Wipro said it onboarded 3,000 people from campuses in Q4, and will be hiring much more this fiscal year.

Wipro office side viewPixcy
Atom Business Friday, April 16, 2021 - 08:56

IT services company Wipro’s net profit for the fourth quarter of FY21 jumped 27.8% year-on-year to reach Rs 2,972 crore, the company announced on Thursday. In the same time period, the IT services segment revenue beat analyst estimates and went up by 3.9% sequentially and 3.8% year-on-year. CEO Thierry Delaporte said the company reported its best earnings in a decade. For the full financial year, gross revenues saw a 3.4% YoY increase at Rs 16,245.4 crore, whereas the net profit grew by 11% YoY to touch Rs 10,796 crore. The annual revenue of Wipro for 2020-21 increased by 1.5% to Rs 61,943 crore from Rs 61,023.2 crore in 2019-20. 

Growth for the company was led by the Banking, Financial Services and Insurance (BFSI sector), and contributed to over 30% of the company’s annual revenue. Attrition came in at 12.1%, and in voluntary attrition in IT services excluding Digital Operations and Platforms came in at 14.7%. Wipro’s Chief HR officer Saurabh Govil said attrition will mostly see an uptick in Q1 of FY22 as well. The company’s headcount is currently at 1,97,712, adding a net 7,404 employees last quarter and net 14,826 employees in FY21.

In terms of hiring, the company said it will be much more robust in FY22 than it was in FY21, on the back of rising number of deals. It said it onboarded 3,000 people from campus in Q4, and will be much more in 2021. Saurabh said that the company hired 18,000 people during the quarter. 

For existing employees, the company said it has promised skill-based bonuses to employees, especially in in demand areas such as cybersecurity and AI in order to retain talent. 

“There is more demand for people with the right skills. We have also seen an uptick in attrition. We are taking enough action. If you take 3 months back, 80% of our employees got a salary hike which was differentiated, extremely aggressive salary hikes which we have given. In the last three quarters of the last fiscal, we paid 100% variable pay to all our employees. Our junior employees we did a promotion in December, and there will be one for all employees in six months,” Saurabh Govil said.  

He said that skill-based bonuses are currently being rolled out, and pay hikes will be coming up for senior employees as well. 

“We continue to hire laterally across the globe. We will continue to make investments in domain as well as in specific skill sets. It is a very robust hiring across the global for people with experience as well as freshers,” he added. 

Wipro closed 12 large deals, resulting in a total contract value of $1.4 billion in the quarter.

Early in March, it said it had signed an agreement to acquire London-headquartered Capco, a global management and technology consultancy, in a $1.45 billion deal.

CEP Thierry Delaporte said, “We delivered a third consistent quarter of strong revenue growth, deal wins and operating margins. We also announced our largest ever acquisition of Capco that will bolster our global financial services sector. We are excited with this wave of business momentum that we are witnessing. All key markets are now growing on YoY basis and this provides us a solid foundation to build on next year growth rates,” he said. 

For its outlook for Q1 of FY22, Wipro said it expects to see a sequential growth of 2-4% excluding the revenue from the acquisitions of Capco as well as Australian IT services provider Ampian. This, the CEO said, translates to a yearly growth of 11-13%. 

In terms of the company’s operating margin, Wipro reported 20.3% for the whole year and 21% last quarter. CFO Jatin Dalal said that the margins are only likely to be diluted by 1-2% as they said earlier, and said the company continues to maintain that stance where it said that margins are likely to be around 19%.

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