Wipro Limited

Ladies and gentlemen, good day and welcome to the Wipro Limited Q1 FY20 quarterly investor conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Aparna Iyer, Vice President and Corporate Treasurer. Thank you and over to you.

Thank you, Stanford. A very warm welcome to our Q120 earnings call. We will begin the call with the business highlights and overview by Abed, our Chief Executive Officer and Executive Director of the board, followed by financial overview by our CFO, Jatin Dalal. Afterwards, the operator will open the bridge for Q&A with our management team. Before Abid starts, let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in our detailed filings with ACC. Wipro does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing. The conference calls will be archived and a transcript will be made available on our website. Over to you Abit.

Thank you Aparna and good evening ladies and gentlemen. I'm joined here by my leadership team and it's a pleasure to speak to you all and share the results of our first quarter. Let me quickly provide an update on the Q1 performance, our view of the demand environment, and the progress on the six strategic themes that we update you every quarter. We've had a slower start to the year than we had expected, with revenues being down sequentially by 0.7%, which is disappointing, but it is within our guidance range of minus one to plus one. Our year-on-year growth Q1 is typically a weak quarter for us and we entered the quarter with macro uncertainties. But during the in-quarter execution, we could not overcome some of them. During the quarter, BFSI grew 11.2% year-on-year in constant currency and consumer business grew at 7.7% year-on-year. Consumer was specifically impacted by the completion of certain large programs and while we have a very good deal pipeline, we did have deferral of certain programs that we had expected to start. This business should pick up from Q2 and beyond. Energy and utilities and the communications business continued to grow around 7.8 and 8.8% year on year in constant currency terms. We continue to see softness in our manufacturing and health business. The overall demand environment is stable in the global markets, but in pockets like banking and financial services, the decision making has been slower due to the overall macro environment. Capital markets in particular and banking in Europe is seeing softness. We are hopeful that some of this delay and deferral is temporary and will improve as we progress through the year. Our utilization dipped this quarter for two reasons. One is because of fresher hiring that we have done and the second is the bench that we had in anticipation of ramping up some of the projects which have got delayed. In Q1, we have hired 6,000 freshers and onboarded them globally. We continue to Investing in our employees and we completed our annual merit salary increase process across the organization as planned. Our attrition on a trailing 12-month basis remained in a very narrow band at about 17.6%. Now let me go through a quick update of our six strategic themes. Our digital business continues to see strong growth with a quarterly revenue growth of about 5.6%. and annual growth of 34.6%. Digital revenue now contributes 37.4% of our overall revenues. Our wins in digital have demonstrated this quarter that our leadership position in both digital and cloud transformation provides our clients end-to-end capability they require for growth and future business. Just to give you an example, a large North American health insurer has selected Wipro Digital to support its ongoing engineering transformation and move to new ways of working and help with the organizational change management to improve speed, quality, and volume of IT software releases across its IT environment. We continue to be focused on client mining. Our top 10 accounts grew 13.2% year on year. We have added three more clients to the $100 million annual revenue, trailing 12 months revenue bucket this quarter. And we've added a client in the $75 million plus bucket as well. We continue to cross-sell into our existing accounts across various services. This quarter, as an example, we have been chosen as a partner to modernize the business services for a leading technology provider. It entails transformation of the entire stack including applications, infrastructure and associated services and modernize it to the cloud. This used to be an application services account for us where now we will be able to provide infrastructure services as well. We continue to drive hyper automation and now Wipro Homes is in over 350 clients with our percentage of work done by bots exceeding 15% in Q1. In our fixed price engagements, whose mix has gone up to about 61.6%. As an example, a Europe-based pharmaceutical company has selected Wipro to apply intelligent automation for its procurement, HR, taxation and legal functions. Leveraging the automation capabilities of Wipro Homes and its automation ecosystem, Wipro will build use cases across all of these processes and set up a bot factory specifically for this customer. Helping them transform their operations. We continue to invest in IT platforms and IP. In Q1, we filed another 26 patents, taking our total count of patents filed to about 2,200 plus. And now we have 602 patents granted within our portfolio. Leveraging Wipro Ventures investments continues to help us win deals. And a global beverages company has selected Wipro to improve the overall customer experience and boost customer trust. During this engagement, Wipro will support the company's managed network and help enhance its cybersecurity and threat prevention postures, leveraging our cybersecurity platform, which has embedded in it some of the innovation from our Wipro venture investments. We have seen very good progress with Topcoder with a number of clients, both enterprise customers for what we call as enterprise crowdsourcing as well as the typical gig economy customers who want to leverage the gig economy. Smart enterprises are using the gig economy to drive innovation and are starting to do so at scale. This is what we believe is the future of how IT services will be provided and we are quite heavily invested in this. Freelancers are being tapped on demand to spur and execute on technology projects utilizing AI, computer vision, IoT, machine learning, mobile and even quantum computing. Innovation is happening at the edge and in Topcoder, Wipro's crowdsourcing platform, we lead and help enterprises drive innovation and execution with the gig economy. With 1.5 million community members worldwide and more than 15 years of enterprise experience, Topcoder now is one of the most sophisticated and simplest way for enterprises to access talent and execute digital engagements. We have onboarded a number of customers from our existing client set as well as expanded customers that came along with the Topcoder acquisition. We completed an engagement leveraging top coder and talent at Wipro, which helped address oncologists at the Dana Faber Institute, working closely with the Harvard Medical School to help identify and treat lung cancer more effectively, essentially using artificial intelligence and visual computing technologies. We were able to develop an algorithm which is able to detect the impacted areas for a lung cancer patient as accurately but three times faster as an oncologist. And this kind of innovation can be used to increase the reach of medical expertise and oncology expertise across the globe. Last month this has been published in JAMA which is the Journal of American Medical Association and we feel that these kind of engagements and impact could be tremendous through the investments that Wipro is making. We continue to invest in talent and localization and now our U.S. localization has crossed 65% including setting up of centers across the U.S. In conclusion, while we had a slower start to this year, we believe Based on the strong pipeline of deals and the differentiated capabilities that we have invested in, we will gain back momentum as we progress through the year. I now request Jatin to give some color on our financials.