Business Wire IndiaWipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended December 31, 2021.
Highlights of the Results
Results for the Quarter ended December 31, 2021:
Gross Revenue was Rs 203.1 billion ($2.7 billion1), an increase of 3.3% QoQ and 29.6% YoY
IT Services Segment Revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY
Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY
IT Services Operating Margin3 for the quarter was at 17.6%, a decrease of 19 bps QoQ
Net Income for the quarter was Rs 29.7 billion ($399.1 million1), increase of 1.3% QoQ
Earnings Per Share for the quarter was at Rs 5.43 ($0.071), an increase of 4.2% YoY
Operating Cash Flow was at Rs 30.1 billion ($404.2 million1), which is 101.3% of Net Income
Our closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis YoY. We added 10,306 employees during the quarter
Wipro declared an interim dividend of Rs 1 ($0.0131) per equity share/ADS
Performance for the quarter ended December 31, 2021
Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly.”
Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of Rs 1 per equity share.”
Outlook for the quarter ending March 31, 2022
We expect Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million*. This translates to a sequential growth of 2.0% to 4.0%.
*Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
A US-based healthcare company has awarded Wipro a business process and platform services contract spanning claims processing and setting up a customer service center using Wipro’s proprietary healthcare platform. Wipro will enable the client to expand its product offerings and go-to-market strategies and grow in this business segment.
A leading US-based student-aid organization has awarded Wipro a multi-million dollar engagement to manage and streamline their mainframe operations to support their mission critical platform and help enhance end-user experience.
Wipro has won a multi-million dollar engagement with a US-based industrial manufacturing company to drive workplace transformation that delivers best-in-class end-user experience with an effective approach for mergers and acquisitions integrations.
Wipro has won an engagement with a leading US-based retail brokerage for a large integration program that includes modernizing and scaling applications across its multiple lines of business.
A technology-driven travel marketplace has selected Wipro as its strategic partner to modernize its core travel platform and help set up a capability hub in Mexico. The modernized platform will significantly enhance customer experience and help generate new revenue streams for the customer.
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
A large, Brazil-based water and waste management company has awarded Wipro a strategic engagement to transform their internal processes, improve operational efficiency, and enhance competitiveness leveraging Wipro FullStride Cloud Services.
A leading US-based Cloud Security and Identity Governance solutions provider has selected Wipro to develop demanding functionalities and enhancements to support their core Product Development function. Wipro will help the customer meet growing demands, enable a quicker time to market and scale their software business globally.
A leading US-based financial advice firm has selected Wipro and Capco as strategic partners to deliver multiple digital transformation programs. Together with Capco, Wipro will lead an innovation program to facilitate greater adoption of new technologies to accelerate the company’s digital transformation journey.
Wipro has won an engagement with a US-based multi-state healthcare organization to deliver modernized member services. Wipro will leverage a new cloud-based, globalized contact center service delivery model to digitally transform and optimize stakeholder experience and ensure cost savings, quality, compliance and growth for the customer.
Analyst Recognition
Wipro has been recognized as a Leader for the second consecutive time in the 2021 Gartner® Magic Quadrant™ for Managed Network Services (Ted Corbett et al., 10 Nov 2021)
Wipro positioned as a Leader in The Forrester Wave™: Data Management Service Providers, Q4 2021
Wipro was featured in the Top 3 players in HFS Top 10: Life Sciences Service Providers 2021
Wipro was featured in the Top 4 players in HFS Top 10: Energy Services 2021
Wipro was rated as a Leader in Avasant High-Tech Industry Digital Services 2021–2022 RadarView
Wipro was positioned as a Leader in IDC MarketScape: Worldwide Salesforce Implementation Services 2021 Vendor Assessment (Doc # US47073921, Nov 2021)
Wipro was rated as a Leader and Star Performer in Everest Group’s Enterprise Quality Assurance (QA) Services PEAK Matrix® Assessment 2022
Wipro was recognized as a Leader in Everest Group’s Cloud Services PEAK Matrix® Assessment 2022 – Europe, North America
Wipro was recognized as a Leader in Everest Group’s Advanced Analytics and Insights (AA&I) Services PEAK Matrix® Assessment 2022
Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane & Navisco Germany IT Outsourcing Study 2021
Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane French IT Outsourcing Study 2021
Wipro was recognized as a Leader in Everest Group’s Intelligent Automation in Healthcare – Solutions PEAK Matrix® Assessment 2022
Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
IT Products
IT Products Segment Revenue for the quarter was Rs 1.8 billion ($23.8 million1)
IT Products Segment Results for the quarter was a profit of Rs 0.1 billion ($1.3 million1)
India business from State Run Enterprises (ISRE)
India SRE Segment Revenue for the quarter was Rs 1.6 billion ($21.8 million1)
India SRE Segment Results for the quarter was a profit of Rs 0.1 billion ($1.8 million1)
Please refer to the table at the end for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.
About Non-GAAP Financial Measures
This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that are adjusted to exclude or include amounts that are excluded or included, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.
The table at the end provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial measure that is calculated by translating IT Services Revenue from the current reporting period into U.S. dollars based on the currency conversion rate in effect for the prior reporting period. We refer to growth rates in constant currency so that business results may be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.
This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS and may be different from non-GAAP measures used by other companies. In addition to this non-GAAP measure, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.
Results for the quarter ended December 31, 2021, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com
Quarterly Conference Call
We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (08:45 a.m. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a web-cast and can be accessed at the following link- https://links.ccwebcast.com/?EventId=WIP20220112
An audio recording of the management discussions and the question-and-answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com
About Wipro Limited
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 220,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.
Forward-Looking Statements
The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, complete proposed corporate actions, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our business and industry.
Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.
For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 = Rs 74.39, as published by the Federal Reserve Board of Governors on December 31, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2021 was US$1= Rs 76.12
Constant currency revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period
IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Rs in millions, except share and per share data, unless otherwise stated)
As at March 31, 2021
As at December 31, 2021
Convenience translation into US dollar in millions
Refer footnote 1
ASSETS
Goodwill
139,127
242,945
3,266
Intangible assets
13,085
44,320
596
Property, plant and equipment
85,192
90,248
1,213
Right-of-Use assets
16,420
18,445
248
Financial assets
Derivative assets
16
35
^
Investments
10,576
17,543
236
Trade receivables
4,358
1,301
17
Other financial assets
6,088
6,052
81
Investments accounted for using the equity method
1,464
775
10
Deferred tax assets
1,664
2,357
32
Non-current tax assets
14,323
10,222
137
Other non-current assets
15,935
12,377
166
Total non-current assets
308,248
446,620
6,002
Inventories
1,064
1,025
14
Financial assets
Derivative assets
4,064
5,277
71
Investments
175,707
235,740
3,169
Cash and cash equivalents
169,793
107,458
1,445
Trade receivables
94,298
122,365
1,645
Unbilled receivables
27,124
38,908
523
Other financial assets
7,245
9,608
129
Contract assets
16,507
16,680
224
Current tax assets
2,461
4,185
56
Other current assets
24,923
29,504
397
Total current assets
523,186
570,750
7,673
TOTAL ASSETS
831,434
1,017,370
13,675
EQUITY
Share capital
10,958
10,962
147
Share premium
714
1,304
18
Retained earnings
466,692
555,789
7,471
Share-based payment reserve
3,071
4,094
55
SEZ Re-investment reserve
41,154
44,167
594
Other components of equity
30,506
37,609
506
Equity attributable to the equity holders of the Company
553,095
653,925
8,791
Non-controlling interests
1,498
446
6
TOTAL EQUITY
554,593
654,371
8,797
LIABILITIES
Financial liabilities
Loans and borrowings
7,458
55,417
745
Derivative liabilities
–
1
^
Lease liabilities
13,513
15,056
202
Other financial liabilities
2,291
3,676
49
Deferred tax liabilities
4,633
14,989
201
Non-current tax liabilities
11,069
14,520
195
Other non-current liabilities
7,835
8,238
111
Provisions
2
6
^
Total non-current liabilities
46,801
111,903
1,503
Financial liabilities
Loans, borrowings and bank overdrafts
75,874
78,501
1,055
Derivative liabilities
1,070
340
5
Trade payables and accrued expenses
78,870
87,506
1,175
Lease liabilities
7,669
8,647
116
Other financial liabilities
1,470
3,906
53
Contract liabilities
22,535
28,161
379
Current tax liabilities
17,324
18,992
255
Other current liabilities
24,552
24,238
326
Provisions
676
805
11
Total current liabilities
230,040
251,096
3,375
TOTAL LIABILITIES
276,841
362,999
4,878
TOTAL EQUITY AND LIABILITIES
831,434
1,017,370
13,675
^ Value is less than 1
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Rs in millions, except share and per share data, unless otherwise stated)
Three months ended December 31,
Nine months ended December 31,
2020
2021
2021
2020
2021
2021
Convenience translation into US dollar in millions
Refer footnote 1
Convenience translation into US dollar in millions
Refer footnote 1
Revenues
156,700
203,136
2,731
456,976
582,334
7,828
Cost of revenues
(104,313)
(142,778)
(1,919)
(313,400)
(407,907)
(5,483)
Gross profit
52,387
60,358
812
143,576
174,427
2,345
Selling and marketing expenses
(11,326)
(13,988)
(189)
(30,721)
(40,857)
(549)
General and administrative expenses
(7,814)
(12,036)
(162)
(25,997)
(33,854)
(455)
Foreign exchange gains/(losses), net
566
1,187
16
2,109
3,280
44
Other operating income/(loss), net
–
14
^
(81)
2,179
29
Results from operating activities
33,813
35,535
477
88,886
105,175
1,414
Finance expenses
(1,400)
(1,403)
(19)
(3,966)
(3,608)
(49)
Finance and other income
5,975
3,578
48
16,465
12,311
165
Share of net profit/ (loss) of associates accounted for using the equity method
101
76
1
126
73
1
Profit before tax
38,489
37,786
507
101,511
113,951
1,531
Income tax expense
(8,524)
(8,063)
(108)
(22,590)
(22,547)
(303)
Profit for the period
29,965
29,723
399
78,921
91,404
1,228
Profit attributable to:
Equity holders of the Company
29,667
29,690
399
78,225
91,318
1,227
Non-controlling interests
298
33
^
696
86
1
Profit for the period
29,965
29,723
399
78,921
91,404
1,228
Earnings per equity share:
Attributable to equity holders of the Company
Basic
5.21
5.43
0.07
13.74
16.71
0.22
Diluted
5.17
5.42
0.07
13.46
16.67
0.22
Weighted average number of equity shares
used in computing earnings per equity share
Basic
5,696,798,493
5,467,954,878
5,467,954,878
5,694,731,405
5,465,359,077
5,465,359,077
Diluted
5,741,070,466
5,481,204,821
5,481,204,821
5,812,779,105
5,478,766,612
5,478,766,612
^ Value is less than 1
Additional Information:
Particulars
Three months ended
Nine months ended
Year ended
December
31, 2021
September
30, 2021
December
31, 2020
December
31, 2021
December
31, 2020
March
31, 2021
Audited
Audited
Audited
Audited
Audited
Audited
Revenue
IT Services
Americas 1
56,644
53,205
45,015
159,532
131,581
178,091
Americas 2
61,076
59,260
44,702
175,441
133,346
179,821
Europe
59,620
58,619
42,880
172,700
120,334
165,441
APMEA
23,596
22,715
20,717
67,543
61,637
82,462
Total of IT Services
200,936
193,799
153,314
575,216
446,898
605,815
IT Products
1,767
1,894
1,563
4,972
5,568
7,685
ISRE
1,623
1,867
2,388
5,427
6,610
8,912
Reconciling Items
(3)
47
1
(1)
9
13
Total Revenue
204,323
197,607
157,266
585,614
459,085
622,425
Other operating income/(loss), net
IT Services
14
15
–
2,179
(81)
(81)
Total Other operating income/(loss), net
14
15
–
2,179
(81)
(81)
Segment Result
IT Services
Americas 1
11,390
10,521
8,075
31,290
23,177
33,040
Americas 2
12,057
11,819
10,190
35,226
31,089
41,589
Europe
9,172
9,186
9,283
26,683
22,969
31,673
APMEA
2,483
3,028
2,778
8,577
8,402
11,476
Unallocated
173
(156)
2,945
73
3,896
5,153
Other operating income/(loss), net
14
15
–
2,179
(81)
(81)
Total of IT Services
35,289
34,413
33,271
104,028
89,452
122,850
IT Products
96
94
78
137
(100)
45
ISRE
134
393
471
1,002
474
1,061
Reconciling Items
16
20
(7)
8
(940)
(903)
Total
35,535
34,920
33,813
105,175
88,886
123,053
Finance expenses
(1,403)
(1,459)
(1,400)
(3,608)
(3,966)
(5,088)
Finance and Other Income
3,578
4,114
5,975
12,311
16,465
20,912
Share of net profit/ (loss) of associates accounted for using the equity method
76
(10)
101
73
126
130
Profit before tax
37,786
37,565
38,489
113,951
101,511
139,007
The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).
IT Services: As announced on November 12, 2020, effective January 1, 2021, the Company re-organized IT Services segment.to four Strategic Market Units (“SMUs”) – Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).
Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.
Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM”). Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada. Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.
IT Products: The Company is a value-added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.
India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by the Government of India and/ or any State Governments.
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn)
Three Months ended December 31, 2021
IT Services Revenue as per IFRS $ 2,639.7
Effect of Foreign currency exchange movement $ 17.2
Non-GAAP Constant Currency IT Services Revenue based on $ 2,656.9
previous quarter exchange rates
Three Months ended December 31, 2021
IT Services Revenue as per IFRS $ 2,639.7
Effect of Foreign currency exchange movement $ 21.2
Non-GAAP Constant Currency IT Services Revenue based on $ 2,660.9
exchange rates of comparable period in previous year
