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<ul><li>We are not the only ones seeing a dichotomy between volumes and revenues, said <keyword id="10862" type="General" weightage="100" keywordseo="wipro" source="Orion">Wipro</keyword> CEO.</li><li>He expects its large deal <keyword id="2415150" type="General" weightage="50" keywordseo="tcv" source="Orion">TCV</keyword> of $1.3 billion wins to drive quality revenue next year.</li><li>The typical pyramid of large and small deals has evolved, and small deals in the market are much fewer. </li></ul> After Wipro posted a <a href="https://www.businessinsider.in/business/news/wipros-revenues-fall-2-pc-in-q2fy24-guides-for-a-steeper-fall-in-q3/articleshow/104527236.cms" data-type="tilCustomLink" target="_blank">sequential revenue fall</a> for the third consecutive quarter, its CEO <keyword id="3808309" type="General" weightage="50" keywordseo="thierry-delaporte" source="Orion">Thierry Delaporte</keyword> said that it will see a rebound in the next few quarters. This was after the company said that its upcoming quarter’s constant currency revenues could fall anywhere between 1.5-3%, after its Q2 revenues fell 2%. “We are not the only one seeing a dichotomy between volumes and revenues. For several years, we have seen growth and in the last few quarters what we are seeing is reflective of the industry,” Delaporte said at the company’s <keyword id="56260" type="General" weightage="60" keywordseo="Q2-earnings" source="Orion">Q2 earnings</keyword> press conference. Like many of its peers, the Bengaluru-based IT major reported rampdowns, furloughs and reductions – that’s resulted in revenue leakage. The company, which has a larger exposure to consulting business in the BFSI segment, was hit harder than its peers. The constant currency revenues of its strategic business unit Americas 1 (healthcare, consumer goods, retail and Latin America etc) grew by 0.9% QoQ, its Americas 2 unit (banking, manufacturing, hi-tech, utilities and Canada) fell by 2.6%. Europe saw a steep fall of 5.4% sequentially. “Given our strong order booking in Europe, we’re confident of a swift rebound,” said Delaporte. Top-heavy deal book The company’s total bookings for the quarter stood at $3.8 billion. Its large deal total contract value (TCV) stood at $1.3 billion – which is the highest it has seen in the last nine quarters. “Our large deals will drive quality revenue for the next year,” he said, adding that he derives confidence from the number of large deals they have booked. Yet, the total number of new customers for the quarter were at 49, which is much lower than the 65 in Q1. On a year on year comparison, its new customer number fell over a half from 128. Its total number of active customers also fell both sequentially and on an annual basis to 1,393. Explaining this, Delaporte said that the typical pyramid of large and small deals has evolved. “There are a lot less of the very very small deals. It’s our strategy that we want to reduce the number of small clients and focus on large accounts and grow them. Because, a very large number of small deals are not predictive,” he said. The company kickstarted a programme three years back to improve its margins. Even in a difficult quarter, the company said that it was able to deliver a 10 basis point improvement in operating margin to 16.1%. It also promised that it will remain range-bound without any guidance for the quarters ahead. The company said that it is confident of discretionary spending coming back to the system which will set it back on the track. “It’s very important for Wipro to keep focus on key elements of transformation,” said Delaporte.

Wipro CEO expects revenues to rebound in the next few quarters

<ul><li><keyword id="10862" type="General" weightage="80" keywordseo="wipro" source="Orion">Wipro</keyword>’s board approved the merger of five of its subsidiaries into the company.</li><li>Wipro said that it has 22 accounts above the $100 million range as of September end.</li><li>Its voluntary attrition came in at a nine-quarter low of 13.4% in the second quarter.</li></ul> Wipro, the country’s fourth largest IT services company, reported a 2% sequential fall in constant currency revenues for the July-September quarter on Wednesday. This is the third consecutive quarter where it has reported sequential fall in revenues. Gross revenues declined 0.01% to ₹17,365 crore year-on-year. The IT major has also guided for yet another weak quarter ahead. It expects revenues to fall anywhere between 1.5-3.5% in the third quarter of FY24. The fall was steeper in its quarterly net profit, which declined by 8% in rupee terms to ₹2,667 crore against ₹2,887 crore it reported in the previous quarter. The Street was expecting Wipro to report a 1% sequential fall in constant currency revenues. In dollar terms, its IT segment revenues fell 2.3% to $2,713.3 million, the company said on Wednesday. Commenting on the quarterly numbers, <keyword id="3808309" type="General" weightage="50" keywordseo="thierry-delaporte" source="Orion">Thierry Delaporte</keyword>, Wipro’s CEO and MD, said: “Due to our higher exposure to the consulting and BFSI sector in the Americas, we have seen a higher than usual impact of macroeconomic conditions. As the markets start to turnaround, on the back of our transformation and efficiency plays, we expect to see improvement in the coming quarters. Wipro said that its total bookings for the quarter stood at $3.8 billion for the quarter which is 6% higher than what it was in the same quarter last year. Its large deal booking is at $1.3 billion – which is the highest it has seen in the last nine quarters. It said it has 22 accounts above the $100M range – twice as much they had in FY21. Wipro’s operating margin for the quarter was at 16.1%, up 10 bps QoQ. The company said it expects the margins to remain range-bound as seen in the last few quarters. Employees to get 80% variable pay Wipro’s voluntary attrition has continued to moderate sequentially, coming in at a nine-quarter low of 13.4% in the second quarter. The company also said it will give 80% of the variable pay to its employees based on performance. It did not disclose its plans of hiring at campuses this year. “Hiring is a function of demand and benching. We are focussed on honouring our commitments made to people before going to campuses, and there are still some offers left to honour,” said Saurabh Govil, chief human resources officer at Wipro. The company’s board also approved a scheme of amalgamation to merge five of its wholly-owned subsidiaries with itself. The subsidiaries are Wipro HR Services, Wipro Overseas IT Services, Wipro Technology Product Services, Wipro Trademarks Holding and Wipro VLSI Design Services. “The scheme is subject to necessary statutory and regulatory approvals under applicable laws, including approval of the National Company Law Tribunal,” the company said. IT companies are facing demand headwinds in their key markets. Wipro, like other peers, had also indicated that its revenues could contract during the second quarter. In July, the company had said while announcing its first quarter earnings that it expected revenue from IT services to be in the range of $2,722 million to $2,805 million. This would translate to sequential guidance of -2 per cent to +1 per cent in constant currency terms.

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Wipro CEO expects revenues to rebound in the next few quarters

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