MAM
EEMA requests govt to cover cost of salaries, refund taxes for cos impacted by COVID-19
MUMBAI: Around 52.91 per cent of event and entertainment companies saw 90 per cent of their business being cancelled between March-July 2020, reveals a new member survey, conducted with 170 companies by the Events and Entertainment Management Association (EEMA). The report highlights the loss of business, the revenue impacted, employers affected and the funds required in the long run to attain stability during COVID-19. The findings of this report have been shared with “The Government of India” and “Ernst & Young” team
Recently EEMA had filed a petition appealing to the government of India to intervene with measures to support the lives of the 60 million Indians the event industry employs – directly and indirectly.
The report also highlighted that around 107 companies have suffered from a revenue loss of up to Rs 1 crore and around seven companies envisage a 50-80 per cent retrenchment of their current workforce and 35 between 25 per cent and 50 per cent. The ideal working capital/loan expected to keep afloat for the next six months is around Rs 2-5 crore for 39 companies and Rs 1-2 crore for 118 companies. Around 97 companies will need to raise capital or debt from institutions or shareholders, VC funding etc.
EEMA has also requested the Government of India to consider releasing, with immediately effect, all tax refunds that are due including income tax and TDS for the industry, cover the cost of salaries/ daily wages, etc., for those infected by COVID 19 and unable to return to work, collateral-free line of credit to be used for employee’s salaries and statutory dues, and a moratorium of payback on loans, interest for a period of 9-12 months
Further, it has suggested industry-wide reconstruction measures, including paying all dues to companies who have executed work orders for the government of India, public sector and for state governments, zero or minimal-interest loans to be made available by the department of MSME for the fiscal year 2020, government-initiated projects should replace the need of bank guarantees with corporate guarantees, loans to be provided for loss-making companies against future contractual work, instruct insurance companies to insure future events and activities against COVID-19 or similar medical/ biological disasters in addition to existing natural disasters, covering the cost of salaries/ daily wages of employees laid off for a period of 90 days minimum, and reduction of GST on entertainment and cultural events to 12 per cent and the arts and entertainment segment may be covered
The event and entertainment industry is going through challenging times since the outbreak of the coronavirus. The economic disruption has led businesses across various sectors to see a huge downfall in their growth. The worst affected are the event industry who are witnessing a major dip in their business due to the cancellation of events worldwide. Due to which, there has been a significant spike in the number of webinars, online discussions and live chats to keep the industry active. However, the daily wage workers and the small and medium scale agencies associated with the trade are facing the brunt and need immediate support, both from the events community and the government.
The 170 member survey represents over a 1,00,000 of companies that were affected by this pandemic and EEMA urges the government to consider some steps like the immediate payout of all income tax refunds, which have been due for a while, and the due payment from the central and state governments to event companies for work done or work-in-progress.
EEMA president Sanjoy K Roy said, “The COVID-19 pandemic will impact the entire business community, and our team is focused on ensuring the health and safety of our employees. Industries have already faced an interlocking set of financial challenges for which we filed a petition to the government of India. The sectors are getting into a financial crisis which might soon result in increasing unemployment ratios. We hope that the Government takes the required decision which can help the country to survive with the results of the pandemic.”
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
