Wipro Limited · NSE:WIPRO
Wipro — Q4 FY2008-09 Earnings Presentation
24 slides from Wipro's earnings presentation, April 2009
Slide 1: Wipro Limited Presentation to Investors
Wipro Limited Presentation to Investors Jan-Mar 2009 © 2008 Wipro Ltd - Confidential 1
Slide 2: Safe Harbor
Safe Harbor This presentation may contain certain “forward looking” statements, which involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These uncertainties have been de
Slide 3: Overview of Wipro Corporation Performance
Overview of Wipro Corporation Performance 1. Incorporated in 1945 – Businesses include • IT Business; • Consumer Care & Lighting; and • Infrastructure Engineering 2. Revenue for the corporation at $5.7 billion for 2008-09 3. Total Employees ~100,000 •Wipro Corporation revenue at Rs.255 billion for 2
Slide 4: Robust Business Model
Robust Business Model Challenging Global Environment Wipro Resilience 4
Slide 5: Offshore Still Small Part of Overall Spend
Market Opportunity Offshore Still Small Part of Overall Spend 1. Despite the growth Global Technology Related Spend & India’s India has seen in Current Exports ($ Bn) Global IT Services market, it is still a very small Indian Exports As % of Global Spend proportion (~2%) of global spend ~5% ~2% ~1%
Slide 6: India Story becoming Stronger
Market Opportunity India Story becoming Stronger India’s offshore IT and BPO exports, US $ Bn. 120-180 1. Industry f AG Ro continues strong C 29 % momentum – grew 17% in ~60 FY09 47.3 2. IT-BPO exports 40.3 25.0 could reach a 31.4 12.8 size of $120- 23.6 10.9 180 Bn by 2015 ; 8.4 28% 17.7 6.3 CAGR o
Slide 7: How do we capitalize on the opportunity?
How do we capitalize on the opportunity? …Through our differentiators - Current and Prospective 7
Slide 8: Investing Early for Strong Future
Wipro Strategy: 1. Incubation Investing Early for Strong Future Verticals Service Lines 57% • Investments in Vertical structure as early as 1999 • Verticalization resulting in deep rooted domain competence • Deep domain competence facilitates engagements with cost / service transformation – need of
Slide 9: Re-defining the Global Delivery Model
Wipro Strategy: 2. Globalization Re-defining the Global Delivery Model Approach to Optimize Delivery Locations • Design ideal mix of onshore, offshore and best shore based on client’s business needs and value hierarchy • Provide integrated applications, BPO and ITO Service Delivery from Global Servi
Slide 10: Innovative Delivery Methodology
Wipro Strategy: 3. Adaptation Innovative Delivery Methodology • Understanding customer and his needs better • Moving from doing what is contracted to being a partner in solution success • Internal partnerships to create value for the customer • Relationship building, Excellence in governance Custome
Slide 11: Performance And Capital Efficiency – PACE
Wipro Strategy: 3. Adaptation Performance And Capital Efficiency – “PACE” A set of service offerings from Wipro to address key requirements of companies in this downturn – Capex and Opex reduction 1. These offerings are focused on four areas - IT Savings, IT Transformation, IT Rationalization, and P
Slide 12: Addressing Shifts in Business Environment: Consulting
Wipro Strategy: 4. Game Changers Addressing Shifts in Business Environment Consulting GEO GO-TO-MARKET 1. Consulting aligned to accelerate growth CONSULTING SERVICES 2. Dedicated MEGA / GAMA account alignment Upstream Business Transformation 3. Single services channel for Verticals/ Accounts/ Analys
Slide 13: Addressing Shifts in Business Environment: Acquisitions
Wipro Strategy: 4. Game Changers Addressing Shifts in Business Environment Acquisition Strategy 1. Infocrossing - Transformational deal for Wipro: 1. Enhancing domain and technology Infocrossing’s Pan-US Local Hosting Capabilities with a competence Managed Services Layer providing a significant comp
Slide 14: Customer Focused Strategy
Wipro Strategy: 5. Account Focus Customer Focused Strategy Customer Size Distribution* 1. Strong account mining strategy in place - $1 Million + accounts increased to 427 from 295 over 8 quarters (growth of 45%) 2. Focus across Service-Lines & Verticals to drive growth from MEGA & GAMA accounts 3. R
Slide 15: R&D Leadership
Wipro Differentiators R&D Leadership Leadership in R&D business Revenue of $867 million for 2008-09 18000+ talent pool engaged in R&D Services Largest player based on headcount World’s largest independent team of Hardware Design Engineers of 1,900 Leaders in Telecom OEM Addressing new se
Slide 16: India & Middle East
Wipro Differentiators India & Middle East 1. Revenue of Rs. 47 billion ($1.1 billion*) ; Yoy revenue growth of 34% and EBIT growth of 35% 2. Leadership position in India, pioneer in Middle East 3. Best of breed partnerships 4. Transformational customer engagements – Some of the largest deals won by
Slide 17: Global TOS TIS – A Complete Portfolio of Services
Wipro Differentiators Global TOS TIS – A Complete Portfolio of Services Consulting Technical Enterprise Managed Main- & Managed Managed Support Service Security frame Sys Services Hosting Services Mgmt Services Services Integration • Transformational Outsourcing IFOX Changing the IT landscape of o
Slide 18: IT Services
Performance Highlights IT Services Our Combined IT Products and Services business at $4.9 billion in 2008-09 Partner to industry leaders Global footprint 863 active global clients Listed on NYSE as on 31 March 2009 54 countries 191 Global 500/Fortune 1000 cos. ~13,000 employees Onsite acro
Slide 19: IT Services – Highlights for the Quarter & Year ended March 31, 2009
IT Services – Highlights for the Quarter & Year ended March 31, 2009 • IT Services Revenue for the quarter in constant currency was $1,058 million, beating the guidance of $1,045 million • IT Services Revenue in dollar terms for the year was $4.3 billion, a YoY growth of 18.5% (22.3% in constant cur
Slide 20: Strength of De-Risked Business Model
IT Services Business Strength of De-Risked Business Model Revenue contribution of Top customers Vertical distribution for FY 2008-09 for FY 2008-09 Customer Concentration (% of revenue) Top customer 2.5% Top 5 11.2% Top 10 19.8% • No customer contributing more than 3% • 427 customers with $1 million
Slide 21: Non IT business
Performance Highlights Non IT business Wipro Consumer Care and Lighting (WCCL) • For the quarter, Wipro Consumer Care and Lighting (including Unza) recorded Revenues of Rs.5,164Mn, a growth of 7% YoY and PBIT of Rs. 683 million, a growth of 8% YoY • SANTOOR, our flagship brand has No.1 position in R
Slide 22: Strength of our Balance Sheet
Performance Highlights Strength of our Balance Sheet Operating Cash Flow generation of Rs.36 billion ($710 million) for the year 2008-09 DSO at 60 days as on March 31, 2009 as against 67 days in the same period previous year Total Cash at Rs. 70 billion ($1.4 billion)in the Balance Sheet as of
Slide 23: Looking Ahead
Looking Ahead The value proposition of the Outsourcing in general and Offshoring in particular has only strengthened Our deal wins have been strong, and we have generated a robust deal pipeline Looking ahead, for the quarter ending June 30, 2009, we expect the Revenue from our IT Services to b
Slide 24: Thank You for your time
Thank You for your time © 2008 Wipro Ltd - Confidential