BENGALURU: Wipro will embark on a robust hiring plan (with a YoY growth in recruitments), and offer skill-based bonuses and salary increments for senior employees after the IT services firm adopted a new operating model last quarter with a more linear structure.
Wipro's top leadership said during a press conference on Thursday that the skill-based bonuses will be released as soon as this week and will be essentially for domains like data analytics, cybersecurity and based on individual performances. The salary increments, promotion cycles are likely to be effective June 2021.
The company added a total of 14,826 employees during FY20-21, which included hiring 3,000 graduates during the last quarter.
The Bengaluru-based IT services provider reported the best fourth-quarter results in a decade, CEO Thierry Delaporte said, with the net profit growing by 27.7% YoY to Rs 2972 crore. The operating margin for Q4, FY21 saw an expansion by 344 basis points YoY at 21%.
Wipro Chief Financial Services Officer Jatin Dalal said that the company's investments in salary hikes, promotions and employee bonuses as well as acquisitions may lead to dilution of margins by 1-2% in the coming few quarters.
For the full financial year(FY21), the gross revenues saw a 3.4% YoY increase at Rs 16,245.4 crore whereas the net profit grew by 11% YoY to touch Rs 10,796 crore. Delaporte said that he expects the revenue growth for the coming quarter (April-June 2021) to be in the range of 2-4% YoY, which also translates into a double-digit revenue growth outlook for FY22 between 11-13%.
Wipro's peer Infosys said on Wednesday that it is looking at a revenue growth in the range of 12-14% for FY22 as the demand climate improves on the back of the vaccine rollout.
However, Wipro's two major acquisitions including over $1 billion takeover of consultancy firm Capco and $115 million purchase of Australian cybersecurity firm Ampion have not been included as far as the revenue guidance is considered. Delaporte said that the company will remain strongly focused on acquisitions in the coming quarters and will fund the latest buyouts with part debt and the rest from its healthy cash flow.
He added that the banking and financial services and insurance(BFSI) sector continues to remain a strong proposition for the software firm and has contributed to more than 30% of the annual revenues. This was followed by segments including consumer(17%), technology(13.4%), energy and natural gas (13%).
The total headcount at Wipro stood at 197,712 with an attrition rate of 12.1%.