Wipro Limited (NYSE:WIT) Q1 2024 Earnings Call Transcript

You’re the CEO of the account you’re running. You’re representing Wipro for the account, and we must all align behind you in your account strategy. Frankly, this has triggered that this has fueled the growth over the last 3 years. I said a few minutes ago that the number of $100 million account has gone from 10 to 21 in the last 2.5 years. And I think it’s a reflection of that. We have now a lot more accounts of over $100 million. We have a lot more $50 million account, and we continue this strategy. In fact, we reduced the tail of accounts to have less accounts, but more impacting these accounts, we invest more. And as you said, we empowered the GAEs, the Account Executive to really drive and have the possibility to make decisions, invest and grow those relationships, but also make sure that we are positioned as a true partner in those accounts.

Finally, you – as part of this program, I mean, we’ve onboarded a lot of talent. We have today a significant diversity inside our organization, and in particular, in the account executive team as well, which is driving a lot of positive impact inside our organization every day beyond those accounts. The second point you had was the service lines. So the four service lines, the performance of the four service line, Jatin, you want to say something?

Jatin Dalal: Yes. So Dipesh, as you know, we – like most of our competitors, we no longer publish the actual financial performance of this four service lines. But suffice to say that, except for consulting where we have talked about the impact or a slower growth that we have seen, rest of the service line continue to perform very well and in line with the overall growth of the company.

Operator: Mr. Mehta? Does that answer your question? Thank you. We have our next question from the line of Mukul Garg from Motilal Oswal Financial Services. Please go ahead.

Mukul Garg: Hi, thanks. Thierry, I just wanted to clarify regarding the $1 billion investments, which you guys have announced in gen AI. Can you give some sense on where the majority of this investment will be routed to? Is it something which you guys will primarily invest into tools, which you will build out on using AI? Or is this something where a big portion will kind of end up supporting employees who are trained in that. And hence, the compensations will be higher than what you are currently kind of giving. Or is there something else where this investment will kind of be consumed given the quantum of the number? And second, Jatin, if you can just help us understand how to look at this investment, it will pass through your balance sheet through capitalization? Or will you be expensing this out in income statement? And if it is an income statement item, can this be an incremental expenditure on top of what you are currently doing?

Thierry Delaporte: So we have a very comprehensive plan, of course, behind the $1 billion Mukul. And it includes – it’s about investing into solutions, into assets, into accelerators, into capabilities, into methods, and it’s across the organization. It’s also about training. There’s a lot of aspects of these investments and of course, as well, M&A. Jatin?

Jatin Dalal: And Mukul, I think just as Thierry described various streams of investment. I think the accounting treatment will follow those streams for period cost, of course, that would be expensed, but large programs, which could have future benefits to organization over the years would be capitalized. And of course, M&A would be accounted as per the merger and acquisition accounting policy. So it would follow the overall approach. But it is not incremental dollar spend in and all the expense lines will remain what they are, as Thierry discussed or described earlier on this call, this would be funded through the gains of operations that we will make. So in that sense, it should not be seen or model as an incremental large P&L hit that you will take over the years…