{"id":144415,"date":"2023-04-28T05:33:47","date_gmt":"2023-04-28T09:33:47","guid":{"rendered":"https:\/\/44.250.171.167\/?p=144415"},"modified":"2023-04-28T05:33:49","modified_gmt":"2023-04-28T09:33:49","slug":"wipro-ltd-q4-fy23-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/wipro-ltd-q4-fy23-earnings-conference-call-insights\/","title":{"rendered":"Wipro Ltd Q4 FY23 Earnings Conference Call Insights"},"content":{"rendered":"<p>https:\/\/youtu.be\/X9a4Gogi92g<\/p>\n<p><strong>Key highlights from Wipro Ltd (WIPRO) Q4 FY23 Earnings Concall<\/strong><\/p>\n<p><strong>Management Update:<\/strong><\/p>\n<ul>\n<li>[00:13:44] WIPRO said it hired over 22,000 NextGen associates in FY23, the highest-ever in its history.<\/li>\n<\/ul>\n<ul>\n<li>[00:14:17] WIPRO\u2019s attrition rates steadily declined throughout FY23, ending 4Q with a 14.1% attrition.<\/li>\n<\/ul>\n<p><strong>Q&amp;A Highlights:<\/strong><\/p>\n<ul>\n<li>[00:18:47] Sudheer Guntupalli from Kotak Mahindra asked about the underlying assumptions for the guidance of minus 3% to minus 1% in constant-currency, and the expected growth rates for the consulting and services book of business. Thierry Delaporte MD said WIPRO had strong performance in bookings in Q3 and Q4, with significant growth of 27% YonY. The company remains positive due to the volume of business it is delivering. WIPRO has increased the percentage of its revenue coming from consulting for strategic reasons, and its acquisitions in this space have delivered performance ahead of plan.<\/li>\n<\/ul>\n<ul>\n<li>[00:23:16] Sudheer Guntupalli from Kotak Mahindra asked why is the strength in bill bookings not converting into revenue and if it\u2019s due to the discretionary nature of the consulting book of business. Thierry Delaporte MD replied the company\u2019s 1Q guidance is due to sales team activity and clients cutting discretionary spending, not any client issues. The company is confident in its ability to bounce back in the following months.<\/li>\n<\/ul>\n<ul>\n<li>[00:25:04] Sandeep Shah from Equirus asked why there is a low correlation between the high book-to-bill ratio in Dec. 22 and Mar. 22 and the disappointing Q3, Q4, and Q1 guidance, despite the order book being heartening in all three periods. Jatin Dalal CFO said WIPRO\u2019s revenue comes from new\/large deals and discretionary work. Growth in new deals has been strong, but there has been a pause in discretionary work due to changing customer priorities. This impacts 1Q, but recent deal wins increase the company\u2019s ability to withstand volatility.<\/li>\n<\/ul>\n<ul>\n<li>[00:31:02] Mukul Garg from Motilal Oswal asked about any change in thought process about holding of cash on book. \u00a0Jatin Dalal CFO said after buybacks, the company will have $1.5 billion cash, net of debt, and continues to generate $300-350 million cash flows per quarter. The buyback size aligns with the 45-50% payout strategy and is done every two years and a quarter, as buybacks are lumpy and infrequent.<\/li>\n<\/ul>\n<ul>\n<li>[00:33:45] Mukul Garg from Motilal Oswal enquired about capital allocation strategy from next year. Jatin Dalal CFO said WIPRO\u2019s strategy for capital allocation remains 45% to 50% of its net income over a block of three years. WIPRO added that it has evaluated its cash position after the buyback and believes it is well-covered for expenses or inorganic opportunities. Buybacks are lumpy and cannot be done at frequent intervals, hence the chosen size.<\/li>\n<\/ul>\n<ul>\n<li>[00:35:00] Mukul Garg of Motilal Oswal asked is there a portion of the consulting business that is more resilient, or will consulting revenues continue to moderate if the demand environment remains weak over the next 1 or 2 quarters. Jatin Dalal CFO said consulting business is evolving with significant activity in transformational and cost optimization deals, especially in banking, financial services, and technology. Despite a slowdown in discretionary spending, WIPRO anticipate a swift rebound due to clients&#8217; demand for programs and pricing needs. Security in SAP is in high demand, following WIPRO\u2019s acquisition a few months ago.<\/li>\n<\/ul>\n<ul>\n<li>[00:37:13] Surendra Goyal from Citigroup enquired how 4Q23 progressed and if got worse towards end of the quarter. Thierry Delaporte MD said that the situation did not get worse in 4Q, and the trend is believed to be the opposite. The financial services and technology markets, where technology is key and investments are required, have experienced a temporary slowdown in discretionary spending.<\/li>\n<\/ul>\n<ul>\n<li>[00:39:59] Surendra Goyal from Citigroup enquired about the percentage of the consulting-oriented portfolio in 4Q and its changes over the years and its recent performance. Thierry Delaporte MD replied not to assume that discretionary spending only comes from consulting. WIPRO mentioned growth in security and SAP consulting and in some areas of financial services. Discretionary spending occurs across the organization.<\/li>\n<\/ul>\n<ul>\n<li>[00:42:30] Girish Pai at Nirmal Bang asked if the company expects growth to pickup in 2H24. Jatin Dalal CFO said WIPRO expects growth in 2H24 but doesn\u2019t guide for full-year due to uncertainty. Macro conditions are miserable and caution is led by events. The next few months will be important.<\/li>\n<\/ul>\n<ul>\n<li>[00:45:24] Girish Pai at Nirmal Bang enquired about salary increases and if the quantum and timing will be same as in FY23. Amit Choudhary COO said WIPRO gave its last increase in Sept. 2Q and it will be same in FY24. However, it\u2019s too early to comment on the actual increase.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>https:\/\/youtu.be\/X9a4Gogi92g Key highlights from Wipro Ltd (WIPRO) Q4 FY23 Earnings Concall Management Update: [00:13:44] WIPRO said it hired over 22,000 NextGen associates in FY23, the highest-ever in its history. [00:14:17] WIPRO\u2019s attrition rates steadily declined throughout FY23, ending 4Q with a 14.1% attrition. Q&amp;A Highlights: [00:18:47] Sudheer Guntupalli from Kotak Mahindra asked about the underlying [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"Wipro Ltd Q4 FY23 Earnings Conference Call Insights #WIPRO #Q4 #FY23 #Earnings #Stocks","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,5075,6100],"class_list":["post-144415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-it-services","tag-software-services"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":138701,"url":"https:\/\/alphastreet.com\/india\/wipro-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":144415,"position":0},"title":"Wipro Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 17, 2023","format":false,"excerpt":"https:\/\/youtu.be\/LM-SWC6m414 Key highlights from Wipro Limited (WIPRO) Q3 FY23 Earnings Concall Management Update: [00:04:04] WIPRO delivered its highest ever bookings quarter in total contract value terms. [00:15:19] WIPRO\u2019s attrition dropped for the fourth straight quarter with attrition dropping to 21% on a TTM basis in 3Q23. Q&A Highlights: [00:26:57] Mukul\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134637,"url":"https:\/\/alphastreet.com\/india\/wipro-ltd-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":144415,"position":1},"title":"Wipro Ltd Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 13, 2022","format":false,"excerpt":"https:\/\/youtu.be\/ThJtaaEEh18 Key highlights from Wipro Ltd (WIPRO) Q2 FY23 Earnings Concall Management Update: [00:14:41] WIPRO said its attrition has continued to moderate for the third quarter in a row, down to 23% in 2Q23 and the company expects it to moderate further in 3Q23. [00:16:15] The company is certain to\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":128727,"url":"https:\/\/alphastreet.com\/india\/wipro-ltd-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":144415,"position":2},"title":"Wipro Ltd Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 2, 2022","format":false,"excerpt":"https:\/\/youtu.be\/XHZbOk3hFTM Key highlights from Wipro Ltd (WIPRO) Q4 FY22 Earnings Concall Management Update: WIPRO said that through the year, the company added over 45,000 new employees on a net basis, which was the highest ever for WIPRO. 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Thierry Delaporte CEO said that the company can sustain the growth. 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The consolidated Net Profit of \u20b93,094 Crore, up 0,06% from \u20b93,092 Crore in the same quarter of the previous year. The Earnings per Share is \u20b95.60 for this quarter.","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/2a0b9e2d-398e-4dcd-9827-8254d5bbb4a5.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":41715,"url":"https:\/\/alphastreet.com\/india\/wipro-limited-wit-q2-2020-earnings-snapshot\/","url_meta":{"origin":144415,"position":5},"title":"Wipro Limited (WIT): Q2 2020 Earnings Snapshot","author":"Toby","date":"October 15, 2019","format":false,"excerpt":"-- Wipro Limited (NYSE: WIT) reported second-quarter 2020 earnings of $0.06 per share, in line with Wall Street projection -- Revenues grew 4% to $2.14 billion, vs. $2.13 billion expected. -- In Q2, IT Services revenue grew 2.5% to $2.05 billion. -- Wipro expects IT Services revenue to be $2.065\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"Earnings Update by AlphaStreet","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-Coverage-5.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-Coverage-5.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-Coverage-5.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-Coverage-5.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2019\/04\/Earnings-Coverage-5.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/144415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=144415"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/144415\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=144415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=144415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=144415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}