Wipro’s Q4 performance on global IT business side quite good: CFO

If you look at the Indian rupee, the way it has fallen against other currencies, it would seem beneficial for an export-oriented sector like IT but we saw a larger impact this quarter because of cross currency. Will this continue in the next quarter as well? What is the outlook as far as margins are concerned? Do you see any benefit from the rupee fall at all coming forward?
While we did have an impact on our dollar realisation which is reported versus constant currency growth of 1.4% adverse but on margins, we had a benefit of about 0.4% because of the weaker rupee compared to the dollar. I told in my opening comments that our realisation was 73.95 versus 72.09 in quarter two compared to quarter three. So we did have a benefit coming from forex.

What impacted our margins in the current quarter is largely some of our operations in business process services side in a couple of our acquisitions in Europe where revenue literally froze in March because of COVID and related demand issues but we were not able to take the cost actions fast enough and these businesses actually impacted margins adversely for the quarter.


If you see our global IT business and we share this in a data sheet, our performance has been quite good. Given the quarter, our utilisations have improved by upwards of 3% and we have improved our offshore ratio in the quarter by about 1.4%. So overall execution was quite good on the IT business side where we could control outcomes better. Two or three areas where we had to wait, we will have to take action as we go and we could not complete those actions within the quarter four.