Wipro Limited

Ladies and gentlemen, good day and welcome to the Wipro Limited Q2 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. Warm welcome to our Q2 earnings call. We will begin the call with business highlights and overview by Abed, our Chief Executive Officer and Managing Director, followed by financial overview by our CFO, Jatin Dalal. Afterwards, the operator will open the bridge for Q&A with our management team. Before our bit 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 Reforms 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 SEC. WIPRO does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing. The conference call will be archived and a transcript will be made available on our website. Over to you, Abid.

Thank you, Aparna. Good evening and good morning, ladies and gentlemen. I am joined here by my leadership team and it is a pleasure for us to speak to you. Let me quickly provide you an update on the Q2 performance, our view of the demand environment, and the progress on our strategy. We had a good in-quarter execution on both revenue and margins, considering the slow start that we had this fiscal year. Our revenues grew by 1.1% in constant currency terms at the midpoint of our guidance range. For H1, our growth was 4.8% year-on-year, In line with our expectations, our consumer business grew well at over 6% year-on-year, Srinivas Pallia, Anup Purohit, Sanjeev Jain, Nagendra Bandaru, Aparna Iyer, Jasjit Singh Kang We see an uptick in the demand for health outside of HPS. Our subsidiary that services are ACA clients. And we've had some good wins in the digital space, in the healthcare clients. The demand environment remains unchanged from what I had shared last quarter, though there continues to be an overhang of macro uncertainty in certain sectors. Our US growth has been pretty strong while Europe continues to be weak. We continue to see a robust pipeline and the momentum of order book in Q2 has been better than Q1 and some of the deals that we had mentioned were delayed. Signing in Q1 have been signed in Q2. The restructuring of our India and Middle East business is going very well and it is reflected in some of the deals We have delivered operating margins of 18.1% in Q2, which is comparable to 18.4% in Q1 after absorbing the incremental impact of wage hike for two months and investing in bench for growth. Our margins year on year have remained in a narrow band since Adjusting for the one-time impact of the customer settlement in Q2. Earlier this year, we sharpened our strategy into four pillars of business transformation, modernization, connected intelligence, and trust, which is enabled by talent engineering, IPs and platform, and open innovation. In order to deliver on customer needs across these four areas of our strategy, we have been investing On building capabilities in digital cloud engineering and cyber security and risk services. I'll give you some updates on each one of these four big bets. Our global investments in digital have created the requisite presence, experience and scale to support transformation not just in our core markets where it started, but also in the emerging markets. We are winning integrated transformational deals In Canada, Australia, APAC and of course we continue to win deals in US and UK. In digital, our revenue grew 7% quarter on quarter and now digital contributes just under 40% of the company's revenues. For example, in Canada we are working with a midstream energy company on their digital transformation journey to significantly enhance the working experience and job satisfaction Srinivas Pallia, Anup Govil, Aparna Iyer, Jasjit Singh Kang Second is cloud. Our business-first approach to cloud adoption and building domain-centric solutions with our cloud service providers as our partners has made Wipro a preferred cloud transformation partner for many of our customers. We have heavily invested in cloud studios to help our customers move to cloud at an accelerated pace. It includes lift and shift, refactoring of applications, replatforming, and moving to truly agile and DevOps to leverage the power of cloud in a highly automated and industrialized approach. Our strength of our offerings and market presence and success is acknowledged by many industry analysts in their reports. As an example, a global US lifestyle apparel company has partnered with Wipro to Srinivas Pallia, Anup Purohit, Sanjeev Jain, Nagendra Bandaru, Aparna Iyer, Jasjit Singh Kang Engineering NXT continues to deliver these services by leveraging our innovative IP-driven solutions, rigorous engineering processes, and new-age crowdsourced and global shore delivery models. Historically, Wipro's engineering service practice, as you may be aware, was quite focused on the tech vertical. With Engineering Next, we are expanding our services across many more verticals where we are seeing some very good traction. As an example, a US-based global medical device leader has awarded Wipro a multi-million dollar deal to enable compliance with the European medical regulatory norms, leveraging expertise of Wipro Engineering Next. And the fourth big bet is cybersecurity. We are focused on building cyber defense assurance platform and expanding to IoT security practice to address demand due to expanding attack surfaces with connected systems. Cybersecurity as a service offering grew 16.6% year-on-year in Q2. As an example, a large US-based bank has selected Wipro to bolster its cybersecurity defenses and address issues identified during various internal and external audits. Wipro will design and implement appropriate security controls besides providing incident management and support optimization of the existing risk and control mechanisms Self Assessment Process of the Bank As you are aware, we have made a number of venture investments from Wipro Venture in this space which are all leveraged to provide these services. We continue to focus on client mining and drive digital and business transformation in accounts that bring together design, domain and consulting capabilities and help us engage in strategic conversations proactively and various business stakeholders within our accounts. As an example, a leading North American bank with whom Wipro has strategic relationship has awarded a multi-year application development and support contract which is the entry of a new service line cross-selling into this account aimed at getting products to market faster and improving customer experience. Our strategy that I articulated is supported by our M&A, our IP and platforms, talent reskilling and localization across the markets that we work, where we continue to remain very focused. We are building a robust pipeline of large deals proactively to meet our ambitions of growth. In an environment with ever-changing technology, people remain our primary assets. Our voluntary quarterly annualized attrition rate has dropped from about 17.9% to 16%. We continue to drive localization and now U.S. is just under 68% local workforce for us. And we continue to do campus hiring, deepening employee engagement, and make significant investments in training and reskilling our workforce. On automation, The work done by bots in fixed price projects has improved from 15.3% in Q1 to 16.5% in Q2. In conclusion, despite the current macro environment, we continue to see an improving quarterly growth trajectory which is reflected in Q2 performance and Q3 guidance. I will now request Jatin, our CFO, to give you an update on our financials.