Wipro shares rose 116% under Thierry Delaporte's tenure. All eyes now on insider CEO
Delaporte had joined Wipro on July 6, 2020, when the market capitalisation was around Rs 117,500 crore. It ended at Rs 2.53 lakh crore at the end of Friday's session. After the rejig at the top management, the stock fell up to 1% at Rs 478.40 on BSE on Monday.
With its market capitalisation surging by around Rs 1.36 lakh crore in the last 4 years, shares of have gone up 116% during Frenchman 's tenure as the CEO and MD. With effect from April 6, , CEO of the Americas 1 business unit of Wipro, has taken over the hot seat.Delaporte had joined Wipro on July 6, 2020, when the market capitalisation was around Rs 117,500 crore. It ended at Rs 2.53 lakh crore at the end of Friday's session. After the rejig at the top management, the stock fell up to 1% at Rs 478.40 on BSE on Monday.
"The resignation of CEO is an acknowledgement of the failure to turn around the business. We do not expect a major strategy shift, noting that the CEO is an internal candidate. Thierry made a serious push to turn around Wipro; however, execution challenges impacted the journey. The new CEO will have to manage the same set of challenges," Kotak Equities' Kawaljeet Saluja said.
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Wipo has seen steady churn at the top level (8 CEOs) since the turn of the century, the highest among India-based IT services firms. These include Vivek Paul, Azim Premji, Girish Paranjpe and Suresh Vaswani (joint CEOs), TK Kurien, Abidali Neemuchwala, Thierry Delaporte, and now Srinivas Pallia.
Pallia joined Wipro in 1992 and has held many leadership positions, including President of Wipro’s Consumer Business Unit and Global Head of Business Application Services. Most recently, he served as the CEO for Americas 1.
Delaporte had experimented with multiple things, including large-scale consulting M&A (Capco and Rizing), simplifying the organizational structure by replacing various strategic business units, service lines and geographies with four strategic market units (SMUs) and two global business lines, focusing on large deals by creating a centralized team and hiring local senior level talent.
Nomura analysts note that two key C-level roles (CEO and CFO) both have been replaced with internal candidates to signal confidence in the depth of senior leadership talent available at Wipro and to address the significant churn seen over the past two years. Aparna Iyer was appointed as the CFO in Nov 2023 and now, Srini has been appointed as the CEO in April 2024.
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Source: Stocks-Markets-Economic Times
