Wipro Ltd. (NYSE:WIT) Q2 2021 Earnings Conference Call - Final Transcript

Oct 13, 2020 • 09:00 am ET


Wipro Ltd. (NYSE:WIT) Q2 2021 Earnings Conference Call - Final Transcript


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Jatin Dalal

guided for 1.5% to 3.5% in constant currency. That is reflective of some of the momentum in volume aspect that Thierry spoke about.

From margin standpoint, we had mentioned that we will keep our margins in a narrow band excluding the impact of currency, but we have been able to offset the adverse 60 basis point on account of appreciating rupee and still delivered 20 basis point expansion of margin at 19.2%. If you see our cash flows, the cash flows have been quite robust. We delivered 127% of operating cash flow as percentage of EBITDA and our free cash flow was 164% of net income. As a result, at the end of quarter two, we had a net cash of $4.6 billion. If I talk about forex performance, the rupee appreciation did impact our realizations. We delivered INR75.12 for every dollar in quarter two.

Overall, I want to also talk about two more things. First is about the buyback. We have delivered -- we have announced that the Board has approved, subject to the shareholder approval as well as the regulatory approvals that maybe appropriate, a buyback of INR9,500 crores, excluding the tax impact. If you add back the tax impact, that number is around INR11,600 crores, which is higher than the number that we had considered for buyback in our last round. Overall, we feel that this is a great return of the cash to our shareholders. $1.3 billion of buyback to the shareholders and another roughly $300 million of tax costs if I include, then $4.6 billion would be roughly $3 billion and I think that is something that we should keep as part of our strategic flexibility.

I also want to talk about an exciting acquisition that we have announced today. Eximius Design is one of the leading players in VLSI and system design space and we would be very happy to welcome them as part of overall Wipro engineering group during the course of quarter three. Overall, we had good quarter and we are looking forward to continuing to execute in quarter three as well. We will be happy to take your questions from here on. Thank you.