Financial performance lagged behind Infosys and TCS, Wipro completed two acquisitions in 3QFY22 | Q3 FY22 Conference Call Highlights2 min read
- Revenue growth: Revenues grew 3% QoQ CC to USD2.64bn.
- Broad based revenue growth across geographies and verticals.
- Healthy large deal intake: TCV or total contract value of large deals is USD600mn.
- Cloud revenues grew at an accelerated rate of 30% YoY in 9MFY22.
- Management said ACV (Annual Contract Value) grew 27% YoY in 9MFY22 on account of superior execution and improving win rates (300bps (basis points) higher YoY).
- Acquisitions: Wipro completed two acquisitions in 3QFY22. The first one is Edgile, a transformational cybersecurity consulting provider that focuses on risks and compliance on information and cloud security and digital identity. The second is LeanSwift Solutions, a US headquartered systems integrator with service capabilities in ERP, e-commerce, digital transformation, supply chain, warehouse management system and business intelligence. These acquisitions will expand the capabilities of Wipro’s FullStride Cloud Services.
- Client Addition: 2, 1 and 3 clients in each in USD100mn+, USD75mn+ and USD50mn+ buckets , respectively.
- LTM Attrition: 22.7% vs. 20.5% in Q2FY22
- Gross Utilization: (75.6% in Q3 vs 78.1% in Q2)
- Employee: added ~17,500 freshers in FY22 (added ~17,000 in 9M). It plans to increase fresher intake by 70% to ~30,000 in FY23.
Company has higher attrition in the 3-8 years of experience bucket and in the areas
like cloud, Salesforce, data analytics, etc.
- Sequential margin movements: Margins declined 10bps QoQ to 17.6% due to two months of incremental impact of salary hikes and lower utilization, partly offset by continued revenue growth momentum and operating efficiencies (offshoring, automation and realization).
- Guidance: 2-4% QoQ growth in Q4FY22.
- The E&U vertical is likely to recover in coming quarters.