Gaurav Rateria

Gaurav Rateria of Morgan Stanley asked about the company's view on AI-led search as an opportunity versus a threat and the initiatives being taken, and questioned the reason for rising A&P spend as a percentage of gross bookings over the past three years.

Answer

Group CEO Rajesh Magow positioned AI as a significant opportunity, stating that MakeMyTrip's vast data repository allows it to lead innovation in customer experience and productivity. Group CFO Mohit Kabra addressed the A&P spend, explaining that the trend is a function of a changing business mix towards higher-margin segments. He suggested that viewing the spend as a percentage of adjusted margin, which has been stable at around 47%, provides a more accurate picture of efficiency.

Gaurav Rateria from Morgan Stanley asked about the current pace of new customer additions versus last year, the reason for higher ad spend as a percentage of gross bookings, and the competitive dynamics in the hotel segment across different price points.

Answer

Rajesh Magow, Co-Founder and Group CEO, and Mohit Kabra, Group CFO, explained that new customer acquisition remains robust, with a repeat customer rate of ~73% and a total base of 80 million users. Kabra added that net new additions are typically 1.5-2.5 million per quarter. He clarified that marketing spend as a percentage of gross bookings has remained stable and in line with seasonality, trending below 5%. Regarding hotel competition, Kabra noted the online market is less penetrated than air, with competition including global OTAs, especially in the premium segment.

Gaurav Rateria asked for a breakdown of growth driven by repeat versus new customers, the trajectory of margins for the second half of the year, and any available metrics on cross-selling from newer segments like trains.

Answer

Group CFO Mohit Kabra stated that repeat customers consistently account for about 70% of transactions, making blended acquisition cost the most appropriate metric. He expects margins to remain stable and in range, similar to H1, as seasonality is balanced across both halves of the year. For cross-sell, he pointed to the strong growth in the "other" segment's gross bookings and the high repeat transaction rate as indicators of success.

Gaurav Rateria from Morgan Stanley asked about the strategic changes enabling Wipro to win deals in areas where it wasn't traditionally strong, the status of large projects that were previously paused, and whether the company still aspires to operate within the 17% margin band.

Answer

CEO & MD Srini Pallia attributed recent deal wins to the company's strategic focus on being 'consulting-led and AI-forward,' investing in domain expertise, and growing large accounts. He noted that some projects, particularly in sectors like manufacturing affected by tariffs, remain paused. CFO Aparna Iyer confirmed that the 17% to 17.5% margin band remains an aspiration, but the immediate priority is ramping up new deals, which may require investments that could pressure margins in certain quarters.

Gaurav Rateria asked about the macro assumptions embedded in the Q1 guidance, whether a decline in smaller deal TCV was hurting revenue conversion, and what utilization rate is needed to maintain margins.

Answer

CEO Srinivas Pallia explained the guidance range reflects uncertainty: the upper end assumes demand improves, while the lower end factors in a potential worsening. CFO Aparna Iyer acknowledged slower growth in smaller deals but called a direct link to conversion speed 'conjecture.' She stated that maintaining margins depends on several levers, with utilization being one that needs to be sustained or improved.

Gaurav Rateria congratulated the team on strong deal execution and asked about the drivers behind the improved large deal momentum, questioning its sustainability. He also inquired whether the margin improvement initiatives have fully played out or if there are further tailwinds expected in the coming quarters.

Answer

CEO Srinivas Pallia attributed the large deal success to a proactive, consulting-led approach with AI-powered solutions and disciplined pipeline management. While noting large deals are binary, he highlighted the consistency of booking over $1 billion per quarter. CFO Aparna Iyer added that margin optimization efforts are ongoing to manage headwinds like wage hikes and Q3 seasonality, implying more work is in process.

Gaurav Rateria from Morgan Stanley asked about the small deal environment and its relation to the guidance midpoint, and inquired about the levers for margin improvement in FY'26 given that slower growth could create operating deleverage.

Answer

CFO Jayesh Sanghrajka reiterated that the guidance range accounts for various environmental scenarios. Regarding margins, he expressed confidence in offsetting pressures through Project Maximus initiatives, highlighting the 50 bps margin improvement in FY'25 despite headwinds like salary increases and large deal ramp-ups. He stated the company's endeavor is to improve margins further in FY'26.

Gaurav Rateria inquired about the primary reasons for the upward revision in revenue guidance, whether generative AI is triggering large-scale transformation deals, and the potential margin tailwinds in H2 to counteract wage hikes.

Answer

CFO Jayesh Sanghrajka explained the guidance increase was due to a strong Q2, broad-based performance, volume momentum, and a double-digit rise in the pipeline for deals under $50 million. CEO Salil Parekh clarified that while generative AI is a key productivity component in large deals, it is not yet the primary driver. Jayesh Sanghrajka noted that H2 margin tailwinds from 'Project Maximus' initiatives are expected to offset headwinds from compensation increases and seasonality.