Consistency is driving confidence: Wipro CEO Delaporte – Times of India

BENGALURU: IT major Wipro on Thursday posted a 27.7 per cent jump in consolidated net profit at Rs 2,972 crore for the March 2021 quarter.
TOI spoke to Wipro CEO Thierry Delaporte after the Q4 and full year 2020-21 results announcement. Excerpts:
You’ve called out a June quarter sequential revenue guidance of 2-4%, translating into a year-on-year double digit growth of 11-13%. Wipro seems to be batting on a different wicket. What are the drivers that underscore this renewed confidence?
There is no doubt a new wind of change, energy and confidence and boldness in Wipro. If we look at what we have done collectively, I’m proud how the teams have been stepping up, driving those priorities with passion and energy.
We have had a good impact in the market in terms of bookings in the last six months, and month after month. We have closed two large deals, which we hadn’t done for a while. In six months we would have closed the highest ever order book in a semester or so.
Consistency is driving confidence. We are not overpromising and we are progressing step by step. The long-term relationship with newer clients is very encouraging.
If you look at the BFSI space, the Capco acquisition is a strategic change for us and it allows us to get a different position with our clients. New additions to the team, new organisation model and absolute focus on the markets, discipline and intensity.
We gather Cognizant was pursuing Capco as much as Wipro was, and you won because you paid more for it. What advantage will Capco provide?
Lot of companies would have been looking at Capco and I wouldn’t comment on that. It is a very strong brand and certainly well-known in the BFSI sector, and given the quality of its solutions and leadership and client portfolio, it’s unique.
The opportunities are significant and the level of complementary offerings is high. We will be able to drive new streams of revenue, but we need to be with them from thinking all the way to execution.
What really went behind the large deals (TCV of $1.4 billion) that you won? The Metro deal win seems to have been predominantly because of your relationship with them. How is the senior leadership geared towards winning new large deals?
We are building a large deals team across the organisation and bringing the expertise of people who have gone after large deals in the past from a technical, commercial, architect or a financial standpoint.
We have a very strong relationship with large tech firms. But what we have observed over the last few months is when we are going together as a coalition, we are a lot stronger.
It’s a limitation when you have a strategic discussion with a client and you won’t be able to execute it. It’s also a limitation when you’re not at the beginning of the discussion, but merely on the execution side.
You came from a world with a lower-margin play and now, at Wipro, the margin is important, some peers operate at 24%-26%. Do you think you can maintain margins at 20% levels?
We have been clear that we will not compromise margins for growth. We also know attention to margins is important and losing sight on margin performance is risky for the organisation.
We are comfortable to maintain 19% levels over the next few quarters. We will maintain that level of profitability net of the Covid effect.