Wipro crosses annualised revenue run rate of $10 billion
Wipro has hit an annualised revenue run rate of $10 billion, said Thierry Delaporte, CEO and Managing Director of the fourth-largest IT services company in India.
"This revenue milestone assumes greater significance because we achieved this while undergoing our largest-ever internal transformation," Delaporte told reporters on Wednesday, while announcing Wipro's results for the second quarter of fiscal year (FY) 2022.
The Bengaluru-headquartered company is in a close battle with HCL Technologies, which breached the $10-billion mark in FY 2021.
In the second quarter of FY 2022, Wipro clocked $2.58 billion in revenue, growing 6.8 percent sequentially. In constant currency terms, it grew 8.1 percent, higher than the top end of its guidance range of 7 percent.
While Wipro's gross utilisation rate was at 78.1 percent for the second quarter, it reported a high attrition rate of 20.5 percent, and an operating margin of 17.8 percent. The operating margin was lower than in the first quarter of FY 2022, and a year ago.
Delaporte said the operating margin for the financial quarter fully absorbed the integration of its recent acquisitions—Capco in March 2021 and Ampion in April 2021—and Wipro's investments in internal capabilities and talent.
"We offered salary increase covering 80 percent of our colleagues in September 2021, marking our second salary hike in this calendar year," Delaporte noted.
On the demand side, he said there is significant traction in America and Europe. Wipro's pipeline is a mix of "large, many medium-sized deals, and slightly smaller-sized transformation deals in the market," he added.
Its customer count moved from 13 to 15 in the '$100-million account' category, from 27 to 28 in the '$75 million account' category, and from 42 to 44 in the '$50 million account' category in the second quarter of FY 2022.
Wipro's cloud pipeline has crossed $8 billion, Delaporte said, adding that its total deals-pipeline is worth $27 billion. "We are tracking the cloud pipeline closely because we have been growing over 20 percent in the cloud space for a few quarters now," he told EnterpriseStory.
There is scope for more cloud-transformation deals for most of its clients across industries, he added. "Studies say that more than 20 percent of the cloud-transformation journey has been completed so far. So, there is still much ahead of us. We see a nice increase of those cloud opportunities in our largest accounts across industries."
Wipro is going to market with two global business lines. The first is iDEAS that includes Wipro's industry domains, consulting, applications and data, engineering, R&D, and Wipro Digital. Its second business line is iCORE that includes integrated cloud infrastructure, digital operations, risk and enterprise cybersecurity services.
The company finished the second quarter with 221,365 employees.