Management has said that this is the best Q4 results company has come up in last 10 years on the back of good volume, demand environment and healthy deal pipeline.
iDEAS global business line consisting of applications, data and engineering grew 2.1% QoQ in constant currency terms, while the iCORE business line consisting of digital platforms, cloud infrastructure and security practice grew by 4.3% QoQ.
Management also indicated that cloud services account for ~25% of its services and expects it grow at a higher speed than the company’s average growth rate.
Company’s margins expanded by whooping 420 bps in this quarter to 21% on YoY basis mainly on the back of offshoring and improvement in utilisation.
Company expects a growth to the tune of 2-4% in June’21 quarter, excluding the revenue from recent acquisitions like Capco and Ampion. This is likely to translate to the growth in early teens (11-13%).
Due to the acquisition of Capco, margins are expected to be at a tad lower end (by 200 bps) due to retention bonuses and higher amortisation of intangible assets of Capco.
Wipro closed 12 large deals in Q4FY21 , taking the TCV to $1.4bn. Company has also reported highest TCV in H2FY21 mainly led by increase in IT spending across industries.
Company announced that it has won a mega deal in America and would earn revenues to the tune of ~$1 bn over the deal duration.
Company has also won 5-year deal with Telefonica O2 and a deal with European mapping and location data company to help in its cloud and digital transformation.
Mergers and Acquisitions
Management said that M&A is integral to its business strategy. Over the last two quarters, company has announced acquisitions across several key markets like Asia, Europe, America, Australia and India to strengthen its local presence.
Company also announced its largest ever acquisition – Capco during the quarter and is confident that it will strengthen its position in global financial markets.
Company also acquired Ampion, cybersecurity firm based in Australia for an entire cash transaction of $117mn.
Company also successfully completed the strategic digital and IT partnership with German based METRO AG.
Wipro hired ~18k employees in this quarter, howevercompany’s attrition rate increased to ~12% as against 11% in Q3FY21.
Management has indicated chances of higher attrition in upcoming quarters.
Company is also adapting well with the immigration rules in foreign countries, especially USA, wherein ~70% of the workforce is localised.
Company implemented salary hike for ~80% of its staff in January’21 and is also looking forward to give skill based bonus.