Full Conference Call between Wipro Management and Analysts on Q4FY20 results and overall financial year. Listen in to the full transcript. 

Wipro's Executive Committee and Management Team joined virtually on the call.

Key Highlights 

- These are unprecedented times and I am proud of all the team has come together to keep processes going.

- Revenues in Q4FY20 grew 0.4% in constant currency terms within the guidance, and grew 3.9% for the full year in constant currency. In March as the Covid crisis deteriorated, key markets like US, UK, Europe, we saw accelerated impact to our systems. 

-  Our Rupee revenues 4.2% growth for this fiscal year. Expanded our IT services margins by 0.2% to 18.2% for the full year. That helped grow operating profit by 5.8%. Buyback got completed by September; other income grew 8% YoY.

- Effective tax rate was lower by 1.7% during this year. Overall net income YoY grew YoY at 8%. Because of reduction in outstanding shares due to buyback, growth in EPS FY20 was 11.2%. We have $3.4 bn dollars in net cash and $44.4 bn in gross cash. Better realizations overall. Good cash position to continue to look at opportunities.

- Our realization rate for this quarter was 73.95 compared to 72.09 from previous quarter

- Good year on operating cash flow and free cash flow. Operating cash flow as % of EBITDA of 81%, FCF as % of Net Income 81%. Slightly lower cash flows in last quarter. Some salary payments that happen once in a few years, which impacted some of our numbers by upto 30%. 

- We quickly activated our covid management task force headed by our COO. The team consisted of leaders across our major verticals. Our topmost priority remains the safety and well-being of our people and stakeholders. 

- We were able to move by early March most of our people globally to work from home. In India this started on March 15. This involved getting approvals from our customers as well. SLA performance has been stable.

- Demand environment: We are very much in the middle of the crisis. We already see budget reductions, discretionary spends, and requests for contract restructuring. Airlines, energy, oil and gas, auto, retail, travel and hospitality are experiencing immediate and deeper impact. 

- Fashion retailers, home improvement retailers, restaurant businesses, department stores, are significantly affected right now. These businesses are cutting costs and trying to move to Omnichannel solutions.

- Struggling verticals: Oil and gas is hit due to oil price falling. Auto manufacturing is where both demand and supply have been disrupted. Retail except grocery stores is struggling. These have been highly impacted.

- Verticals where we are seeing opportunity: Communications, utilities. Banking is seeing some positive impact with refinancing, loans and grants, government support programs. With logistics customers we are seeing traction around supply chain management. While healthcare is seeing decline in elective health treatment, emergency and COVID response has resulted in some demand here particularly in hospitals.  

- We have decided to temporarily suspend quarterly guidance, and will resume when we have some clarity on the length of the crisis. 

- Focus is on defending revenues and increasing market share. We expect demands on working capital to increase, but believe we are comfortably placed. 

- Saw some disruption in regular payment cycles from some customers. We had a good first two weeks in the quarter 1 now and we think we will see that normalize now. 

- There are certain verticals where some organizations have  a fundamental question mark on their business model. We are also getting a lot of requests on postponement of discretionary spend.

- We also see requests for higher efficiency in spending, which means lower revenue but also more opportunity. For example, there is a big demand in cloud infrastructure as more people work remotely. We have our own virtual desk offering, and that presents a big opportunity - we are seeing good traction here as businesses invest in remote collaborative working. 

- There are ongoing a lot of conversations with a lot of clients on postponements, or reducing costs for the customers. It will be difficult to quantify exact number but this is concentrated in retail, travel, oil&gas, auto, hospitality. 

- As bad if not worse than GST is our assessment of the impact on businesses. The focus of our customers has been to be up and running and ensure business functioning. 

- A large portion of our business has become fixed price, locked in for 3-4 years.