Wipro Ltd. (NYSE:WIT) Q3 2020 Earnings Conference Call - Final Transcript

Jan 14, 2020 • 08:00 am ET


Wipro Ltd. (NYSE:WIT) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, good day and welcome to the Wipro Limited Q3 FY '20 Quarterly Investor Conference Call. As a reminder, all participant lines will be in the listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes.

[Operator Instructions]

Please note that this conference is being recorded. I would now like to hand the conference over to Ms. Aparna Iyer, Vice President and Corporate Treasurer. Thank you, and over to you.

Aparna C. Iyer

Thank you, Stanford. A very warm welcome to our Q3 FY '20 earnings call. We will begin the call with business highlights and overview by our Abid, our Chief Executive Officer and Managing Director, followed by financial overview from our CFO, Jatin Dalal. Afterwards, the operator will open the bridge for Q&A with our management team.

Before Abid starts, let me draw your attention to the fact that during this call we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in our detailed filings 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.

The conference call will be archived and a transcript will be made available on our website. Over to you, Abid.

Abidali Z. Neemuchwala

Thank you, Aparna. Good evening and good morning, ladies and gentlemen. First of all, wish you all a very happy New Year. I am joined over here with my leadership team -- by my leadership team, and it's a pleasure for us to speak to you all and share the results of the third quarter.

Let me quickly provide an update on Q3 performance, our view of the demand environment and progress on our strategy. We had a strong quarter, both on revenues and margin. Our revenues grew by 1.8% in constant currency terms, at the midpoint of our guidance. On a YTD basis, we grew at 4.3% in constant currency terms. In financial services, we saw a slowdown in our growth rate due to continued softness driven by macroeconomic environment. We however remain confident on winning the new deals that we are participating in and leveraging our strong capabilities in digital. We are pleased with our performance in consumer, which grew 12.1% year-over-year constant currency this quarter, and the sustained rhythm that we have in this vertical on deal wins. ENU and Communications continued to grow moderately.

We continue to see recovery in manufacturing and are encouraged by the order book and pipeline. Health saw seasonal uptick in HPS as Q3 has open enrollment period, while the technology business was impacted both by furloughs and slowdown in spend in the semiconductor verticals. The overall demand environment has neither improved nor deteriorated from what I shared last quarter, but we see