New Delhi: In an interview with Mint, Girish Paranjpe one of the joint CEOs of the country’s third largest IT firm Wipro Ltd, who resigned early Friday morning along with the other CEO Suresh Vaswani, said that the model of having joint CEOs was adopted to deal with the global financial crisis.
Both of them took over in April 2008. “Now with things stabilizing, there was need for a simpler organization structure, and so we started at the top,” he said.
Girish Paranjpe. Bloomberg / File photo
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He denied that internal rivalries between the two CEOs or elevation of Wipro’s founder and chairman Azim Premji’s son Rishad Premji in the company (he was appointed chief strategy officer in September 2010) was the reason behind it. “The process has been a long drawn one,” he said.
Paranjpe added that the two had decided to leave several months ago and were in discussions with the board. “The board finally took a decision last week. It was consensual.”
However, Paranjpe ducked the question on whether Premji had suggested anyway in which both of them could have stayed in different roles considering that both have been with the company for over 20 years. Paranjpe is undecided on his future course of action. “Being a CEO is a full time job, beginning today I will put my mind to what’s next,” he said.
Meanwhile, T. K. Kurien has been elevated as the chief executive officer of the Information Technology business of the company and also as executive director.
“Over the last 10-years, Kurien has been instrumental in building and scaling many of our businesses successfully. His track record with customers, passion for excellence coupled with strategic thinking and rigor in execution makes him uniquely positioned to lead Wipro’s IT business through the next phase of growth,” Azim Premji said in a statement.
Wipro Ltd consolidated numbers, which also include its other businesses like consumer care, show an increase in net profit to Rs1,319 crore, up 3.36%, and a revenue increase to Rs7,829, an increase of 1.26 % sequentially. Operating margins remained flat at 22.2 %.
Consensus numbers for revenue were around the Rs8,000 crore mark. Dollar denominated global IT revenues rose 5.6% to $1.34 billion (Q-o-Q).
“The operating margins for IT services business was flat, despite lower working days and drop in utilization,” Suresh Senapaty, executive director & chief financial officer said.
For the fourth quarter of FY11, Wipro expects IT services revenues to go up by 3-5% to $1.38-1.41 billion (Q-o-Q).
IT products constituted 11% of total revenue and IT services constituted 76% of total revenue in the third quarter.
The company’s stock is trading at Rs460. 05 down 3.76% while the benchmark Sensex is down 76 points and is at 18,969 points.