra: Please feel free to reach out to the investors.
Speaker Change #125: Please feel free to reach out to the Investor relations fee.
Dipak Kumar Bohra: Thank you so much again, and have a...
Speaker Change #126: Thank you so much again and have a nice evening.
Dipak Kumar Bohra: And have a nice evening!
Operator: Thank you, members of the management team. On behalf of Wipro Ltd, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Speaker Change #127: Thank you members of the management team.
Speaker Change #128: <unk> with the unlimited that concludes this conference. Thank you for joining US and you may now disconnect Tonight.
Speaker Change #128: [noise].