‘Our core strategy is working and showing very healthy growth’

BENGALURU: Abidali Neemuchwala has completed eight full quarters since taking over as chief executive officer (CEO) of Wipro Ltd on February 1, 2016. A former Tata Consultancy Services Ltd veteran who joined Wipro as chief operating officer in April 2015, Neemuchwala expected Wipro to return to industry-matching year-on-year (y-o-y) growth by March. However, Wipro’s 5.5% y-o-y growth in the fourth quarter is far less than peers. This slow growth has prevented Neemuchwala from giving any timeline for returning to industry-matching growth. Edited excerpts from an interview: Yes, it is taking longer. There are three areas over which we need firm resolutions. First, is the HPS business (Healthplan Services). Second, is the India and Middle East restructuring, which is taking longer. Our communications business again, in Middle East, Africa and Asia is still taking longer. Now, there are parts of business already industry-matching, but then that is not how we would look at it. BENGALURU: Wipro Ltd on Wednesday reported fiscal-fourth quarter revenue growth that was in line with analysts estimates but the company said it does not expect any revenue growth in the current quarter, dashing hopes that India’s third largest information technology outsourcing company will turn the corner soon.

Wipro managed a 2.9% growth in constant-currency terms in 2017-18, implying that for the second straight year, India’s three largest services firms, including Tata Consultancy Services Ltd (TCS) and Infosys Ltd, grew slower than industry body Nasscom’s estimates.

TCS reported a 6.7% growth, while Infosys managed a 5.8% growth in constant-currency terms, which was lower than Nasscom’s 7.8% growth estimate for the country’s $167 billion information technology outsourcing industry in 2017-18.

Significantly, Bengalurubased Wipro became the first large IT outsourcing company to end the year with fewer employees than it started with, its headcount falling by 1,654 employees in 2017-18.

The company added 8,650 employees in 2016-17, underlining the challenges faced by the sector, which employed 3.7 million people.

Wipro’s dollar revenue improved 2.4% sequentially to $2.06 billion in the three months to March (1.1% rise in constant currency terms).

Net profit declined 8.6% to $277 million from $303 million in the preceding quarter, on account of the company making a one-time provision for two clients, including British contractor Carillion Plc and telecom operator Aircel, going bankrupt.