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• Management’s immediate priority is to accelerate growth and therefore it has identified 5 areas to achieve it. Firstly, to accelerate large deal momentum by working closely with clients and partners. Secondly, to strengthen relationships with large clients and partners and further identify accounts which has the potential to become large accounts. Thirdly, to focus on industry specific offerings and business solutions led by consulting and infused by AI. Fourthly, to build talented skill which is AI-ready and able to deliver industry specific business solutions. And lastly, to continue to simplify the operating model and focus on execution rigour with speed. Management is confident to build and adapt to these five strategies and accommodate technological shifts and market conditions.
• The demand environment remains cautious and hence, short term challenges exist. Clients are still making conservative investments focusing on returns and better optimization. Management observes green shoots in Consultancy business and hence, Capco is expected to bounce back with strong growth at the time of revival in demand. The strategy of pivoting towards higher value business will reflect in the margins, however, pricing remains stable as of now. Management anticipates a softer Q1FY25, with revenue expected to be in the range -1.5% to +0.5% cc and margins to be range bound. Management identifies margin improvement levers as rotation, off-shoring, lowered SG&A expenses etc. and aspires margin to be in 17% range over long term
• Wipro secured 18 deals exceeding $30mn TCV range during the quarter, compared to 14 such deals in Q3FY24. America 1 geography secured 8 large deals in Q4, adding up to a TCV of $587mn for the full year. Americas 2 market unit grew 1.9% QoQ on the back of strong performance in Capco, BFSI and hi-tech sectors. Company sees strong traction on the order bookings side in Europe. The company possesses a robust pipeline for the future, with expectations of a rebound in the Manufacturing and Energy sectors, as well as Utilities, anticipated in H2FY25. Management will actively look for M&A opportunities going ahead too. AI has become vital for both i.e. organization and clients. Clients want to use AI models to drive tangible results whereas it is already embedded in company’s existing solutions and offerings.

Valuation: Wipro has made substantial investments to strengthen its capabilities across the organisation. The investments in AI360 ecosystem, combined with the strategic value the consulting business brings to clients will help Wipro to stay competitive, resilient and a preferred partner for its clients. We maintain our rating to BUY with a revised target price of INR500, implying a 19.5x PE on FY26E EPS of INR25.6.

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