Ravi Menon

Ravi Menon asked about the organic growth outlook for the next quarter, considering potential slight declines and Capco's recovery from furloughs, and if sequential growth is anticipated beyond Q4 given the pipeline and demand environment. He also inquired if clients are awarding both cost optimization and transformation projects to the same vendor, and which segments the Harman DTS acquisition is expected to improve win rates.

Answer

Aparna Iyer (CFO, Wipro) mentioned that Q4 guidance reflects current visibility, with furloughs partially offset by fewer working days. Srinivas Pallia (CEO, Wipro) noted no significant change in the demand environment for discretionary spend, with January being key for budget finalization. He highlighted a strong pipeline in cost optimization and vendor consolidation, with savings reinvested into AI and advanced transformation, adding that vendor consolidation strategies vary by client. Regarding Harman DTS, Srinivas Pallia stated it enhances design-to-manufacturing and AI-powered product innovation, primarily benefiting the Tech and Communications sector, followed by Health, Consumer, and EMR.

Ravi Menon from Macquarie expressed surprise at the potential organic sequential decline in Q4 despite seasonal growth and Capco emerging from furloughs, asking about the possibility of sequential growth beyond Q4 given the pipeline and demand environment. He also inquired whether clients typically award both cost optimization and transformation projects to the same vendor and which segments are expected to see improved win rates due to the Harman DTS acquisition.

Answer

Aparna Iyer, CFO, explained that Q4 softness is due to lower working days partially offsetting furlough recovery. Srinivas Pallia, CEO, noted no significant change in the demand environment, with the pipeline dominated by cost optimization and vendor consolidation, and clients reinvesting savings into AI. He stated that client approaches to vendor consolidation are mixed. For Harman DTS, he identified Tech & Communications, Health, Consumer, and EMR as key sectors for improved win rates due to its design-to-manufacturing and AI capabilities.

Ravi Menon asked if Wipro's current year-on-year organic growth, now aligning with peers, is sustainable and if the company anticipates further improvement. He also inquired about any specific revenue headwinds for Q3 beyond typical seasonality.

Answer

Srinivas Pallia, CEO and MD of Wipro, stated that the focus is on executing current deal wins, which have varying ramp-up rhythms, and converting a robust pipeline into future bookings and revenues. He emphasized the positive midpoint of the Q3 guidance as a first step. Aparna Iyer, CFO of Wipro, confirmed there are no specific headwinds to revenue for Q3 beyond seasonality.

Ravi Menon from Macquarie asked if Wipro's current year-on-year organic growth, which is in line with peers, can be sustained or further improved. He also inquired about any specific non-seasonal headwinds anticipated for Q3 FY26.

Answer

Srini Pallia, CEO and MD, Wipro, emphasized the focus on executing current deal wins and converting a robust pipeline into future bookings and revenue, indicating that the company is focused on current quarter guidance and future execution. Aparna Iyer, CFO, Wipro, stated that there were no specific non-seasonal headwinds for Q3 FY26.

Ravi Menon of Macquarie Group sought clarification on the seemingly contradictory commentary about the Americas—optimistic pipeline versus weakness in specific sectors like manufacturing and retail. He also asked if the sharp decline in Europe was temporary and requested details on the Q1 restructuring charge.

Answer

CEO & MD Srini Pallia detailed the Americas outlook by sector, highlighting positive traction in BFSI, Technology, and Healthcare, while acknowledging challenges in Consumer and Manufacturing. For Europe, he noted a strong pipeline and expects a turnaround in H2, aided by the ramp-up of the Phoenix deal. CFO Aparna Iyer explained the restructuring cost pertained to a one-off event involving a small number of associates in Europe and is unlikely to recur.