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Wipro
We hosted Wipro’s Vice President of corporate treasury Mr. Rajendra Shreemal for an
interaction with investors at the DB Access India Conference. The salient points discussed in
these meetings were as follows:
Revenue growth momentum to return in-line with large cap peers in 2HCY11E
Following the recent dismantling of the Jt-CEO structure and the widespread changes in the
organisation structure and alignment, the management expects to return to revenue growth
in line with large cap peers in 2HCY11. While one of the key reasons for the speedy
turnaround in business momentum for the company can be the strong overall demand
environment for offshore IT service providers, another important aspect is that Wipro has
now a greater focus on key verticals. For instance the company has vertical heads in North
America which helps in faster decision making. Thus the company has done away with
country head structures in matured markets but has persisted with it in newer markets like
Germany, France and Asia-Pac, which are yet to achieve scale.
Growth across all key markets and geographies
The company is witnessing broadbased growth across all key verticals like BFSI ( banking,
financial services and insurance), healthcare and pharma an retail. Over the near term the
company expects healthcare and pharma (~11% of revenues) to be a key growth driver. Early
investment in geographies like Germany, France, Latam and Australia is also driving strong
revenue momentum. On pricing increase customers are moving to ‘discussion’ from
‘dismissing’. As a result the company has been able to win coupon rate increases in recent
re-negotiations.
Cloud computing could be a growth engine for the future
Cloud computing currently constitutes <1% of the revenues of Wipro. The management
reported that many customers are evaluating the cloud computing model and are most likely
to settle for a hybrid model involving both public and private cloud structures. Currently the
company is only doing a few consulting assignments, each worth
revenue stream to be a significant revenue generator over the next 3-5 years.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Wipro
We hosted Wipro’s Vice President of corporate treasury Mr. Rajendra Shreemal for an
interaction with investors at the DB Access India Conference. The salient points discussed in
these meetings were as follows:
Revenue growth momentum to return in-line with large cap peers in 2HCY11E
Following the recent dismantling of the Jt-CEO structure and the widespread changes in the
organisation structure and alignment, the management expects to return to revenue growth
in line with large cap peers in 2HCY11. While one of the key reasons for the speedy
turnaround in business momentum for the company can be the strong overall demand
environment for offshore IT service providers, another important aspect is that Wipro has
now a greater focus on key verticals. For instance the company has vertical heads in North
America which helps in faster decision making. Thus the company has done away with
country head structures in matured markets but has persisted with it in newer markets like
Germany, France and Asia-Pac, which are yet to achieve scale.
Growth across all key markets and geographies
The company is witnessing broadbased growth across all key verticals like BFSI ( banking,
financial services and insurance), healthcare and pharma an retail. Over the near term the
company expects healthcare and pharma (~11% of revenues) to be a key growth driver. Early
investment in geographies like Germany, France, Latam and Australia is also driving strong
revenue momentum. On pricing increase customers are moving to ‘discussion’ from
‘dismissing’. As a result the company has been able to win coupon rate increases in recent
re-negotiations.
Cloud computing could be a growth engine for the future
Cloud computing currently constitutes <1% of the revenues of Wipro. The management
reported that many customers are evaluating the cloud computing model and are most likely
to settle for a hybrid model involving both public and private cloud structures. Currently the
company is only doing a few consulting assignments, each worth
revenue stream to be a significant revenue generator over the next 3-5 years.
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