Vipro's Missed Projections and Disappointed Stakeholders

Access Securities' recent report highlighted that Vipro failed to meet revenue, Epidomargence, and profit after tax projections for the July to September quarter. This disappointment extended beyond research firms, with Vipro's founder, Azim Premji, expressing discontent. The main question revolves around the reason behind these underwhelming results. The CEO, Delaport, who was appointed in 2020, proposed a growth strategy that included acquisitions and high-value deals. However, revenues primarily increased through acquisitions, requiring significant cash outflows. Delaport's aggressive clean-up of the organization and high salaries for new replacements also contributed to shrinking profit margins. In contrast to Vipro, its rivals secured several major deals. This downturn leaves Vipro's revenue forecast for each quarter of the calendar year expected to decline for the first time. Efforts to recover include restructuring functions and potential leadership changes.