Amid the fast-spreading Omicron variant of the COVID virus, the company remains ”very vigilant”, CEO and Managing Director Thierry Delaporte said, adding that as a proactive measure, the company has decided to close its offices globally for the next four weeks.
”It is of some relief to us that about 90 per cent of our employees globally are now vaccinated with one dose of the vaccine, and over 65 per cent are fully vaccinated with the recommended two doses.
“Our plans to return to the office, even in a hybrid model, for our fully vaccinated employees, will be calibrated in the context of the evolving situation, keeping both our employees’ safety and client preferences in mind,” Delaporte said during Wipro’s Q3 earnings calls. Wipro’s net profit came in almost flat at Rs 2,969 crore for Q3 FY22, as compared to the same period the previous year.
The company informed that it is on course to onboard over 70 per cent more fresh talent from the campus in FY22 against the previous year.
Wipro attrition climbed to 22.7% on a trailing twelve-month basis, up from 20.5% last quarter. Wipro had 2,37,671 employees for IT services at the end of quarter, a net increase of 10,306 employees during the quarter.
Salary increases had been rolled out to employees in September 2021, which the company said covered 80% of the employees.
”Attrition is a reality across almost all industries. It has been no different for us. I had shared with you last quarter that we expect attrition to slow down only after a few more quarters. However, we now feel more confident of having stabilised our attrition rates in Q3, and expect it to moderate next quarter,” Delaporte said.
Wipro is looking to hire 30,000 freshers in FY23, Saurabh Govil, President and CHRO of Wipro said, adding that the fresher hiring numbers were pegged at about 17,500 for FY22.
The company is working continuously to make sure that supply is not a constraint in managing the demand environment, he observed.
”…we are doing whatever it takes. We have had a second round of salary increases for 80 per cent of our employee base in this current quarter. We have done three rounds of promotions for 80 per cent of our employees in the last 12 months.
“So every four months, we have actually given them promotions…we could do it because we are growing fast…there are a plethora of things which we are working towards and the outcome of that you are seeing is that we feel more confident of much more moderated attrition in the coming quarter,” Govil said.
Wipro on Wednesday posted a consolidated net profit of Rs 2,969 crore for the December 2021 quarter and said it has logged strong performance in revenues and order bookings. The net profit attributable to shareholders in the year-ago period had stood at Rs 2,968 crore, according to a regulatory filing.
On a sequential basis, Wipro’s net profit was up 1.3 per cent. Revenue from operations grew 29.6 per cent to Rs 20,313.6 crore, from Rs 15,670 crore in the quarter ended December 2020. Sequentially, it rose 3.2 per cent from Rs 19,667.4 crore in September 2021 quarter.
Wipro, which gets a bulk of its top line (revenue) from IT services, said it expects revenues from that business to be in the range of USD 2,692 million to USD 2,745 million in the March 2022 quarter.
This translates into a sequential growth of 2 per cent to 4 per cent for the March quarter. ”We have guided for a revenue growth of 2 per cent to 4 per cent, which will translate into a full-year growth of 27 per cent to 28 per cent. The demand environment continues to be robust, and our growth path over the last few quarters, reflects this,” Delaporte said.
Wipro will stay on course with its strategic priorities, Delaporte said while exuding confidence about the company ”sustaining the growth momentum”.