Conference Call with Wipro Management and Analysts on Q2FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Wipro Management and Analysts on Q1FY21 Performance and Outlook. Listen to the full earnings transcript.
Key Highlights of Results from Thierry Delaporte, CEO and Managing Director
I am deeply honored to lead Wipro, an extraordinary company and an exemplary corporate citizen with a deep technology heritage built on a strong foundation of values. I have great respect for the work done by the Azim Premji Foundation, its 67% economic ownership of Wipro adds greater meaning to what we do.
Profitable growth will be the most important priority on my agenda. I am confident that we will be able to deliver longterm, sustainable growth in the interest of all our stakeholders. The pandemic is changing the way we work, and we are responding accordingly.
This was one of the toughest quarters when we started - we had very little visibility, but ended up with an amazing quarter.
We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with Operating Cash Flows at 174.9% of Net income. Profitable growth is our most important agenda.
In IT Services, Wipro continued its momentum in winning large deals with our customers.
Wipro has been selected by John Lewis Partnership, one of the UK’s leading retail groups, as a strategic partner to help drive its retail transformation agenda. As part of this, Wipro will deliver state-of-the-art technology infrastructure services, leveraging its capabilities in Cloud, Digital, Cyber Security, Wipro HOLMES our Artificial Intelligence (AI) and Automation Platform
Gross Revenue was Rs 149.1 billion ($2.0 billion1 ), an increase of 1.3% YoY. IT Services Segment Revenue was at $1,921.6 million, a decrease of 5.7% YoY
Non-GAAP2 constant currency IT Services Segment Revenue decreased by 4.4% YoY. IT Services Operating Margin3 for the quarter was at 19.0%, an expansion of 0.6%YoY
Net Income for the quarter was Rs 23.Rs billion ($316.5 million), an increase of 0.1% YoY. Earnings Per Share for the quarter was at Rs 4.20 ($0.06), an increase of 5.7% YoY
Operating Cash Flows was at Rs 41.8 billion ($553.6 million), which is 174.9% of Net Income Performance for the quarter ended June 30, 2020
Wipro has been awarded a strategic, multi-year infrastructure modernization and digital transformation services engagement by Germany-based energy company E.ON. Wipro will transform E.ON’s legacy data center operations to a hybrid cloud model by leveraging its strong energy value chain expertise in a prosumer driven world, Boundary Less Enterprise (BLE) framework and Wipro HOLMES™.
Wipro’s consumption-based hybrid cloud hosting strategy will ensure a superior and secure customer environment spanning Perimeter & Endpoint security, threat detection & response, and Privileged Access Management (PAM)
Wipro has also won a managed services contract from a multinational European automobile manufacturer to modernize and automate its engineering operations, leveraging Digital Rig, the client’s differentiated digital solution. With its strong domain expertise, globally-integrated delivery model and Wipro HOLMES, Wipro will drive major transformations to enhance service quality and user experience.
Wipro has won a strategic multi-year engagement with a leading global investment management firm to transform and manage its entire technology development services and infrastructure. The scope includes applications development and maintenance, quality engineering services, and infrastructure services comprising datacenter operations, networks, and service desk support.
This contract adds to the operations engagement that the customer awarded Wipro last year. Wipro will leverage its strong digital expertise and hyper automation capabilities powered by Wipro HOLMES to transform the client’s application and infrastructure estate, driving additional synergies via an integrated technology-infrastructure-operations construct.
