Wipro Ltd. Q4 FY2024 earnings call

• Business Overview: Srini Pallia highlighted Wipro's 30+ year history, global presence, and commitment to sustainability. - Financial Performance: Q4 IT services revenue growth, consulting business traction (Capco revenue up 6.6% q-o-q, order bookings up 43.6%), total order bookings $3.6B in Q4, $14.9B FY '24; large deals: Q4 won 18 large deals (TCV $1.2B), FY '24 TCV $4.6B (17.4% growth y-o-y). - Investments and Acquisitions: Acquired majority share in Aggne, launched Wipro Enterprise Artificial Intelligence Ready Platform with IBM, and a leading global apparel brand chose Wipro for GenAI solutions. - Focus Areas: Accelerate large deal momentum, strengthen large client relationships, focus on industry-specific AI-infused solutions, build AI-ready talent, simplify operating model.

In Q4, IT services revenue grew sequentially by 0.1% in reported currency. For FY '24, IT services revenue was $10.8 billion in reported currency. Market unit performance: Americas 1 had Q4 revenue down 1.8% q-o-q and full year up 0.2% y-o-y, with order bookings in TCV terms up 24.9% full year. Americas 2 saw Q4 growth of 1.9% q-o-q but full year down 6.1% y-o-y, ~60% of revenue from BFSI. Europe had Q4 revenue down 0.1% q-o-q and full year down 7%, but sectors like Switzerland and Southern Europe showing recovery. APMEA had Q4 revenue down 2.2% q-o-q and full year down 4.5%, with margin improvement of 235 basis points for the full year. IT services operating margins expanded to 16.4% in Q4 (40 bps improvement from prior quarter) and closed FY '24 at 16.1% (50 bps expansion from FY '23).

• Q1 '25 Guidance: Sequential growth of minus 1.5% to plus 0.5% in constant currency for Q1 '25; margins expected to stay range bound.

• Macroeconomic Uncertainty: Economic environment still uncertain with potential short-term challenges. - Discretionary Spend Impact: Weakness in discretionary spending affecting revenue conversion from bookings to revenue. - Client Ramp Down: Existing projects finishing without immediate replenishment affecting revenue growth.

Q: Moshe Katri asked about large deal momentum, sector-specific offerings, and using Capco.

A: Srinivas Pallia responded on simplifying operating model, being proactive with clients, and leveraging Capco in BFSI.

Q: Abhishek Kumar asked about Capco growth and Q1 guidance.

A: Aparna Iyer discussed macroeconomic environment and green shoots in Capco.

Q: Ravi Menon asked about sector performance and utilization.

A: Aparna Iyer talked about sector green shoots and utilization leverage.

Q: Kawaljeet Saluja asked about Wipro's challenges and churn.

A: Srinivas Pallia and Saurabh Govil discussed focus on execution and talent development.

Q: Gaurav Rateria asked about mega deals and Capco deals.

A: Srinivas Pallia and Aparna Iyer spoke about proactive deal shaping and Capco's synergy deals.

Q: Kumar Rakesh asked about large deals and smaller accounts.

A: Aparna Iyer discussed conversion of large deals to revenue and no change in strategy for smaller accounts.

Q: Yogesh Aggarwal asked about structure and headcount.

A: Srinivas Pallia and Saurabh Govil talked about maintaining current structure and headcount flexibility.

Q: Sudheer Guntupalli asked about change fatigue and Capco margins.

A: Srinivas Pallia and Aparna Iyer discussed execution focus and lag in Capco's margin impact.

Q: Sandeep Shah asked about execution rigor and M&A.

A: Aparna Iyer and Srinivas Pallia spoke about execution focus and selective M&A.