Wipro Limited (NYSE:WIT) Q3 2023 Earnings Call Transcript

So we can give you comfort that as we enter every quarter, we are entering with a superior backlog than what we are carrying in the previous quarter and the uncertainty around discretionary spend or the conversion of large steel continues to pay out in the immediate quarter. So you are not seeing this correlation in an immediate 3-quarter period that of ’22, ’23 that you have seen the results of — but as we model it for future, we feel very comfortable that we are moving in the right direction of securing a better book to carry as we enter.

Surendra Goyal: Jatin, the ACV that you were disclosing in Q2, Q3 and Q4 of last year was all in excess of 24% also? So this question was lowered around — like I’m sure would have been gone, then should have converted by now. So just wanted to understand it better if you want to kind of take it offline that.

Jatin Dalal: Yes. And we take your can point, Surendra, we can — even in next quarterly commentary, we can cover this point specifically, but we feel comfortable that the bookings in the current environment is the only way to continue to grow because uncertainty will always mean that in our business, there is always — there is certain amount of projects coming to NN and only way to continue to grow is to add more on the top. So we feel comfortable, but we can cover it as we go forward.

Surendra Goyal: And just 1 clarification. On your comments on the margin work. you mentioned like something in the employee cost, which kind of moved away from the cost of employee — per employee cost for IT services. Could you just kind of elaborate on that? And could you also quantify it for us?

Thierry Delaporte: Yes. So Surendra is quite straightforward, when you see our employee cost numbers, you see it on a consolidated basis for entire Wipro Limited. As you know that we had a restructuring cost, which was sitting in the company book. So it was sitting in quarter 2 employee cost. But when we publish our segment results and IT services, it was sitting in not in IT Services segment, it was sitting elsewhere. And clearly, that restructuring cost has not recurred in quarter 3, and that has reduced from quarter 2 to quarter 3, that much cost in the employee cost line when you look at consolidated Wipro Limited books.

Surendra Goyal: Could you quantify that, Jatin, that’s for a convenience.

Jatin Dalal: Yes, I can quantify it, but you can also see it in last quarter’s numbers or or Abhishek will give you shortly. It’s about INR 130 crores, sir.

Operator: Our next question is from the line of Manik Taneja from Axis Capital.

Manik Taneja: I actually just wanted to get your sense around the margin improvement trajectory given the fact that over the course of last 18, 24 months apart from acquisitions you’ve invested in terms of , when it came to freshers. And now is getting much more moderated —