Wipro's CEO Discusses F2Q 2012 Results - Earnings Call Transcript
Wipro Limited (
)
F2Q 2012 Earnings Call
October 31, 2011 9:15 am ET
Executives
Sridhar Ramasubbu – Chief Financial Officer, International Operations
T. K. Kurien – Chief Executive Officer, IT Business & Executive Director
Suresh C Senapaty – Chief Financial Officer and Executive Director
Manish Dugar – Senior Vice President & Global Head, Wipro BPO
Saurabh Govil – Senior Vice President – Human Resources, IT Business
Srinivas Pallia – Senior Vice President & Global Head, Business Application Services
Jatin Dalal – Chief Financial Officer, IT Business
Soumitro Ghosh – Senior Vice President, Finance Solutions
Anand Sankaran – Senior Vice President & Business Head, India, Middle East & Africa
Jatin Dalal – Chief Financial Officer, IT Business
Rishad Premji – Chief Strategy Officer, IT Business
Analysts
Joseph Foresi – Janney Montgomery Scott
Edward Caso – Wells Fargo Securities
Trip Chowdhry – Global Equities Research
Nabil Elsheshai – Pacific Crest Securities
Swami Shanmugasundaram – MorningStar
Keith Bachman – Bank of Montreal
Anthony Miller – Tech Market View
Avishai Kantor – Cowen & Company
Presentation
Operator
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Ladies and gentlemen, good day, this is Melissa, and I will be the moderator for your conference call. Welcome to the Wipro Limited Earnings Conference Call for the second Quarter Ended September 30, 2011.
As a reminder, for the duration of this conference, all participant lines will be in the listen-only mode, and this conference is being recorded. After the presentation, there will be an opportunity for participants to ask questions. (Operator Instructions)
At this time, I would like to turn the conference over to Mr. Sridhar Ramasubbu. Thank you, and over to you, sir.
Sridhar Ramasubbu
Thanks, Melissa. Good day, and on behalf of Wipro team, a very warm welcome to all of you. This is Sridhar, and I’m joined by Rajendra and Aravind from IR team in Bangalore. We are pleased to host Wipro’s 2Q FY ‘12 earnings call. Regarding the materials for this call, we issued the press release package yesterday late night EST, and we will have time for Q&A at the end.
The format for today’s earnings call is as follows; T. K., CEO of Wipro IT business will share his perspective on IT business; Suresh Senapaty, CFO; will give an overview on Wipro’s businesses and also comment on the IFRS financial results for the quarter ended September 30, 2011. They are joined by business heads and other senior members of the Wipro management team will be happy to answer your questions.
As always, elements of this call and the management’s view may be characterized as forward-looking under the Private Securities Litigation Reform Act 1995, and are based on management’s current expectations and are associated with uncertainty and risks, which could cause the actual results to differ materially from those expected. These uncertainties and risk factors have been explained in detail in our filings with Securities and Exchange Commission in the USA.
We do not undertake any obligations to update forward-looking statements to reflect events or circumstances after the date of filing thereof. The call is scheduled for an hour. The presentation of the 2Q ‘12 results will be followed by Q&A. The operator will walk you through the Q&A process. The entire earnings call proceedings are being archived and transcripts will be made available after the call at our company’s website. Replay of today’s earnings call proceedings will also be available via telephone post the call. During this call, I am also available on e-mail and through mobile as well to take any questions and table it to the Wipro team in case you are unable to ask questions for any technical reasons.
Ladies and gentlemen, over to T. K., Wipro, Bangalore.
T. K. Kurien
Good morning ladies and gentlemen. This is T. K. Kurien, I run the IT business of Wipro. In the last few quarters, we have put together in place Wipro’s foundation for change. Although we continue to fine-tune our approach, I’m convinced that we’re moving in the right direction. As an example, we fed the top end of our guidance and also had good volume growth of 6% and about 4.6% organic volume growth. This is the best that we’ve had in the last four quarters.
In constant currency, we grew about 5.5% sequential. We added over 5,200 med people and we reduced quarter-annualized attrition by 4.7% to 18.5%, again the lowest in the last six quarters. Fundamentally, we are making progress every quarter.
The realignment of structure, focus on account mining and alignment of accountability at the account level is beginning to show results. Our top 10 accounts contributed immensely to our revenue growth. We now have five new relationships dropping $100 million in revenue compared to one customer a year ago. Also for the first time, our relationship with our largest customer is greater than $200 million in annualized revenue.
The result of my conviction on our strategy is based up on the leading indicators that we track. In our business, feedback is a leading indicator of future business.
Operator
Excuse me, this is the operator. This is the operator, the Bangalore line connection is lost.
T. K. Kurien
Yes, yes, now we are connected.
Operator
Sure. Please go ahead.
T. K. Kurien
The reason of my conviction on our strategy is based up on leading indicators that we track. In our business, CPAP is a leading indicator of future business. I’m very encouraged by the 8% improvement in feedback in new account, another lead indicator that we track pipeline, the quality of pipeline. Our pipeline is showing a positive trend and we are currently focusing some large deals including 25 deals of $50 million or more.
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