Wipro is taking a cautious stand on growth in contrast to Tata Consultancy Services' (TCS) view that the worst is over. Wipro’s CEO Theirry Delaporte said it is hard to assess how the pandemic will unfold despite the strong order book.
During its Q1 FY21 earnings announcement, the TCS management said the worst is over for them. Rajesh Gopinathan, CEO, TCS, said the company expects growth in Q3 to be similar to be similar to Q3 FY20 levels.
The confidence, Gopinathan said, is on the back of a strong deal pipeline and investments in digital across sectors.
However, the Wipro management did not offer any revenue guidance for the second straight quarter due to uncertainty around the pandemic. Speaking to mediapersons, Delaporte said, “I am going to be a little bit cautious. It is probably difficult to really assess how this pandemic will evolve in the next quarters. Will the shape of growth be a 'W' or something else is the question.”
“For sure we want to return back to normal times and provide guidance and we will do it. But when the time is right for that,” he added.
The company registered a 7.3 percent fall in revenue to the tune of $1,092 million. Growth across verticals, barring healthcare, declined in revenue terms due to pandemic. Jatin Dalal, its CFO, said the company is seeing momentum in consumer business units.
Talking about the overall growth strategy for the company, Delaporte said, “I want to build on strengths and focus specifically in order to come up with a competitive advantage.”
He added he would accelerate the business portfolio change that focused on digital, which has been happening over the past year. “I am convinced that pandemic, if anything, is only going to make technology even more critical and important for companies. That is where we will focus their attention as well,” he added.
"Another focus area would be the way the company serves its top clients, how can Wipro develop those relationships and how to invest more into services and solution that matter the most to them? How to leverage the growing relationship we have with technology firms such as Microsoft, Google? How can we make them more relevant to them including on skills we are ready to be a little bold and really be ambitious?"
“We will work on how to build and go one step further. I really want to work on the most complex projects of the most demanding clients and deliver projects and services,” Delaporte said.
“I am not coming with preconceived ideas. We are in the work of change and change is good. So will drive this agenda,” he added.