Wipro’s new CEO Thierry Delaporte said the IT services major will focus on both growth and profitability ‘as there was no choice.’
His comments came in the backdrop of the company reporting an almost unchanged consolidated net profit of ₹2,412 crore crore for the first quarter of FY21.
Consolidated revenue rose 1.34% year-on-year to ₹14,913.10 crore during the quarter. Wipro ‘cannot choose between growth and profitability but will focus on both’ as there was no choice, he said while announcing the first quarter results on Tuesday.
“We have our own trajectory and we will build our own trajectory in the years to come,” he added.
Responding to a query, he said, “I am a bit conscious in terms of projections. It is difficult to say how things are unfolding from a pandemic standpoint. We don’t know how this is going to evolve. We will come back to normal course and provide guidance when the time is right for it.’’
Closer to customers
However, he said, during the pandemic, “Wipro has connected with the customers more closely than ever during the first quarter.”
Mr. Delaporte further said the big agenda would be a focus on “obsessive growth,” adding it would start with the way Wipro serves top clients, develops relationships, invests in services and solutions that matter to them the most and better leverage its relationships with technology partners such as Microsoft.
“It is [in] my nature to change the status quo. We will simplify processes and systems internally so that more time can be devoted to customers,’ he added.
‘Good order book’
On the demand environment, Jatin Dalal, CFO, said, “We have done very well in Q1 with only 4,000 to 5,000 of our employees coming to office. The order book looks quite good in the context of the environment.”
On the results, Mr. Dalal said, “We expanded margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and the rupee depreciation. We also continued to sustain robust cash generation with operating cash flows at 174.9% of net income.”
During the quarter, Wipro hired 7,000 people at the gross level and indicated it would continue to hire in Q2, based on demand.
