This has been an unimaginable year. And despite all the pain andsuffering the unbreakable human spirit shines through - in the large and small acts ofkindness empathy and compassion.
In many ways humanity has come together to fight this global pandemic.Global cooperation has never been more important than it is now. The vaccines for COVID-19are one of the greatest examples of collaboration and pioneering science. We must now workto scale the supply chain build mechanisms for equitable distribution and drive anefficient administration for these life-saving vaccines.
Building a Bold Tomorrow
Many of us have lived through an economic crisis before. Without failthe world has adapted and bounced back. In the last fifteen months we have unlearnt oldhabits adopted technology rapidly and challenged ourselves to adapt to new ways ofworking. I am so glad and proud that Wipro has been a trusted partner for our customersright through this journey and together we have emerged stronger.
Technology is often at the forefront of economic recovery butespecially so now as the pandemic precipitated structural changes across industries andchallenged established ways of working. So whether it is digital commerce onlineeducation or telemedicine technology-enabled business models have emerged across theboard with Cloud technology as the cornerstone of this transformation.
As vaccination efforts ramp up globally and economies start seeing arebound our customers are ever so keen to invest in and accelerate their digitaltransformation. For companies such as ours the key to success is to respond to thisopportunity with speed and agility.
With the rapid shift to digital the demand for talent will outpacesupply and become a key dependency for growth. Already we see new delivery models suchas work from anywhere' and Crowdsourcing' become the mainstay. Weexpect virtual remote community- based and distributed work models to be the future ofwork.
Building a Bold Tomorrow for Wipro
I believe Wipro is well-positioned to leverage as well as enable suchtransformations. In the last six months we have effected bold changes to help serve ourcustomers better.
Early last year we set out to make the first bold change embracingthe direction set by our new CEO & Managing Director Thierry Delaporte. The Board andI cannot be more confident of Thierry and his leadership. As a result I feel moreoptimistic about our future than ever before.
The difficult but necessary changes we have made has made us astronger and better organization.
Proximity to customers is key as is reflected in our new businessmodel.
Deep and prioritized focus on countries industry sectors offeringsand partnership along with an operating structure that makes us agile and nimble in apost-crisis world that will be all about impact at speed. Overall I see a much strongerexternal market orientation at Wipro. Several new leaders have joined us to take forwardthis transformation.
The acquisition of CAPCO a leading strategy and consulting firm in theBanking and Financial Services Industry was our largest ever and another bold move forus. With a purchase consideration of $1.45 billion CAPCO brings to us over $700 millionin annual revenues and over 5000 consultant colleagues around the world. With thisacquisition we are now in a select league of service providers who provide integratedend-to-end consulting digital cloud and IT transformation services for the BFSI sectorat scale. It also expands our presence into a large set of strategic clients uniquelycomplementary to our existing customer base. Most importantly CAPCO and Wipro sharesimilar culture and values.
Building a Bold Tomorrow for our employees
As I write this letter India where over 160000 of our employees arebased is emerging out of a ravaging second wave of COVID-19. The last couple of monthshave been incredibly hard mentally and emotionally on us all. In this time of deepstress and grief we are doing everything we can to help our employees. These includeproviding COVID-19 Isolation Care centers for our staff and their families partneringwith major hospitals to provide medical support to critically ill employees additionalmedical reimbursement and leaves related to COVID-19 as well as vaccination at ourcampuses. We have also partnered with leading global EAP providers to help employees seekcounselling 24x7.
Earlier last year when the pandemic broke out we triggered ourbusiness continuity plans to quickly enable remote working. Even today less than 3% ofour global workforce work from our offices. We have settled well into this new way ofworking and have continued to make our customers successful. We enjoy their confidenceand I have no doubt that a hybrid model may well be how we work in the future. But for theinspirational inclusive and seamless teamwork this massive change wouldn't havebeen possible. We must take a moment to recognize and celebrate the tremendous commitmentand ownership our teams have demonstrated.
Building a Bold Tomorrow for our communities
While we have emerged stronger and bolder from the COVID-19 pandemicwe are acutely aware that the pandemic has widened socioeconomic inequities. Ourresponsibility towards our communities has increased manifold.
In April 2020 Wipro Ltd Wipro Enterprises Pvt. Ltd. and Azim PremjiFoundation together committed C1125 crore (~$150M) towards tackling the unprecedentedhealth and humanitarian crisis arising from the COVID-19 pandemic outbreak.
Over the past 12 months we have supported more than 1500 projectscovering humanitarian aid integrated healthcare support and livelihood regeneration.Cumulatively we have reached out directly to more than 18 million people through ourcoordinated and comprehensive COVID-19 response to provide humanitarian aid and help withlivelihoods regeneration.
To deal with the unprecedented second wave we have ramped up ourresponse on multiple fronts - our approach has been to address short-term emergencyresponse as well as contribute towards strengthening our public health infrastructure. Thehospital we had set up in Pune in the Indian state of Maharashtra by converting ourtech-campus into a 450-bed Covid-care hospital continues to save lives.
Our overall healthcare efforts have built capacity and run programsclosely collaborating with the public health system to serve geographies that have apopulation of over 150 million people.
The other major challenge facing humanity today is the climate crisis.Wipro has always believed that businesses must be at the forefront to address thischallenge. Wipro's climate change program goes back nearly two decades and this yearwe announced our commitment to achieving Net-Zero Greenhouse Gas (GHG) emissions by 2040in line with the objectives of the Paris agreement. Our approach emphasizes the importanceof not just reaching that goal but doing so in a way that aligns with Wipro's corevalues of integrity and business responsibility.
Our Performance & Return to Shareholders
Even as we focused on our employees' safety and customers'success we drove focused action on our costs to respond to a deceleration in revenues inthe first quarter of the year as the pandemic took hold globally. Just as effectively wequickly pivoted to meet the rising demand through an efficient supply chain in the secondhalf of the financial year. For the year ending 31st March 2021 our IT Services Revenueswas at $8.1 billion a decline of 1.4% YoY in reported currency. Our Net Income at D107.9billion grew by 11% YoY aided by improved operating margins. We also ended the year withstrong order booking including two mega billion-dollar deal wins. For the full year theEPS was at D 19.11 per share up 14.6% YoY and the Operating Cash Flows at D147.6 billionwas at 136.7% of our Net Income. Our Gross Cash was at $4.7 billion and Net Cash was at$3.6 billion. Our pay-out for FY21 was at D122.1 billion through buyback and dividends(including dividend distribution tax) to our shareholders which is 113.1% of our NetIncome. Our market cap and share price increased by over 108% in the last 12 months.
Our Values & Growth mindset
This year is special. We complete 75 years since incorporation! Thisfabulous journey would not have been possible but for the tireless efforts of ouremployees their dedication and inventiveness. They embody the true spirit of Wipro! As aresult Wipro is recognized the world over as an exemplar of corporate citizenship withthe highest standards of governance ethics and values.
I personally champion this culture mindset and ways of workingsomething we call the Five Habits: Being Respectful Being Responsive AlwaysCommunicating Demonstrating Stewardship and Building Trust. Embarking on and sparking acultural movement was a strategic imperative for us allowing Wipro to focus on driving agrowth mindset across the firm.
I am thankful to our clients partners employees and otherstakeholders who have placed their trust and confidence in us. I am very excited about thepath we are on and confident you will see a bolder and more ambitious Wipro as we moveforward that is unafraid to shake up the status quo make tough calls invest deep andthink big.
Rishad A Premji