Q1 2027 Wipro Ltd Earnings Call

July 16, 2026

Speaker #1: Ladies and gentlemen, good day. 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.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, and then zero on your touchstone phone. Please note that this conference is being recorded, and the duration for today's call will be for 45 minutes.

Speaker #1: I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you.

Speaker #2: Thank you, Yesusri. Good evening and warm welcome to our Q1, FY27 earnings call. We'll begin the call with the business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed by updates on financial overview by our CFO, Aparna Iyer, we also have our CHRO, Saurabh Govil, and our Chief Strategist and Technology Officer, Hari Shetty, on this call.

Speaker #2: Afterwards, the operator will open the bridge for Q&A with our management team. Before Srini starts, let me draw your attention to the fact that during this call we may make certain forward-looking statements within the meaning of private security litigation reform act 1995.

Speaker #1: Ladies and gentlemen, Ladies and gentlemen, good day and welcome to Wipro Ltd. good day and welcome to Wipro Ltd. You are at 5:27 on this You are FY27 on important afternoon call.

Speaker #1: call. As a reminder, As a reminder, all participant lines will be in the listener all participant lines will be in the listener remote, and they will be an opportunity for remote, and there will be an opportunity for you to ask questions after the you to ask questions after the presentation concludes.

Speaker #2: These statements are based on management's current expectations and are associated with uncertainties and risk, which may cause the actual results to differ materially from those expected.

Speaker #1: Should you presentation concludes. Should you need need assistance during the conference call, please assistance during the conference call, please signal an operator by pressing star, signal an operator by pressing star, and then zero on your desktop and then zero on your desktop phone.

Speaker #2: The uncertainties and risk factors are explained in a detailed findings with the SEC. Wipro does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing.

Speaker #1: Please note that this conference is phone. Please note that this conference is being recorded, and the duration for being recorded, and the duration for today's call will be for 45 today's call will be for 45 minutes.

Speaker #2: The conference call will be archived and a transcript will be available on our website. With that, I would like to turn over the call to Srini.

Speaker #1: minutes. I now hand the conference over to Mr. Abhishek Jain, conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer Vice President, Corporate Treasurer and and Head of Investor Relations.

Speaker #1: Thank you, Head of Investor Relations. Thank you, and over to you. Over to you.

Speaker #3: Thank you, Abhishek. Good evening, everyone. Thank you for joining us today. Let me start with a quick view of the broader market. The macro environment remains resilient.

Speaker #2: Thank Thank you, Yashashree. Good you, Yashashree. Good evening evening and warm welcome to our Q1, and warm welcome to our Q1, FY27 FY27 earnings call.

Speaker #2: earnings call. We'll begin the We'll begin the call with the business highlights and call with the business highlights and overview overview by Srinivas Pallia, our Chief Executive by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed Officer and Managing Director, followed by by updates on financial overview by our updates on financial overview by our CFO, Aparna Iyer, we also CFO, Aparna Iyer.

Speaker #3: But uncertainty continues to shape decision-making. Technology investment has not slowed. They have become more focused. Clients continue to invest in AI, data, cloud, modernization.

Speaker #2: We also have have our CHRO, Sarav Govil, and our our CHRO, Saurav Govil, and our Chief Strategist and Chief Strategist and Technology Technology Officer, Harish Shetty, on this Officer, Harish Shetty, on this call.

Speaker #2: Afterwards, the operator will open the bridge call. Afterwards, the operator will open the bridge for Q&A with our management for Q&A with our management team.

Speaker #2: Before Srinivas starts, let me draw team. Before Srini starts, let me draw your your attention to the fact that during this attention to the fact that during this call, we may make certain forward-looking call, we may make certain forward-looking statements statements within the meaning of private within the meaning of private security litigation reform Act security litigation reform Act 1995.

Speaker #2: These statements are based on These statements are based on management's management's current expectations and are associated with current expectations and are associated with uncertainties and risks which may uncertainties and risks which may cause cause the actual results to differ materially the actual results to differ materially from from those expected.

Speaker #3: Cybersecurity, and productivity-led transformation. Spending today is measured with more rigor, and longer decision cycles. The AI disruption is expanding the market, not shrinking it.

Speaker #2: The uncertainties The uncertainties and risk factors are explained in a detailed and risk factors are explained in a detailed filing with the SEC. Wipro filing with the SEC.

Speaker #2: Wipro does not undertake any obligation to update the does not undertake any obligation to update the forward-looking statements to reflect forward-looking statements to reflect events and circumstances after the date of events and circumstances after the date of filing.

Speaker #3: At the same time, conversations around AI are becoming more intense. As the tokenization landscape evolves, clients are focused on net productivity, and require a tighter linkage between investment and outcomes.

Speaker #2: filing. The conference call will be archived and The conference call will be archived and a transcript will be available on our a transcript will be available on our website.

Speaker #2: filing. The conference call will be archived and The conference call will be archived and a transcript will be available on our a transcript will be available on our website. website.

Speaker #2: With that, I would like to turn over the call to With that, I would like to turn over the call to Srinivas. Thank you, Srini.

Speaker #2: Thank you, Abhishek. Abhishek.

Speaker #3: Good evening, Good evening, everyone. Thank you for everyone. Thank you for joining joining us us today. Let me start with a quick today. Let me start with a quick view of the broader view of the broader market.

Speaker #3: The macro environment market. The macro environment remains remains resilient. But uncertainty resilient. But uncertainty continues to shape continues to shape decision-making. decision-making. Technology investment has not Technology investment has not slowed.

Speaker #3: Despite selective client spending, our pipeline remains healthy. We continue to see strong engagement across our markets and industries. We are executing a consulting-led AI-powered strategy to help our clients reimagine and redesign their enterprise around intelligence.

Speaker #3: They have become They have become more more focused. Clients continue focused. Clients continue to invest in to invest in AI, data, AI, data, cloud, cloud, modernization.

Speaker #3: Cybersecurity, and modernization. Cybersecurity, and productivity-led productivity-led led transformation. Spending today is measured transformation. Spending today is measured with more rigor, and with more rigor, and longer decision longer decision cycles.

Speaker #3: With that, I'll now share our financial performance. All numbers are in constant currency. Our IT services revenue for Q1 was $2.61 billion, up 0.9% year on year.

Speaker #3: cycles. The AI disruption is The AI disruption is expanding expanding the market, not shrinking the market, not shrinking it. At the same it. At the same time, conversations around time, conversations around AI are becoming AI are becoming more more intense.

Speaker #3: And down 1.2% sequentially. Our IT services margin was 16%, a 1.2% decline year on year. In our markets, America's remains soft, declining both sequentially and on a year-on-year basis.

Speaker #3: As the intense. As the tokenization landscape tokenization landscape evolves, clients are focused evolves, clients are focused on net on net productivity, and require productivity, and require a tighter linkage a tighter linkage between investment and between investment and outcomes.

Speaker #3: outcomes. Despite selective Despite selective client spending, our client spending, our pipeline remains pipeline remains healthy. We continue to see strong healthy. We continue to see strong engagement across our engagement across our market and market and industries.

Speaker #3: We continue to see momentum in technology and communications, sector, and some good wins in the consumer sector. As we move into Q2, we're also seeing momentum build-up in BSSI.

Speaker #3: industries. We are We are executing a consulting-led executing a consulting-led AI-powered strategy to AI-powered strategy to help our clients help our clients reimagine and reimagine and redesign their enterprise around redesign their enterprise around intelligence.

Speaker #3: Apnea's revenue grew sequentially and on a year-on-year basis. We are encouraged by the momentum we continue to see in this market. Particularly in the BSSI and consumer sectors.

Speaker #3: With intelligence. With that, I'll now share our that, I'll now share our financial financial performance. All numbers are performance. All numbers are in in constant constant currency.

Speaker #3: Our IT currency. Our IT services revenue for services revenue for Q1 was $2.61 Q1 was $2.61 billion, up billion, up 0.9% year on year.

Speaker #3: Our Europe SMU grew year-on-year with strong traction in BSSI, technology and communications. However, energy manufacturing and resources remains soft. We see a healthy pipeline across various regions in Europe, such as UK and Nordics.

Speaker #3: 0.9% year on year. And down And down 1.2% 1.2% sequentially. Our IT services sequentially. Our IT services margin was margin was 16%, a 16%, a 1.2% decline year on 1.2% decline year on year.

Speaker #3: During the quarter, order booking total $3.4 billion, and large-scale bookings total $1.6 billion. Our order booking includes 13 large deals this quarter. Let me highlight two of these deal wins.

Speaker #3: In our In our market, market, America remains soft, declining America remains soft, declining both sequentially and on a both sequentially and on a year-on-year year-on-year basis.

Speaker #3: basis. We continue to see We continue to see momentum in technology and momentum in technology and communications, sector, and some communications sector, and some good winds in the consumer good winds in the consumer sector.

Speaker #3: sector. As we move into Q2, As we move into Q2, we're also seeing momentum build up in we're also seeing momentum build up in wafer wafer science. science.

Speaker #3: sector. As we move into Q2, As we move into Q2, we're also seeing momentum build up in we're also seeing momentum build up in wafer wafer science.

Speaker #3: Apnea's revenue grew sequentially and Apnea's revenue grew sequentially and on on a year-on-year a year-on-year basis. We are encouraged basis. We are encouraged by by the momentum we continue to the momentum we continue to see see in this in this market.

Speaker #3: A leading global animal healthcare provider, selected us to modernize and manage digital operations across their global network of hospitals and clinics. Using Wipro Intelligence, we will help transform service operations improve productivity, and enable predictive issue prevention.

Speaker #3: Particularly in the wafer science and consumer science and consumer sectors. Our sectors. Our Europe SMU grew Europe SMU grew year-on-year with year-on-year with strong strong traction in wafer science, traction in wafer science, technology, and technology and communications.

Speaker #3: However, energy manufacturing and However, energy manufacturing and resources resources remain remains soft. We see a healthy soft. We see a healthy pipeline across various regions in pipeline across various regions in Europe such as UK and Europe, such as UK and Nordics.

Speaker #3: We are helping a client create a more autonomous technology environment. The goal is to improve experiences for clinical teams, employees, and customers while increasing operational rigor.

Speaker #3: During the During the quarter, order booking quarter, order booking total 3.4 billion dollars total 3.4 billion dollars and large-scale bookings and large-scale bookings total 1.6 billion total 1.6 billion dollars.

Speaker #3: In our second deal win, a leading European specialty chemicals company, chose us to run and transform their complex application landscape. Leveraging AI-led capabilities, through Wings, part of our Wipro Intelligence.

Speaker #3: Our dollars. Our order booking includes 13 order booking includes 13 large-scale this large-scale this quarter. quarter. Let Let me highlight two of me highlight two of these deal these deal wins.

Speaker #3: wins. A leading global animal healthcare A leading global animal healthcare provider, selected us to provider, selected us to modernize and manage modernize and manage digital operations digital operations across across their global network their global network of hospitals and of hospitals and clinics.

Speaker #3: Excuse me. We will automate operations improve delivery efficiency, and provide greater visibility through an AI-powered digital command center. The outcome here will be elevated service quality, higher productivity, and lower operating costs.

Speaker #3: Using Using Wipro Intelligence, Wipro Intelligence, we we will help transform service will help transform service operations operations improve productivity, and improve productivity and enable predictive issue enable predictive issue prevention.

Speaker #3: We are helping the prevention. We are helping the clients create a more clients create a more autonomous technology autonomous technology environment. The goal environment.

Speaker #3: Across markets and industries, we are helping clients reimagine operations, by embedding AI at the core of their business, spanning both physical and digital worlds.

Speaker #3: The goal is to improve is to improve experiences for clinical experiences for clinical teams, teams, employees, and employees, and customers while customers while increasing operational increasing operational rigor.

Speaker #3: rigor. In our In our second deal second deal win, a leading European specialty win, a leading European specialty chemicals company chemicals company, chose us to run and chose us to run and transform their complex transform their complex application application landscape.

Speaker #3: In this context, let me share some examples of the work we are already doing with clients. One, for a global industrial manufacturer, we are reimagining finance and procurement through our Wings platform.

Speaker #3: landscape. Leveraging Leveraging AI-led capabilities AI-led capabilities, through through wind, part of our Wipro which part of our Wipro Intelligence excuse Intelligence, excuse me, we will automate me, we will automate operations operations improve delivery improve delivery efficiency, and provide greater efficiency, and provide greater visibility through an visibility through an AI-powered digital AI-powered digital command command center.

Speaker #3: Combining agentic AI, intelligent orchestration, real-time analytics, and AI-powered knowledge management to create a highly automated operating model. In my second example, with one of our healthcare clients, we are deploying multi-agent AI systems reducing provider enrollment processing times up to 70%, while automating their manual effort up to 90%.

Speaker #3: The outcome here center. The outcome here will be elevated service will be elevated service quality, higher quality, higher productivity, and productivity, and lower operating lower operating costs.

Speaker #3: costs. Across Across markets and industries, we are markets and industries, we are helping helping clients clients reimagine operations by reimagine operations by embedding AI at the core of embedding AI at the core of their their business, business, spanning both physical spanning both physical and digital and digital worlds.

Speaker #3: In worlds. In this context, let me this context, let me share some examples of share some examples of the work we the work we are are already doing with already doing with clients.

Speaker #3: We for a leading global technology company, we are improving the quality reasoning and safety of their next-generation AI models through expert-led data creation and AI evaluation.

Speaker #3: clients. One, for a One for a global industrial global industrial manufacturer, we are manufacturer we are reimagining reimagining finance and procurement finance and procurement through our wind through our Wings platform.

Speaker #3: This is delivering significant gains in model accuracy and reasoning capability. With a life sciences client, our Wings platform, it transforming pharma coincidence from a document-centric labor-intensive process into an AI-native safety operation.

Speaker #3: platform. Combining Combining agentic AI, agentic AI, intelligent intelligent orchestration, real-time orchestration, real-time analytics, analytics, and AI-powered knowledge and AI-powered knowledge management to create management to create a highly automated a highly automated operating operating model.

Speaker #3: This is powered by autonomous agents and regulatory grid-grade workflows. For a global energy leader, we are defining their enterprise robotics strategy and roadmap for physical AI-enabled autonomous operations.

Speaker #3: In my second In my second example, with one of our example, with one of our healthcare healthcare clients, we are clients, we are deploying multi-agent AI deploying multi-agent AI systems systems reducing reducing provider enrollment processing provider enrollment processing times up to times up to 70%, while 70%, while automating their manual effort up to automating their manual effort up to 90%.

Speaker #3: Three, for 90%. Free for a a leading global technology leading global technology company, we are improving company, we are improving the quality the quality reasoning and safety reasoning and safety of of their next-generation AI their next-generation AI models through models through expert-led data expert-led data creation and AI creation and AI evaluation.

Speaker #3: Collectively, these engagements demonstrate the breadth of Wipro's AI capabilities from strategy and advisory to domain-specific solutions. And the wins that I talked about also reflect a broader shift in enterprise priorities.

Speaker #3: In fact, interestingly today, clients are looking beyond technology modernization alone. The focus is moving towards AI-enabled operating models that improve service quality, reduce operational complexity, strengthen resilience, and unlock sustainable productivity gains.

Speaker #3: evaluation. This is This is delivering significant gains in delivering significant gains in model accuracy and reasoning model accuracy and reasoning capability. With a life capability.

Speaker #3: With a life sciences client, sciences client, our our wind platform, a Wings platform is transforming pharma covigilance from a transforming pharmacovigilance from a document-centric document-centric, labor-intensive process into an labor-intensive process into an AI-native safety AI-native safety operation.

Speaker #3: This is This is powered by autonomous agents powered by autonomous agent and regulatory grid grid workflows. For a global workflows. For a global energy leader, we are energy leader, we are defining defining their enterprise robotics their enterprise robotics strategy and roadmap strategy and roadmap for physical for physical AI-enabled autonomous AI-enabled autonomous operations.

Speaker #3: And this is where we are well positioned. Let me now share a few additional updates. During the quarter, we closed the acquisition of MindSprint and quickly transitioned from integration planning to execution.

Speaker #3: operations. Collectively, Collectively, these engagements these engagements demonstrate demonstrate the breadth of Wipro's AI the breadth of Wipro's AI capabilities from strategy capabilities from strategy and and advisory to advisory to domain-specific domain-specific solutions.

Speaker #3: While we continue to deepen our relationship with OLAM Group, we have also started to see good opportunities in the food and agricultural sector. You may recall last quarter, we launched AI-native business and platforms unit.

Speaker #3: And the wins that solutions. And the wins that I I talked about also talked about also reflect a broader shift reflect a broader shift in enterprise in enterprise priorities.

Speaker #3: In fact, priorities. In fact, interestingly today, clients are interestingly today, clients are looking beyond technology looking beyond technology modernization modernization alone. alone. The The focus is moving towards focus is moving towards AI-enabled operating AI-enabled operating models that improve service models that improve service quality, reduce quality, reduce operational complexity, operational complexity, strengthen resilience, and strengthen resilience, and unlock sustainable unlock sustainable productivity productivity gains.

Speaker #3: Since then, we have moved decisively from strategy to execution. We are building multiple AI-powered industry platforms developing new AI-native business models and forging strong partnerships across the AI ecosystem.

Speaker #3: And this is gains. And this is where we are well where we are well positioned. Let me now positioned. Let me now share a few additional share a few additional updates.

Speaker #3: We have laid the foundation to strengthen the team with specialized AI-native leadership talent. And define our roadmap to establish clear priorities for the next phase of growth.

Speaker #3: During the quarter, we closed the acquisition of MindSprint and quickly transitioned from integration planning to execution. While we continue to deepen our relationship with Olam Group, we have also started to seek good opportunities in the food sector. During the quarter, we closed the acquisition of MindSprint and quickly transitioned from integration planning to execution.

Speaker #3: As you would have been aware, we recently launched Applied AI Center of Excellence for Claude models powered by Anthropic. This strengthens our ability to help clients rapidly adopt frontier AI capabilities while maintaining enterprise-grade controls and governance.

Speaker #3: While we continue to deepen our relationship with Olam Group, we have also started to see good opportunities in the food and agriculture sector.

Speaker #3: sector. You may recall last You may recall last quarter, quarter, we we launched launched AI-native business and platform AI-native business and platform creator. Since creator.

Speaker #3: CAPCO, our PFSI consulting arm, won the AI Governance and Risk Excellence Award at the OpenAI Partner Summit. And our UK AI Lab won the OpenAI Codex Hackathon for an AI-powered banking solution.

Speaker #3: Since then, we have moved then, we have moved decisively from decisively from strategy to strategy to execution. execution. We are building We are building multiple AI-powered industry multiple AI-powered industry platforms developing platforms developing new AI-native business new AI-native business models and forging models and forging strong partnerships across strong partnerships across the AI the AI ecosystem.

Speaker #3: With that, let me shift focus to the next quarter. In Q2, we are guiding for a sequential growth of minus 1.5% to plus 0.5% in constant currency terms.

Speaker #3: We have laid We have the foundation to laid the foundation to strengthen the team with strengthen the team with specialized AI-native leadership specialized AI-native leadership talent.

Speaker #3: And defined our talent. And defined our roadmap to establish roadmap to establish clear priorities for the next clear priorities for the next phase of phase of growth.

Speaker #3: And defined our talent. And defined our roadmap to establish roadmap to establish clear priorities for the next clear priorities for the next phase of phase of growth. growth.

Speaker #3: As you have As you have been aware, we recently been aware, we recently launched Applied AI Center of launched Applied AI Center of Excellence for broad Excellence for broad models powered by models powered by Anthropic.

Speaker #3: As we continue to navigate macro uncertainty and geopolitical instability, our priorities remain disciplined in execution. Helping clients navigate complexity and creating sustainable value for all our stakeholders.

Speaker #3: Anthropic. This strengthens This strengthens our ability to help our ability to help clients rapidly adopt clients rapidly adopt frontier AI frontier AI capabilities while maintaining capabilities while maintaining enterprise-grade control and enterprise-grade control and governance.

Speaker #3: With that, let me hand it over to Aparna to share financial performance in more detail. Thank you.

Speaker #3: CAPCO, CAPCO, our future-sight consulting our future-sight consulting arm, won the AI Governance and arm, won the AI Governance and Risk Excellence Award at Risk Excellence Award at the OpenAI Auto the OpenAI Auto Summit. Summit.

Speaker #2: Thank you, Srini. Good evening, everybody, and thank you for joining us. Let me share a quick update on the financial performance, and then we can open our Q4 questions.

Speaker #3: And And our UK AI Lab won our UK AI Lab won the OpenAI Codex the OpenAI Codex Hackathon Hackathon for an AI-powered banking for an AI-powered banking solution.

Speaker #3: And And our UK AI Lab won our UK AI Lab won the OpenAI Codex the OpenAI Codex Hackathon Hackathon for an AI-powered banking for an AI-powered banking solution. solution.

Speaker #2: Our IT services revenues grew 0.9% year on year on constant currency, while declining 1.2% sequentially. This is well within our guided range. Our operating margins for the quarter were 16%.

Speaker #3: With With that, let me shift that, let me shift focus to the next focus to the next quarter. In quarter. In quarter two, we are guiding quarter two, we are guiding for a sequential growth of for a sequential growth of minus minors 1.5% to plus 1.5% to plus 0.5% in constant 0.5% in constant currency currency terms.

Speaker #2: We declined 1.2% year on year. The reasons are because of the incremental impact of salary increase, ramp-up of large deals won earlier, and our ongoing investments in AI.

Speaker #3: As we continue to navigate a macro uncertainty and geopolitical and geopolitical instability, our instability, our priorities remain disciplined priorities remain disciplined in in execution.

Speaker #2: This was partially offset by the rupee depreciation benefits that we order operational efficiencies. We remain focused on returning back to our previously stated narrow band.

Speaker #3: execution. Helping clients Helping clients navigate complexity navigate complexity and creating sustainable and creating sustainable value for all our value for all our stakeholders. With that, stakeholders.

Speaker #2: Net income for the quarter was 33.6 billion. Our EPS for the quarter was 3.2 rupees, both grew 0.6% year on year. Moving on to our SMU and sector performance, all the growth numbers that I will share will be on constant currency.

Speaker #3: With that, let me hand it over to Aparna to share let me hand it over to Aparna to share financial performance in more financial performance in more detail.

Speaker #3: detail. Thank Thank you.

Speaker #2: Thank you, Thank you, Srini. Good evening, everybody, and thank you for Srini. Good evening, everybody, and thank you for joining us. Let me share a joining us.

Speaker #2: A1 was flattish year on year, while declining 2.3% sequentially. America's 2 declined 7.3% year on year, and 2.5% declined sequentially. Europe grew 6% on a year-on-year basis.

Speaker #2: Let me share a quick update on the financial performance, and quick update on the financial performance, and then then we can open our we can open our Q4 questions.

Speaker #2: Let me share a quick update on the financial performance, and quick update on the financial performance, and then then we can open our we can open our Q4 questions. Q4 questions.

Speaker #2: For IT For IT services revenue, grew 0.9% services revenue, grew 0.9% year-on-year and got some currency. year-on-year and got some currency. While declining While declining 1.2%.

Speaker #2: For IT For IT services revenue, grew 0.9% services revenue, grew 0.9% year-on-year and got some currency. year-on-year and got some currency. While declining While declining 1.2%. 1.2%, see question 2.

Speaker #2: While declining 0.9% sequentially. Apnea grew 13.5% on a year-on-year basis and grew 4.4% sequentially. Moving on to sector performance, BFSI grew 2.6% on a year-on-year basis, while declining 1.2% sequentially.

Speaker #2: This See question 2. This is well within our guided is well within our guided range. Our operating margin for the quarter was range. Our operating margin for the quarter was 15%.

Speaker #2: This See question 2. This is well within our guided is well within our guided range. Our operating margin for the quarter was range. Our operating margin for the quarter was 15%. 15%.

Speaker #2: We We declined 1.2% declined 1.2% year-on-year. year-on-year. The reasons are The reasons are because of the incremental impact of salary because of the incremental impact of salary increase, ramp-up of large dues won increase, ramp-up of large dues won earlier, and our ongoing earlier, and our ongoing investments in AI.

Speaker #2: Consumer grew 1.9% year on year and 0.7% growth sequentially. Technology and communication grew 10.8% on a year-on-year basis. And grew 0.2% sequentially. Health declined 2.6% sequentially and 3.0% year on year.

Speaker #2: operational efficiencies. We remain focused on returning back to We remain focused on returning back to our previously stated narrow our previously stated narrow band.

Speaker #2: operational efficiencies. We remain focused on returning back to We remain focused on returning back to our previously stated narrow our previously stated narrow band. band.

Speaker #2: This was investments in AI. This was partially offset by the routine partially offset by the routine depreciation benefits and the other depreciation benefits and the other operational efficiencies.

Speaker #2: Net income for the quarter was 32.6 billion, our EPS for the 32.6 billion, our EPS for the quarter was 2.2 rupees, both quarter was 2.2 rupees, both grew 0.6% grew 0.6% year-on-year.

Speaker #2: Net income for the quarter was 32.6 billion, our EPS for the 32.6 billion, our EPS for the quarter was 2.2 rupees, both quarter was 2.2 rupees, both grew 0.6% grew 0.6% year-on-year. year-on-year.

Speaker #2: EMR also declined 3.6% sequentially and 8.9% year on year. Our operating cash flow stood at 98% of net income for Q1. Our gross cash, including investments, was at 4.3 billion dollars.

Speaker #2: Moving on to our SMU and sector performance, all the SMU and sector performance, all the growth numbers that I will share will be done from growth numbers that I will share will be done from some some currency.

Speaker #2: currency. A1 A1 was flattened year-on-year, was flatted year-on-year, while declining 2.3% while declining 2.3% sequentially. America's 2 sequentially. America's 2 declined declined 7.3% year-on-year, and 7.3% year-on-year and 2.5% declined 2.5% declined sequentially.

Speaker #2: Accounting yield for the average investment held in India was stable at 7.2%. Our ETR was at 22.6% for Q1 versus 21.6% in the same time last year.

Speaker #2: Europe grew 6% on a sequentially. Europe grew 6% on a year-on-year basis, while declining year-on-year basis, while declining 0.9% sequentially. 0.9% sequentially. Apnea grew Apnea grew 13.5% on a year-on-year basis, and 13.5% on a year-on-year basis and grew 4.4% grew 4.4% sequentially.

Speaker #2: In terms of the guidance, to reiterate what was stated by Srini, our IT services business segment was expected to be in the range of 2.574 billion dollars to 2.627 billion dollars.

Speaker #2: sequentially. Moving on to sector performance, Moving on to sector performance, DFSI grew 2.6% on BFSI grew 2.6% on a year-on-year basis, while a year-on-year basis, while declining 1.2% sequentially.

Speaker #2: Consumer grew Consumer grew 1.9% year-on-year, and 1.9% year-on-year and 0.7% growth 0.7% growth sequentially. Technology and sequentially. Technology and communication grew 10.8% on a communication grew 10.8% on a year-on-year basis, and grew year-on-year basis, and grew 0.2% 0.2% sequentially. sequentially.

Speaker #2: This translates to a sequential guidance of minus 1.5% to a plus 0.5% in constant currency terms. Lastly, in the recently concluded board meeting, our board of directors have declared an interim dividend of 2 rupees.

Speaker #2: Health declined 2.6% declined 2.6% sequentially, and 2.0% sequentially and 2.0% year-on-year. EMR year-on-year. EMR also declined 3.6% also declined 3.6% sequentially and 8.9% sequentially, and 8.9% year-on-year.

Speaker #2: Including this dividend, our payouts in the last one year we would be returning in excess of 3 billion dollars in terms of the cash back to shareholders.

Speaker #2: With this, we can open up for Q&A.

Speaker #2: Our operating cash flow stood at Our operating cash flow stood at 98% of net income for quarter one. Our gross cash, including investments, was at.

Speaker #1: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone.

Speaker #2: 98% of net income for quarter one. Our gross cash, including investments, was at—.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment. While the question queue assembles. We'll take our first question from the line of Ravi Menon from Axis Capital.

Speaker #1: Please go ahead.

Speaker #3: Hi. Thank you for the opportunity. Aparna, a little surprised that you have added headcount, despite the guidance that implies sequential decline attrition still seems to be well under control.

Speaker #3: Utilization has also come off slightly cot on cotter. So why add headcount now when you're still looking at a decline in revenue next quarter?

Speaker #2: Our headcount also includes the people who joined us from the Mindsprint team, Ravi. If you exclude that, our headcount has actually gone down quarter on quarter.

Speaker #2: And our guidance, of course, includes the revenues from Mindsprint completely in Q2.

Speaker #3: Just to add, outside of Mindsprint, our headcount has actually gone down by 2.5.

Speaker #2: 2.5 thousand people. That's what it's been.

Speaker #3: Right. Thank you. And if we need in BFSI, most of our peers seem to be doing well. And you also spoke of how things seem to be looking up there.

Speaker #3: But this quarter, then, we had a decline in the client specific issue and this is something that you expect to maybe hold us back a little bit in Q2 as well, or do you think BFSI comes back to growth?

Speaker #4: So Ravi, hi Ravi. Srini here. So as far as the BFSI sector is concerned, specifically for us, Ravi, if you're seeing we did see a year-on-year growth of 2.6% in constant terms.

Speaker #4: However, the sector declined 1.2% sequentially. Now, if I were to give a little bit of a color in terms of how the sector has performed, Europe and Apnea Ravi, actually, year on year, we have seen a growth.

Speaker #4: In fact, Europe, BFSI growth was led by ramp-up of the large deal we had announced earlier. And if I were to look at Apnea, we continue to see very good traction with both in terms of ramp-ups and also existing deals and the new deal wins that we have seen.

Speaker #4: I also want to call out that we see good momentum in the BFSI in America as well. So net-net yes, I agree with your comment.

Speaker #4: And having said that, we are also seeing good traction for us as well, Ravi.

Speaker #3: Thanks, Srini. We appreciate that. So we can look at this as maybe one-off client incidents, something like that. Is there any cutback or did you lose out on any vendor consolidation?

Speaker #3: Could you comment on what caused the decline this quarter?

Speaker #4: See, there are two aspects, Ravi. One is clearly some of the largest that we have undertaken a lot more time for us to ramp up.

Speaker #4: I think now the clients are moving. That's the reason why I said BFSI America is because we have won a couple of deals out, large deals out there.

Speaker #4: Some of them are coming back. The second one is the nature of the demand. Discretionary spend has been slower. And some of the decision-making has been slower.

Speaker #4: But we think it will come back. One thing that we are seeing while from a customer perspective, in the BFSI sector, there are two a couple of opportunities that we see, Ravi.

Speaker #4: One is on the cost optimization and vendor consolidation. That remains the key drivers for our clients, right? And this is very similar to the commentary that we gave in the last few quarters.

Speaker #4: However, Ravi, what we are now seeing is that these savings are getting reinvested by some of our clients into AI capabilities. And that's where I think the new transformation projects and discretionary spend will come back.

Speaker #4: That's how we see it, Ravi.

Speaker #3: Thank you, Ravi. One last question, Ravi. On AI, your couple of peers have announced very different strategies. One setting up a very large data center, someone else is looking at a small capacity data center, which they think they will, but they will own the entire hardware stack.

Speaker #3: Anything that you're thinking among those clients?

Speaker #4: So Ravi, one is I think at a macro level, the way we see is that AI is a structural opportunity for us and for the industry in general, Ravi.

Speaker #4: Having said that, the success in AI, to be honest, is not just driven by models, right? For us, having the client context understanding the domain and the industry aspect of it, understanding the process, right?

Speaker #4: One is on cost optimization and vendor consolidation. That remains a key driver for our clients, right? And, you know, this is very similar to the commentary that we gave in the last few quarters.

Speaker #4: And priming the data for an AI implementation becomes very critical. And also, clients are looking at security and change management, operational change management in this context.

Speaker #4: However, Ravi, what we are now seeing is that these savings are getting reinvested by some of our clients into AI capabilities. And that's where I think, you know, the new transformation projects and discretionary spend will come back.

Speaker #4: So that is where I would say that the direction that AI is moving on. And for us, Ravi, very clearly, we have pivoted to AI.

Speaker #4: That's how we see it, Ravi.

Speaker #3: Thank you, Ravi. One last question, Ravi. You know, on AI, a couple of your peers have announced very different strategies. One is setting up, you know, very big, large data centers. Someone else is looking at a small-capacity data center, which they think, you know, they will—but they will own the entire hardware stack.

Speaker #4: And we are doing an AI-first approach. And our consulting-led AI-powered strategy is all about that. So when you are doing a run aspect of it, which is application management, infrastructure, or process, we are doing with AI-first approach.

Speaker #3: Anything that you're thinking among those clients?

Speaker #4: And we are clearly built a strong platform around Wings, which we are gaining very good traction, which is our delivery platform. And the second thing, Ravi, obviously, you're listening to a lot of commentary around that.

Speaker #4: So, Ravi, you know, one is, I think, at a macro level, the way we see it is that AI is a structural opportunity for us and for the industry in general.

Speaker #4: Ravi, having said that, the success in AI, you know, to be honest, is not just driven by models, right? For us, having the client context understanding the domain and the industry aspect of it, understanding the process, right, and the, you know, priming the data for an AI implementation becomes very critical.

Speaker #4: The software development lifecycle. There's a dramatic improvement in productivity. Now, that's we have to have the context of if it's a pure play greenfield project, which is like a tool, like a, let's say, Python, the productivity is significantly higher.

Speaker #4: But on the other end of the spectrum, it is a complex code. And if you don't have the right target environment, which is a lot more legacy, deployment, and production also becomes difficult.

Speaker #4: And also, you know, clients are looking at security and change management—operational change management in this context. So that is where I would say that, you know, the direction that AI is moving in.

Speaker #4: There, the productivity comes down significantly. And so that's how we see it. But for us, the biggest opportunity is all the new AI services that we are seeing in the market.

Speaker #4: And for us, Ravi, you know, very clearly, we have pivoted to AI. And, you know, we are doing an AI-first approach. And our consulting-led, you know, AI-powered strategy is all about that.

Speaker #4: Now, we call that as reimagine AI. Now, I think it's very important also what we are trying to do. Maybe I'll double-click later. But we have clearly created the AI native unit, which I talked about, where we are building the industry and cross-industry platforms.

Speaker #4: So, when you are doing a run aspect of it, which is application management, infrastructure, or process, we are doing it with an AI-first approach.

Speaker #4: And we have clearly built a, you know, a strong platform around Wings, which we are tracking, which is our delivery platform. And the second thing, you know, Ravi, obviously, you know, listening to a lot of commentary around that, the software development lifecycle, there’s a dramatic improvement in productivity.

Speaker #4: In fact, some of the margin dilution that you the question that was asked, we are investing in this. I think it's very important for us to invest for the future.

Speaker #4: So that's number one. AI native unit. Second, we have the half a billion dollar Wipro venture. And now we're very specifically focusedly targeting those AI and data and security startups, which will also enhance our overall Wipro intelligence platform.

Speaker #4: Now, that's the-- you know, we have to have the context of if it's a pure-play greenfield project, which is like a tool, like, let's say, Python, the productivity is significantly higher.

Speaker #4: But on the other end of the spectrum, it is a complex code. And, you know, if you don't have the right, you know, target environment, which is a lot more legacy, deployment, and production also becomes difficult.

Speaker #4: Three, we invested in our Wipro innovation network. We actually launched 10 innovation networks for our clients. And that actually picking up the clients are co-innovating with us in those innovation networks.

Speaker #4: There, the productivity, you know, comes down significantly. And so that's how we see it. But for us, the biggest opportunity is all the new AI services that we are seeing in the market.

Speaker #4: And finally, ecosystem partnering with the Frontier AI company. So this is how we are driving AI across our industries. And each industry are different in terms of adoption.

Speaker #4: Now, we call that reimagine AI. Now, I think it's very important—also, you know, what we are trying to do. Maybe I'll double-click later, but we have clearly created the AI native unit, which I talked about, where we are building the industry and cross-industry platforms.

Speaker #4: But everyone wants to be in the AI journey, Ravi.

Speaker #3: Srinivas, we heard I have one more thing. When you said that there is not much productive benefit in the old complex code. So then can we say there is all the investor concern about significant erosion of the existing book of business?

Speaker #4: In fact, some of the, you know, margin dilution that you talk—you know, the question that was asked—we are investing in this. I think it's very important for us to invest for the future.

Speaker #3: Can we say that this is really unfounded?

Speaker #4: So the way I see it, Ravi, is that I'm looking at for the industry and for Wipro, right? What are the like I said, what are the structural opportunities?

Speaker #4: So that's number one, AI native unit. Second, you know, we have the half-a-billion-dollar Wipro Ventures. And now we're very specifically, focusedly targeting those AI and data and, you know, security startups, which will also enhance our overall Wipro Intelligence Platform.

Speaker #4: Today, if you look at the traction that we have on the reimagine AI services, that's how I call them. New AI services. One, AI advisory and change management.

Speaker #4: That's something that, for example, Capco is leading it. OpenAI gave us an award around that. Second is data priming for AI, right? If you don't have the right and enterprises are struggling with data.

Speaker #4: Third, we invested in our Wipro innovation network. We actually launched 10 innovation networks for our clients, and that's actually picking up—the clients are co-innovating with us in those innovation networks.

Speaker #4: And finally, you know, ecosystem partnering with the frontier AI companies. So this is how we are driving AI across our industries. And each industry is different in terms of adoption.

Speaker #4: We have to be honest about that. Some enterprises have told us, "We've got too much of data. We don't know whether to do we need all this data to get the AI right?" Third is agent implementation and managing agents.

Speaker #4: Every organization is building tremendous number of agents. How do you deploy them? How do you orchestrate? Deploy and manage them. And Ravi, the tokenization, token economics, whatever you call it, is going it actually is skyrocketing right now.

Speaker #4: But everyone wants to be on the AI journey, Ravi.

Speaker #3: Srini, I'm really sorry, but I have one more thing. When you said that there is not much productivity benefit in the, you know, the old complex code.

Speaker #3: So then, can we say that all the investor concern about significant, you know, erosion of the existing book of business—can we say that this is really unfounded?

Speaker #4: So especially the CFOs are saying, "Hey, what's my ROI?" So do I use a high-end LLM for a particular process or a workflow? Do I use an open-source model?

Speaker #4: So the way I see it, Ravi, is that, you know, I'm looking at, for the industry and for Wipro, right, what are the, like I said, structural—what are the structural opportunities?

Speaker #4: So that's a conversation that's going on. We having the deep tech, we are able to actually have that conversation with the client. So there are multiple new opportunities, whether it's model ops, AIDCs is something that's picking up with an enterprises.

Speaker #4: Today, if you look at the traction that we have on the reimagine AI services—that's how I call them, you know, new AI services.

Speaker #4: One, AI advisory and change management. That's something that, you know, for example, Capco is, Capco is leading it, you know, OpenAI gave us an award around that.

Speaker #4: You would have heard of Sovereign AI. So that's another one picking up. And finally, every client wants us to make a very AI-secure and responsible.

Speaker #4: Second is, you know, data priming for AI, right? You know, if you don't have the right—and enterprises are struggling with data. We have to be honest about that.

Speaker #4: So to me, NetNet is a positive in terms of new services that are coming in. Yes, short-term, SDLC lifecycle will continue to bring in higher productivity and shorter development lifecycle.

Speaker #4: Some enterprises have told us, "We've got too much data. We don't know whether we need all this data to get the AI right."

Speaker #4: Third is, you know, agent implementation and managing agents. Every organization is building a tremendous number of agents. How do you deploy them? How do you orchestrate, deploy, and manage them?

Speaker #4: But I just want to call out, even there, it is going to be human plus AI, always. Because in a software development lifecycle, the business requirement, user stories, you need humans.

Speaker #4: And Ravi, you know, the token tokenization, token economics, whatever you call it, is going, you know, it's actually skyrocketing right now. So the, especially the CFOs are saying, you know, hey, you know, what's the, what's my ROI?

Speaker #4: At the same time, when you're deploying and the productivity and taking it to production unit, human intervention, of course, AI can throw millions lines of code, but we need to make sure that code is optimized.

Speaker #4: So, do I use high-end LLMs for a particular process or a workflow? Do I use an open source model? So that's a conversation that's going on.

Speaker #4: So that's how I see it, Ravi.

Speaker #3: Thanks so much for the excellent answer. Thank you.

Speaker #1: Thank you. Next question is from the line of Nitin Padmanabhan from Investech. Please go ahead.

Speaker #4: We having the deep tech, we are able to actually have that conversation with the client. So there are multiple new opportunities, whether it's model ops, you know, AIDCs is something that's picking up with enterprises.

Speaker #2: Yeah. Hi. Good evening. Thank you for the opportunity. First, I wanted your thoughts on how should we see margins recovering to the band that we stated.

Speaker #4: You would have heard of Sovereign AI, so that's another one picking up. And finally, every client wants us to make their AI secure and, you know, responsible.

Speaker #2: Do you think it'll be gradual through the year? Or do you think there's any element that can help a faster sort of recovery, considering we don't have age increases and that's done and behind?

Speaker #4: So to me, net-net is a positive, you know, in terms of new services that are coming in. Yes, short term, SDLC lifecycle will continue to bring in higher productivity and shorter development lifecycle.

Speaker #2: The second is, from an overall business perspective, when do you think the headwinds sort of received where we can start showing some level of growth as a business?

Speaker #4: But I just want to call out, even there, it is going to be human plus AI, always. Because in a software development lifecycle—the business requirement, user stories—you need humans.

Speaker #2: And do you think these headwinds are largely over in Q2, or do you see any specific things that could linger? Yeah. Thank you.

Speaker #4: At the same time, when you are deploying in a productivity, you know, and taking into production unit, human intervention, of course—you know, AI can throw millions of lines of code, but we need to make sure that code is optimized.

Speaker #4: So that's how I see it, Ravi.

Speaker #3: Thanks so much for this lecture, Srinivas. Thank you.

Speaker #4: Hi, Nitin. Srinivas here. On the margin aspect, Nitin, Aparna talked about it as well in her commentary. The reason why we had a drop of 120 basis points is, number one, the impact of MSI we had.

Speaker #1: Thank you. Next question is from the line of Nitin Padmanabhan from Investec. Please go ahead.

Speaker #2: Yeah, hi. Good evening. Thank you for the opportunity. First, I wanted your thoughts on how we should see margins recovering to the band that we stated.

Speaker #4: It's coming into this quarter. Second, the investments that we are making in AI and in deals. That's the second part. Third is the acquisition.

Speaker #2: Do you think it'll be gradual through the year? Or do you think there's any element that can help a faster sort of recovery considering we don't have increases and that's done and behind?

Speaker #4: Some of the acquisitions that we made that are actually coming to execution mode right now. So that's the impact of the impact we had on the margins.

Speaker #2: The second is, from an overall business perspective, when do you think the headwinds sort of recede, where we can start showing some level of growth as a business?

Speaker #4: Having said that, Nitin, our mission is clearly to go back to the narrow band that we've been talking about, 17 to 17.5. Now, the question that you are asking is, what is the timeframe?

Speaker #2: And do you think these headwinds are largely over in Q2, or do you see any specific things that could linger? Yeah, thank you.

Speaker #4: Right now, in the context of the volatility that we see, in the context of the revenue situation that we see, right, I do not want to predict exactly where when we will get there.

Speaker #4: But the point is that we want to get there. If you noticed in the last two years also, Nitin, despite the challenges with the revenue, we continue to stay focused on margin improvements.

Speaker #4: Hi, Nitin. Srini here. On the margins aspect, Nitin, you know, you know, Aparna talked about it as well in her commentary. The reason why we had a drop of 120 basis points is, number one, you know, the impact of MSI we had.

Speaker #4: You can be rest assured, we will continue that path. However, I want to clearly articulate that we want to invest in our new AI native business.

Speaker #4: It's coming into this quarter. Second, the investments that we are making in AI and in deals. That's the second part. Third is, you know, the acquisition, some of the acquisitions that we made that are actually coming to, you know, into execution mode right now.

Speaker #4: We want to because when you are doing an AI native business, you need you also need to have the right talent. You need to have the right infrastructure to build the new products, new platforms, and solutions as well.

Speaker #4: So it's a combination of all this, Nitin.

Speaker #4: So that's the impact of the, you know, impact we had on the margin. Having said that, Nitin, our mission is clearly to go back to the narrow band that we've been talking about, 17 to 17.5.

Speaker #2: Yeah. Qualitatively, do you think it's fair to assume that it's gradual rather than quicker? Just a qualitative thought process is fine.

Speaker #4: Yeah. The endeavor is to reach where we want to reach. And if you look at, Nitin, there are multiple levers for us from an operational perspective.

Speaker #4: Now, the question that you are asking is, what is the timeframe? Right now, in the context of the volatility that we see, in the context of the revenue situation that we see, I do not want to predict exactly where, you know, when we will get there.

Speaker #4: Whether it's how you can take the cost out in SAP, both in terms of automation, AI, and productivity. We have other levers, including G&A and so on and so forth.

Speaker #4: But the point is that we want to get there. If you noticed in the last two years also, Nitin, you know, despite the challenges with the revenue, we continue to stay focused on margin improvements.

Speaker #4: The bench utilization has been higher. That's another lever that we have. How do you restructure the pyramid, right, in the context of AI? And how much of the projects and programs you can run it through agents?

Speaker #4: You can be rest assured, we will continue that path. However, you know, I want to clearly articulate that we want to invest in our new AI native business.

Speaker #4: And how many of our current existing programs we can identify? So these are all the levers that we are looking at, Nitin. And we'll stay focused on that.

Speaker #4: We want to, because when you are doing an AI native business, you need, you know, you also need to have the right talent. You need to have the right infrastructure to build the new products, new platforms, and solutions as well.

Speaker #4: But the point, the message I wanted to give you is that despite all this, we will also want to continue to invest in our future, which is very, very critical because the world has pivoting to AI, and we have already pivoted to AI.

Speaker #4: So it's a combination of all this, Nitin.

Speaker #2: Yeah, qualitatively, do you think it's fair to assume that it's gradual rather than quicker? Just a qualitative thought process is fine.

Speaker #4: And we will continue our journey around consulting-led and AI-powered. And we will stay focused on that. Wipro Intelligence platform, both delivery platforms and the industry cross-industry platforms, we are seeing good traction, Nitin.

Speaker #4: Yeah, the endeavor is to reach where we want to reach. And if you look at it, Nitin, you know, there are multiple levers for us from an operational perspective.

Speaker #4: And in the future, the consumption will be platform plus service, not just pure service.

Speaker #4: Whether it's how you can take the cost out in SAP, both in terms of automation, AI, and productivity. You know, we have other levels, including, you know, G&A, and so on and so forth.

Speaker #2: Sure. And from a growth perspective? When do you think headwinds that you're seeing sort of recede?

Speaker #4: Yeah. So if you look at it from a growth perspective, Nitin, typically we give just one quarter view of our guidance, right? Like I said, the demand environment remains soft.

Speaker #4: You know, you know, the bench utilization has been higher. That's another lever that we have. How do you restructure the pyramid? Right, in the context of AI, and how much of the projects and programs you can, you know, run it through agents?

Speaker #4: And that has reflected in our quarter two guidance. Having said that, Nitin, I just want to call out the points that I made, that we are seeing good traction building up in Americas, in the PFSI segment, right, which was a question that in the Ravi had asked.

Speaker #4: And how many of our current existing programs we can identify? So these are all the levers that we are looking at, Nitin. And we'll stay focused on that.

Speaker #4: But the point, the message I wanted to give you, is that despite all this, we will also want to continue to invest in our future, which is very, very critical because the world is pivoting to AI.

Speaker #4: Second, EMR, which is energy manufacturing resources sector, which was very soft in Europe and APMEA. We have one couple of deals in Europe in this segment.

Speaker #4: And we have already pivoted to AI. And we will continue our journey around consulting-led and AI-powered. And we will stay focused on that. Wipro Intelligence Platform, both delivery platforms and the industry, cross-industry platforms, we are seeing good traction, Nitin.

Speaker #4: We will see that coming into delivery, right? So to me, also, the way the customer takes the cost out, then they start shifting their budgets to AI, we are ready for that.

Speaker #4: And in the future, the consumption will be platform plus service, not just pure service.

Speaker #2: Sure. And from a growth perspective, when do you think—

Speaker #4: That's how I see it. So I can't give a commentary in terms of how our quarters will go because I want to stay within our quarter two guidance.

Speaker #4: So from a.

Speaker #2: Headwinds that you're seeing, are they starting to recede?

Speaker #4: Yeah. So if you look at it from a growth perspective, Nitin, you know, typically we give just a one-quarter view of our guidance, right? Like I said, the demand environment remains soft.

Speaker #2: For sure. Fair enough. Thank you, Srinivas, on the very best.

Speaker #1: Thank you. Next question is from the line of Wibhor Singal from Nuwama Institutional Equities. Please go ahead.

Speaker #2: Yeah. Hi. Thanks for taking my question. So Srinivas, a couple of questions from my side. I think two verticals kind of dragged the growth this quarter.

Speaker #2: Energy and healthcare. You mentioned about energy that the softness in the European markets and we've won a couple of deals. So good to hear that we'll probably have recovering that soon.

Speaker #4: Second, EMR, which is, you know, the Energy, Manufacturing, and Resources sector, which was very soft in Europe and APAC. We have won a couple of deals in Europe in this segment.

Speaker #2: What's your take on the healthcare segment? And this segment has been one of the key segments in which we were one of the early pioneers.

Speaker #4: We will see that, you know, coming into delivery, right? So to me, also, the way the customer takes the cost out, then they start shifting their, you know, budgets to AI, you know, we are ready for that.

Speaker #2: And at this point, Wibhor.

Speaker #4: Wibhor. Sorry to interrupt you. We could not hear you properly. I'm sorry. Could you just repeat the question? Thank you.

Speaker #2: Yeah. Sure. Please.

Speaker #4: Go ahead, Wibhor.

Speaker #4: That's how I see it. So I can't give a commentary in terms of how our quarters will go because I want to stay within our Q2 guidance.

Speaker #2: Yeah. I hope I'm audible now. Yeah. Sorry for that, Srinivas. Yeah. So my question was basically on the that there were two verticals which dragged the growth this time.

Speaker #2: For sure. Fair enough. Thank you, Srini, and all the very best.

Speaker #2: One was the E&U, which you mentioned that it was because and. Good to hear that there are deals that we have unwill to ramp up in the coming quarters.

Speaker #1: Thank you. Next question is from the line of Wipro Singhal, from Noama Institutional Equities. Please go ahead.

Speaker #2: On the healthcare vertical, what is the view that we are looking at? I mean, we used to be I mean, we were one of the pioneers of this industry and from the peers, we hear a lot of comment, a lot of companies are kind of incubating their healthcare vertical because of the strong demand that they are seeing, especially from the payer's side.

Speaker #2: Yeah, hi. Thanks for taking my question. So, Srini, a couple of questions from my side. I think two verticals kind of dragged the growth this quarter.

Speaker #2: Energy and healthcare. You mentioned about energy—the softness in the European markets, and we've won a couple of deals. So, good to hear that we'll probably have recovery in that soon.

Speaker #2: And some, of course, in the provider side as well. So what is the outlook on that vertical in terms of deals that we might have won?

Speaker #2: And when do you think that vertical kind of comes back to growth? I'll have a couple of follow-ups if you can answer this piece.

Speaker #2: What's your take on the healthcare segment? And this segment has been one of the, one of our key segments in which we were one of the early pioneers and at this point.

Speaker #4: Sure, Wibhor. I think your observation is very valid. For us, the healthcare sector has regrown by 2.6% sequentially. And if you look at from a year-on-year basis, 3%.

Speaker #4: Wipro, Wipro, Wipro. Sorry to interrupt you. You know. We could not hear you properly. I'm sorry. Could you just repeat the question? Thank you.

Speaker #2: Yeah, sure, please.

Speaker #4: Go ahead, Wipro.

Speaker #4: See, what has happened is, especially when I say healthcare, we have multiple segments. We have got payers, we've got providers, we've got life sciences, and we have got medical devices companies.

Speaker #2: Yeah, I hope I'm audible now.

Speaker #4: Yes.

Speaker #2: Yeah, sorry for that, Srini. Yeah, so my question was basically on the, that there were two verticals which dragged the growth this time. One was the E&U, which you mentioned that it was because.

Speaker #2: And good to hear that there are deals that we have won that will ramp up in the coming quarters. On the healthcare vertical, what is the view that we are looking at?

Speaker #4: These are the four industry segments within the healthcare sector. We have a huge presence in payers and providers in the US. The impact that we had is because of the US healthcare ecosystem, right, which is facing sustained pressure both from structural and demographic forces due to the situation which is very much within the US context, right?

Speaker #2: I mean, we used to be— we were one of the pioneers of this industry, and from our peers, we hear a lot of comments. A lot of companies are kind of incubating their healthcare vertical because of the strong demand that they are seeing.

Speaker #2: Especially from the payer side, and some, of course, on the provider side as well. So what is the outlook on that vertical in terms of deals that we might have won?

Speaker #2: And when do you think that vertical kind of comes back to growth? I'll have a couple of follow-up if you can answer this piece.

Speaker #4: So what we have seen in some of these companies are because of the pressures that they have, from the whole government and so on and so forth, right?

Speaker #4: Sure, Wipro. I think, you know, your observation is very valid. For us, the healthcare sector has regrown by 2.6% sequentially. And if you look at from a year-on-year basis, 3%.

Speaker #4: They have been their budgets have been flattished for us, and some places we have seen the negative growth. They'd also there's a lot of pressure in terms of taking the cost out.

Speaker #4: And also, most of the budgets, right now, have kind of being reallocated to some kind of discretionary spend, but towards AI and big portion of it is on the compliance, Wibhor.

Speaker #4: These are the four industry segments within the healthcare sector. We have a huge presence in payers and providers in the US. The impact that we had is because of the US healthcare ecosystem, which is facing sustained pressure, both from structural and demographic forces, due to the situation which is very much within the US context.

Speaker #4: So to me, the more they use AI and the automation aggressively, and offset the cost pressures, I think that would help us going forward.

Speaker #4: So we are staying focused on the regulatory mandates, like I talked about, like both Medicare, Medicaid, and ACA. If you recollect, we have a huge platform that supports these aspects.

Speaker #4: So the member onboarding, in terms of member services that we need to do, how that has evolved for us in the last one to two quarters, also had an impact on the numbers that you see.

Speaker #4: So, what we have seen in some of these companies is, you know, because of the pressures that they have from the whole government and so on and so forth, right?

Speaker #4: Having said that, if I look at the opportunities that we see, right, especially reimagining some of their processes with AI, so Wibhor claims is one important thing.

Speaker #4: Their budgets have been flattish for us, and in some places, we have seen negative growth. Also, there’s a lot of pressure in terms of taking the cost out.

Speaker #4: And also, most of the budgets, right now, have kind of, you know, being reallocated to some kind of discretionary spend, but towards AI. And big portion of it is on the compliance, Wipro.

Speaker #4: Clients are looking at taking the cost out on contact centers, right? Also, now, more and more with the HIPAA compliance and the regulatory compliance coming into picture, they are able to do deploy AI more confidently into clinical operations.

Speaker #4: So to me, the more they use AI and the automation aggressively, and, you know, offset the cost pressures, I think, you know, that would help us going forward.

Speaker #4: Including regulatory processes. So I see these as our new opportunities that are coming in. We are staying focused on that, Wibhor.

Speaker #4: So, we are staying focused on the regulatory mandates, like I talked about—both Medicare, Medicaid, and ACA. If you recollect, we have a huge platform that supports these aspects.

Speaker #2: Got it. Got it. Any timeline that you would be able to provide that you think our healthcare vertical should see some recovery?

Speaker #4: So Wibhor, like I said, I don't want to forecast beyond quarter two. So quarter two is all this that I talked to you about is baked in.

Speaker #4: So the member onboarding, in terms of member services that we need to do, you know, how that, you know, how that has evolved for us in the last one to two quarters, also had an impact on the numbers that you see.

Speaker #4: Having said that, AI, like I said, AI is a structural opportunity. I see this opportunity in every industry verticals within the healthcare system, Wibhor.

Speaker #4: Having said that, you know, if I look at the opportunities that we see, right, you know, especially reimagining some of their processes with AI, so Wipro, you know, claims is one important thing.

Speaker #4: Including providers. Because they also want to improve their efficiency. Let's look at providers today. They depend a lot on these products like Epic, who are also making it more AI.

Speaker #4: Clients are looking at taking the cost out on contact centers, right? Also, you know, now more and more with the HIPAA compliance and the regulatory compliance coming into picture, they are able to do, you know, deploy AI more confidently into clinical operations.

Speaker #4: They are actually integrating their provider systems into payer systems and so that and employ the members and the patients, they can actually have an end-to-end view of how the medical systems work as well.

Speaker #4: Including, you know, regulatory processes. So I see these as our new opportunities that are coming in. We are staying focused on that, Wipro.

Speaker #4: So these are the opportunities that are coming in. We are having the conversations around that as well, Wibhor. But I'm not giving you a specific timeline at this point in time.

Speaker #2: Got it. Got it. This is helpful, Srinivas. Just my second question on the deal wins. The total deal wins and the last deal wins were down quite sharply on a Y on Y basis.

Speaker #2: Got it, got it. Any timeline that you would be able to provide that you think our healthcare vertical should see some recovery?

Speaker #4: So, Wipro, you know, like I said, I don't want to forecast beyond quarter two. So, quarter two is, you know, all this that I talked to you about is baked in.

Speaker #2: I would assume it is just a timing kind of a thing because you mentioned the pipeline remains quite strong. So maybe some deals got pushed into Q2 or something like that.

Speaker #2: Is that the correct, Srinivas?

Speaker #4: Having said that, you know, AI, you know, like I said, you know, AI is a structural opportunity. I see this opportunity in every, you know, industry verticals within the healthcare system, Wipro.

Speaker #4: So absolutely, Wibhor. If you look at our quarter one, right, we clearly had, like I said, 3.3 billion dollars' worth of bookings. Out of which 1.6 billion dollars were 13 large deals that contributed to that.

Speaker #4: Including providers, because they also want to, you know, improve their efficiency. Let's look at providers today. You know, they depend a lot on these products like Epic, who are also making it more AI.

Speaker #4: Having said that, your point is valid. Some of the decisions on some of these deals have actually slipped to quarter two. And I always tell my team, when it slips, you've got to really hold on.

Speaker #4: They are actually integrating their provider systems into payer systems. And, you know, so that, and, you know, employee, you know, the members and the patients, they can actually, you know, have an end-to-end view of how the medical, Medicare, medical systems work as well.

Speaker #4: Don't let it slip because and try and let's close it in M1, M2 rather than wait for the M3. So that's the work that we are doing right now.

Speaker #4: But your point is valid. The observation is valid. The pipeline is healthy. And also, there are a lot of deals around cost optimization and vendor consolidation.

Speaker #4: So these are the opportunities that are coming in. We are having the conversations around that as well, with Wipro. But I'm not giving you a specific timeline at this point in time.

Speaker #4: But I also want to call out, Wibhor, that I want to give you a little bit of color in terms of the kind of pipeline we have, right?

Speaker #2: Got it, got it. This is helpful, Srini. Just my second question on the deal wins. The total deal wins and the large deal wins were down quite sharply on a buy-on-buy basis.

Speaker #4: So the pipeline one, let me give you one color, Wibhor. One is sectors. Let me also give you the type of deals outside of these large and mega deals, right?

Speaker #2: I would assume it is just a timing kind of a thing because you mentioned the pipeline remains quite strong. So maybe some deals got pushed into Q2 or something like that.

Speaker #2: Is that the correct reading?

Speaker #4: So I called out PFSI, if you remember, right? Americas and Europe, the pipeline is strong. Wibhor. But if you look at from a consumer, we just won a couple of deals in Americas.

Speaker #4: So absolutely, Wipro. You know, if you look at our quarter one, right, you know, we clearly had, like I said, 3.3 billion dollars' worth of bookings.

Speaker #4: Out of which 1.6 billion dollars were, you know, 13 large deals that contributed to that. Having said that, your point is valid. Some of the decisions on some of these deals have actually slipped to quarter two.

Speaker #4: But it is I wouldn't want to say that it is a big piece, but it's definitely modest in Americas and Europe. In ACME, a consumer is weak.

Speaker #4: That's how I see it, Wibhor. Tech and comms, very strong in Americas. I think that's one place we are seeing double-digit growth that I talked about.

Speaker #4: And, you know, I always tell my team, you know, when it slips, you've got to really hold on. Don't let it slip because, you know, and try and let's close it in M1, M2 rather than wait for the M3.

Speaker #4: And I think it will continue we see continue to see strong momentum there. EMR, which you also called out after I said it. Right now, it's strong in Europe because we come on a back of two wins.

Speaker #4: So that's a work that we are doing right now. But your point is valid. The observation is valid. The pipeline is healthy. And also there are a lot of deals around cost optimization and vendor consolidation.

Speaker #4: And also, it's strong in Americas, including our LATAM. But in a little bit modest in API, I think based on what's going on. Healthcare, I did talk about it, right?

Speaker #4: But I also want to call out, Wipro, that I want to give a little bit of color in terms of the kind of pipeline we have, right?

Speaker #4: I want to overall, it's strong, but I want to be careful in terms of what we call out. So that's the color from a sector perspective, Wibhor.

Speaker #4: So the pipeline one, let me give you one color, Wipro. One is sectors. Let me also give you the type of deals outside of these large and mega deals, right?

Speaker #4: But if I look at from an opportunities perspective, there are new opportunities also coming in, like I talked about, right? There are clients who are talking to us on Sovereign AI.

Speaker #4: So I called out BFSI, if you remember, right? Americas and Europe, the pipeline is strong. Wipro. But if you look at from a consumer, you know, we just won a couple of deals in Americas.

Speaker #4: There are clients who want to build AIDCs, right? So those opportunities are also coming in. The size and scale depends upon how much for example, if I look at AIDC, how much of design and architecture you do, how much of implementation and management that you do, depends on which part of the project and program that we are involved and the size and scale and complexity depends on that, Wibhor.

Speaker #4: But, you know, it is, I wouldn't want to say that it is, you know, big piece, but it's definitely modest. In Americas and Europe.

Speaker #4: In APMI, the consumer is weak. That's how I see it, Wipro. Tech and comms are very strong in the Americas. I think that's one place where we are seeing double-digit growth, as I mentioned.

Speaker #4: But overall, your point, our pipeline is healthy.

Speaker #4: And I think, you know, you know, we see continue to see strong momentum there. EMR, which you also called out after I said it, right now it's strong in Europe because, you know, we come on, you know, back of two wins.

Speaker #2: Got it. Got it. Got it. Thanks for taking my question, Srinivas. Just one follow-up for Aparna, if I may. Aparna, I just wanted to get some color on how to look at the margins.

Speaker #2: In the wake of the AI-driven deals that we are seeing at this point of time, I mean, I know it's difficult to take a one make a one statement analysis that, okay, the margins, the deals will be margin accretive or dilutive.

Speaker #4: And also it's strong in Americas, including our LATAM. But, you know, a little bit modest in APMI. I think, you know, based on what's going on.

Speaker #4: Healthcare, you know, I did talk about it, right? I want to, overall, it's strong, but, you know, but I want to be careful in terms of what we call out.

Speaker #2: But from an overall point of view, I mean, let's say we are also building SLMs for the client, or let's say the application layers for them, then there is the token cost involved.

Speaker #4: So that's the color from a sector perspective, Wipro. But if I look at from an opportunities perspective, there are new opportunities also coming in, like I talked about, right?

Speaker #2: So overall, where does the math sit for these large AI-driven deals that we are chasing and we are winning in terms of margin vis-à-vis our current portfolio?

Speaker #4: You know, there are clients who are talking to us on Sovereign AI. There are clients who want to build AIDCs, right? So those opportunities are also coming in.

Speaker #4: The size and scale depends upon how much, you know, for example, if I look at AIDC, how much of, you know, design and architecture you do, how much of implementation and delivery, and management that you do, depends on which part of the project and program that we are involved and the size and scale and complexity depends on that, Wipro.

Speaker #3: So clearly, Wibhor, I think like you rightly said, one size doesn't fit all. It'll depend deal to deal. Wherever the intention is to use AI for you to be able to drive higher productivity and take cost out for a large operation for a client, the cost takeout is priority.

Speaker #4: But overall, your point, you know, you healthy.

Speaker #3: You will see that there will be a lot of productivity forward productivity that gets baked into deals. Right? The reimagine AI that Srinivas spoke about, the paths which are newer, where you are going to be seeing newer spends on a kind of AI, there we are very confident we will drive a premium in rate realization.

Speaker #2: Got it, got it, got it. Thanks for taking my question, Srini. Just one follow-up for Aparna, if I may. Aparna, I just wanted to get some color on how to look at the margins.

Speaker #3: Similarly, service offerings around data, AI advisory, they'll all be very increment like incrementally net positive to the rate realizations and margins. So it'll depend on what we are using the AI for and how we are structuring the deal.

Speaker #2: But from an overall point of view, I mean, let's say we are also building SLMs for the client, or let's say the application layers for them, then there is the token cost involved.

Speaker #2: So overall, where does the math sit for these large AI-driven deals that we are chasing and we are winning in terms of margin vis-à-vis our current portfolio?

Speaker #3: So large deals, we'll remain competitive. You will have some amount of forward productivity that gets baked in. When you're looking at AI over smaller programs, where you're looking at things like data modernization, when you're looking at smaller pockets, and you're looking at newer areas, they will be accurate.

Speaker #3: So clearly, Wipro, I think, like you rightly said, one size doesn't fit all. It'll ll depend deal to deal. Wherever the intention is to use AI for you to be able to drive higher productivity and take cost out for a large operation for a client, where the cost-taker is priority, you will see that, you know, there will be a lot of productivity forward productivity that gets baked into deals.

Speaker #3: And that's been our experience thus far. And yes.

Speaker #2: Got it. Got it. Got it. Great, Wibhor. Thanks, Aparna, for the clarification. And thanks a lot, guys, for taking my questions. Wish you all the best.

Speaker #3: Right? The reimagined AI that Srini spoke about, the paths which are newer, where you are going to be seeing newer spends on a kind of AI, there we are very confident we will drive a premium in rate realization.

Speaker #3: Thank you.

Speaker #1: We'll take our next question from the line of Rajiv Earlier from JM Financial. Please go ahead.

Speaker #5: Yeah. Thank you for the opportunity. Can you break the 2Q revenue guidance into organic and incremental contribution from inorganic?

Speaker #3: Similarly, service offerings around data and AI advisory—they'll all be incremental, like incrementally net positive to the rate realizations and margins. So it will depend on what we are using the AI for and how we are structuring the deal.

Speaker #3: that, Rajiv. We're not breaking our guidance out. And if you look at it, last quarter, we had said that mind print was coming in, and we had in the guidance baked in 45 days.

Speaker #3: But in our actual Q1 results, we've had two months of it, of the revenues being consolidated. You can do the math, but like we typically do, we only disclose in the first quarter, and after that, we don't make further disclosure.

Speaker #5: And the second part of the question is, if you see in the last earning calls, you mentioned about client in sourcing impact in PFSI.

Speaker #3: And that's been our experience thus far. And yes, that's it.

Speaker #5: Is that fully behind in this quarter, or do we see some impact from a going forward perspective as well?

Speaker #2: Got it, got it, got it. Great, Wipro. Thanks, Aparna, for the clarification. And thanks a lot, guys, for taking my questions. Wish you all the best.

Speaker #3: No, I think that is behind us. Rajiv.

Speaker #1: Thank you. We'll take our next question from the line of Rajiv Earlier from JM Financial. Please go ahead.

Speaker #5: Yeah. Thank you. That's all from my side.

Speaker #1: Thank you. We'll take a last question from the line of Abhishek Bhandari from Nomura. Please go ahead.

Speaker #5: Yeah, thank you for the opportunity. Can you break the Q2 revenue guidance into organic and incremental contribution from inorganic?

Speaker #4: Thank you for the opportunity. Srinivas, all through the call, you guys have mentioned that the large deal environment remains very competitive. I was curious to understand, as the degree of competition increase, decrease, or is it stable?

Speaker #3: We're not doing that, Rajiv. We're not breaking our guidance out. And if you look at it, last quarter we had said that, you know, mind print was coming in and we had in the guidance baked in 45 days.

Speaker #4: And a related question is, how are you future-proofing your margins in the wake of such competitive pressures? We already saw some glimpse of margin headwind in Q1.

Speaker #4: Which, of course, you will recoup through the year. But if the market remains like this, how do you ensure that we don't trade off the margin for chasing growth?

Speaker #6: Yeah, Abhishek. Coming to the first point of first question on the competitive landscape, from a broader industry perspective, Abhishek, if I look at it, AI is reshaping most of the spend allocations.

Speaker #5: And the second part of the question is, if using the last earning calls, you mentioned about client in sourcing impact in BFSI. Is that fully behind in this quarter or do we see some impact from a going forward perspective as well?

Speaker #3: No, I think that is behind us. Rajiv.

Speaker #6: So what that means is, from a client perspective, the traditional IT, the traditional BPO that we do, and the support aspects of it, those budgets are getting compressed.

Speaker #5: Yeah, thank you. That's all from my side.

Speaker #1: Thank you. We'll take a last question from the line of Abhishek Bhandari from Nomura. Please go ahead.

Speaker #6: So the clients want us to deploy more AI. The clients want us to kind of disrupt that aspect of the whole process to bring in agentic aspect of it.

Speaker #4: Thank you for the opportunity. Srini, also we call you guys have mentioned that the large deal environment remains very competitive. I was curious to understand, as the degree of competition increase, decrease, or is it stable?

Speaker #6: So that is, I would say, a lever for our clients to improve their budgets for new spend pools around AI. So what the clients are also driving that, which is not just competition, but also client wants to take the cost out on that.

Speaker #4: And a related question is, you know, how are you, you know, future-proofing your margins in the wake of such competitive pressures? You know, we already saw some glimpse of, you know, margin headwind in Q1.

Speaker #4: It's, of course, you will recoup through the year. But if the market remains like this, how do you ensure that, you know, we don't trade off the margin for chasing growth?

Speaker #6: And we do have opportunities for us to go and talk to our clients in terms of, for example, how we can deploy Wings and bring in a productivity benefits and make it more agentic and, of course, the clients are also looking at the experience aspect of it, velocity aspect of it, and so on and so forth.

Speaker #4: Yeah. Yeah, Abhishek, you know, coming to the first point of first question on the competitive landscape, you know, from a broader industry perspective, Abhishek, you know, if I look at it, AI is reshaping most of the spend allocations.

Speaker #6: Now, coming to the so if that is the place where there is compression, there is definitely competition, Abhishek. Now, the reason I'm saying is that sometimes we will have to look at client-to-client in terms of their ability and propensity to implement AI.

Speaker #4: So what that means is, from a client perspective, the traditional IT, the traditional BPO that we do, and the support aspects of it—those budgets are getting compressed.

Speaker #4: So the clients want us to deploy more AI. The clients want us to, you know, you know, kind of disrupt that aspect of the whole process to bring in the agentic aspect of it.

Speaker #6: We have seen certain clients who want to do it in a lot more faster way, and some of them are saying that we want to spread it out.

Speaker #6: So in that context, the pricing aspects also changes. And we have to relook at how the solutioning happens. Because when you deploy AI quickly, the token cost also increases for our clients.

Speaker #4: So that is a, I would say, lever for our clients to, you know, to, you know, improve their budgets for new spend pools around AI.

Speaker #4: So the clients are also driving that, which is not just competition, but also clients wanting to take the cost out of that.

Speaker #6: So they are looking at total cost of ownership. And that is something that we're being carefully working on, Abhishek. And this is something that I think, as an industry, as Wipro, we will all continue to evolve.

Speaker #4: And we do have opportunities for us to go, you know, and talk to our clients in terms of, for example, how we can deploy Wings and bring in end-to-end productivity benefits, and make it more agentic. And, you know, of course, the clients are also looking at the experience aspect of it, the velocity aspect of it, and so on and so forth.

Speaker #6: Now, coming to the margin pressure, it's actually related to that, right? So if you look at large traditional deals, cost optimization, vendor consolidation, there will be margin pressures because sometimes you want to invest into the deals for now to make it more long-term as well.

Speaker #4: Now, coming to the—so if that is the place where there is compression, there is definitely competition, Abhishek. Now, the reason I'm saying this is that sometimes, you know, we will have to look at client to client in terms of their ability and propensity to implement AI.

Speaker #6: Abhishek. So if it is the net new reimagined AI kind of projects and programs, right, the margins are much better. But if it's a traditional work where you have to bring in the productivity through AI, at the same time, help the clients to shift the budgets, there are competitive pressures.

Speaker #4: We have seen certain clients, you know, who want to do it in a lot faster way, and some of them are saying that, you know, we want to spread it out.

Speaker #5: Got it. Thanks, Srinivas, and all the best for the year.

Speaker #4: So in that context, you know, the pricing aspects also changes and, you know, you know, we have to relook at how the solutioning happens.

Speaker #6: Thanks, Abhishek.

Speaker #1: Thank you. I would now like to hand the conference back to Mr. Abhishek Jain for closing comments. Over to you, sir.

Speaker #4: Because when you deploy AI quickly, the token cost also, you know, increases for our client. So they are looking at total cost of ownership.

Speaker #6: Yes. Thank you all for joining the call. In case you could not take any questions due to time constraints, please feel free to reach out to the investigation team.

Speaker #4: And that is something that, you know, we've been carefully working on, Abhishek. And this is something that I think, as an industry, as Wipro, we will all continue to evolve.

Speaker #6: Have a nice day. Thank you.

Speaker #4: Now, coming to the margin pressure—you know, it’s actually related to that, right? So if you look at large traditional deals, cost optimization, vendor consolidation, there will be margin pressures because sometimes you want to invest into the deals for now to, you know, make it more long-term as well.

Speaker #4: Abhishek, so if it is a net new reimagined AI kind of projects and programs, right, you know, the margins are much better. But if it's a traditional work where you have to bring in the productivity through AI, at the same time, help the clients to shift the budgets, there are competitive pressures.

Speaker #2: Got it. Thanks, Srini, and all the best for the year.

Speaker #4: Thanks, Abhishek.

Speaker #1: Thank you. I would now like to hand the conference back to Mr. Abhishek Jain for closing comments. Over to you, sir.

Speaker #4: Yes. Thank you all for joining the call. In case you could not take any questions due to time constraints, please feel free to reach out to the investigation team.

Speaker #4: Have a nice day. Thank you.

Q1 2027 Wipro Ltd Earnings Call

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