Business Wire IndiaWipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2022.
Highlights of the Results
Results for the Quarter ended June 30, 2022:
Gross Revenue was Rs 215.3 billion ($2.7 billion1), an increase of 17.9% YoY
IT Services Segment Revenue was at $2,735.5 million, an increase of 13.3% YoY
Non-GAAP2 constant currency IT Services segment revenue increased by 2.1% QoQ and 17.2% YoY
IT Services Operating Margin3 for the quarter was at 15.0%, a decrease of 200 bps QoQ
Net Income for the quarter was Rs 25.6 billion ($324.4 million1) and Earnings Per Share for the quarter was at Rs 4.69 ($0.061)
Our closing strength of employees for IT Services was at 258,574, an increase of 15,446 QoQ
Performance for the Quarter ended June 30, 2022
Thierry Delaporte, CEO and Managing Director said, “We have made significant investments in Wipro’s growth engine and are very pleased with the outcomes. Our order bookings grew 32% YoY in Total Contract Value terms, powered by large transformational deals, and our pipeline today is at an all-time high. We continue to reinforce the investments that allow us to grow our business, remain agile in the market and efficient as an organization, while staying focused on serving our clients even better.”
Jatin Dalal, Chief Financial Officer said, “We are consistently investing in solutions and capabilities for our growth to further strengthen our position of being a strategic partner for our clients. At 15% of operating margins, we believe that we have bottomed out.”
Outlook for the quarter ending September 30, 2022
We expect Revenue from our IT Services business to be in the range of $2,817 million to $2,872 million*. This translates to a sequential growth of 3.0% to 5.0%.
*Outlook is based on the following exchange rates: GBP/USD at 1.25, Euro/USD at 1.06, AUD/USD at 0.72, USD/INR at 76.60 and CAD/USD at 0.77
IT Services
Wipro continued its momentum in winning large deals with our customers as described below:
A large, US-based healthcare company has selected Wipro for the consolidation and transformation of its Commercial Claims Operations. This strategic partnership will provide the client with significant savings through best-in-class execution, transformation, process remodelling, and automation.
The global leader in sustainable stainless steel, Outokumpu, has signed a five-year deal of Application Management Services with Wipro to drive agile and application cloud transformation.
Wipro has entered a five-year engagement with Insignia Financial Limited, an ASX-listed Top 200 company and one of Australia’s leading financial services providers. Through this partnership, Wipro and Insignia Financial will focus on delivering innovative solutions, including efficient processes around technology and operations capabilities, superior end-customer outcomes as well as cost optimization.
Wipro has won a multi-year engagement with a global communications agency to build their future model for ERP and digitization. Wipro’s delivery centres in UK and India will build and scale operations to enhance the company’s capacity.
Wipro has won a multi-year contract with one of Australia’s largest financial services firms to provide application and infrastructure support services. Wipro will support the client’s technology transformation, improve efficiency and enhance customer experience.
Digital Services Highlights
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
A leading Mobility Technology company has selected Wipro as an extension of their global engineering team to support them on the development of software defined vehicle applications.
A US-based multinational company has awarded Designit a managed services contract to provide a team of designers who will work with the company’s user experience team.
A global, athletic apparel and footwear company has selected Designit to re-imagine the customer experience and logistics of all its new retail store openings in North America.
A US-based multinational financial services corporation has selected Wipro to manage and transform the customer’s global application landscape with industry-leading practices and deliver enhanced consumer experiences.
Analyst Recognition
Wipro was recognized as a Leader in the 2022 Gartner ® Magic Quadrant™ for Finance and Accounting Business Process Outsourcing
Wipro was recognized as a Leader in Everest Group’s Healthcare Payer Digital Services and Life Sciences Operations PEAK Matrix® Assessment 2022
Wipro was named as a Leader in IDC MarketScape: Worldwide Intelligent Automation Services 2022 Vendor Assessment (Doc # US48061422, May 2022)
Wipro was recognized as a Leader in IDC MarketScape: Gulf Countries Cloud Professional Services 2022 Vendor Assessment (Doc # META47590721, May 2022)
Wipro was positioned as a Leader in multiple quadrants in ISG Provider Lens™ – Salesforce Ecosystem Partners 2022 – Germany and US
Wipro is recognized amongst the top ten service providers in Whitelane IT Sourcing Study 2022 – UK
Wipro was rated as a Leader in Avasant Retail Digital and Banking Digital Services RadarView™ 2022 – 2023
Wipro was rated as a Leader in Avasant Salesforce, Internet of Things, Risk and Compliance, Cybersecurity and Banking Process Transformation Services RadarView™ 2022
Wipro was recognized as a Leader in Avasant Multisourcing Service Integration RadarView™ 2021 – 2022
Wipro was recognized as a Leader in Avasant Applied AI and Advanced Analytics Services RadarView™ 2021
Disclaimer: Gartner, “Magic Quadrant for Finance and Accounting Business Process Outsourcing”, Sanjay Champaneri, et al, 27 June 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. 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’s 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 1.9 billion ($24.6 million1)
IT Products segment results for the quarter was a loss of Rs 0.06 billion ($0.70 million1)
India business from State Run Enterprises (ISRE)
India SRE segment revenue for the quarter was Rs 1.5 billion ($19.3 million1)
India SRE segment results for the quarter was a profit of Rs 0.17 billion ($2.2 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 June 30, 2022, 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 07:30 p.m. Indian Standard Time (10:00 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=WIP220720
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 technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With over 240,000 employees and business partners across 66 countries, we deliver on the promise of helping our customers, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.wipro.com
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 79.02, as published by the Federal Reserve Board of Governors on June 30, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2022 was US$1= Rs 77.81
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, 2022
As at June 30, 2022
Convenience translation into US dollar in millions
Refer footnote 1
ASSETS
Goodwill
246,989
296,126
3,747
Intangible assets
43,555
49,199
623
Property, plant and equipment
90,898
91,676
1,160
Right-of-Use assets
18,870
18,789
238
Financial assets
Derivative assets
6
2
^
Investments
19,109
21,336
270
Trade receivables
4,765
4,565
58
Other financial assets
6,084
6,340
80
Investments accounted for using the equity method
774
791
10
Deferred tax assets
2,298
3,848
49
Non-current tax assets
10,256
10,237
130
Other non-current assets
14,826
14,898
189
Total non-current assets
458,430
517,807
6,554
Inventories
1,334
1,678
21
Financial assets
Derivative assets
3,032
3,678
47
Investments
241,655
226,564
2,867
Cash and cash equivalents
103,836
82,828
1,048
Trade receivables
115,219
127,312
1,611
Unbilled receivables
60,809
66,640
843
Other financial assets
42,914
12,969
164
Contract assets
20,647
24,969
316
Current tax assets
2,373
3,734
47
Other current assets
28,933
34,701
439
Total current assets
620,752
585,073
7,403
TOTAL ASSETS
1,079,182
1,102,880
13,957
EQUITY
Share capital
10,964
10,965
139
Share premium
1,566
1,658
21
Retained earnings
551,252
576,094
7,290
Share-based payment reserve
5,258
6,410
81
Special Economic Zone re-investment reserve
47,061
47,992
607
Other components of equity
42,057
43,772
554
Equity attributable to the equity holders of the Company
658,158
686,891
8,692
Non-controlling interests
515
415
5
TOTAL EQUITY
658,673
687,306
8,697
LIABILITIES
Financial liabilities
Loans and borrowings
56,463
58,862
745
Lease liabilities
15,177
15,033
190
Derivative liabilities
48
146
2
Other financial liabilities
2,961
2,504
32
Deferred tax liabilities
12,141
14,062
179
Non-current tax liabilities
17,818
16,237
205
Other non-current liabilities
7,571
8,244
104
Provisions
1
^
^
Total non-current liabilities
112,180
115,088
1,457
Financial liabilities
Loans, borrowings and bank overdrafts
95,233
115,330
1,460
Lease liabilities
9,056
8,652
109
Derivative liabilities
585
5,022
64
Trade payables and accrued expenses
99,034
88,480
1,120
Other financial liabilities
33,110
6,081
77
Contract liabilities
27,915
26,377
334
Current tax liabilities
13,231
21,105
267
Other current liabilities
27,394
26,872
340
Provisions
2,771
2,567
32
Total current liabilities
308,329
300,486
3,803
TOTAL LIABILITIES
420,509
415,574
5,260
TOTAL EQUITY AND LIABILITIES
1,079,182
1,102,880
13,957
^ Value is less than 1
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Rs in millions, except share and per share data, unless otherwise stated)
Three months ended June 30,
2021
2022
2022
Convenience translation into US dollar in millions
Refer footnote 1
Revenues
182,524
215,286
2,724
Cost of revenues
(127,567)
(155,600)
(1,969)
Gross profit
54,957
59,686
755
Selling and marketing expenses
(13,017)
(15,359)
(194)
General and administrative expenses
(10,530)
(13,471)
(170)
Foreign exchange gains/(losses), net
1,160
1,034
13
Other operating income
2,150
–
–
Results from operating activities
34,720
31,890
404
Finance expenses
(746)
(2,045)
(26)
Finance and other income
4,619
3,690
47
Share of net profit/ (loss) of associates accounted for using the equity method
7
(15)
^
Profit before tax
38,600
33,520
425
Income tax expense
(6,225)
(7,931)
(100)
Profit for the period
32,375
25,589
325
Profit attributable to:
Equity holders of the Company
32,321
25,636
326
Non-controlling interests
54
(47)
(1)
Profit for the period
32,375
25,589
325
Earnings per equity share:
Attributable to equity holders of the Company
Basic
5.92
4.69
0.06
Diluted
5.90
4.67
0.06
Weighted average number of equity shares
used in computing earnings per equity share
Basic
5,462,996,981
5,471,449,783
5,471,449,783
Diluted
5,476,992,662
5,485,057,994
5,485,057,994
^ Value is less than 1
Additional Information:
Particulars
Three months ended
Year ended
June 30,
2022
March 31,
2022
June 30,
2021
March
31, 2022
Audited
Audited
Audited
Audited
Revenue
IT Services
Americas 1
61,702
58,342
49,683
217,874
Americas 2
66,613
63,963
55,105
239,404
Europe
60,276
60,743
54,461
233,443
APMEA
24,257
23,560
21,232
91,103
Total of IT Services
212,848
206,608
180,481
781,824
IT Products
1,946
1,201
1,311
6,173
ISRE
1,526
1,868
1,937
7,295
Reconciling Items
–
(2)
(45)
(3)
Total Revenue
216,320
209,675
183,684
795,289
Other operating income
IT Services
–
7
2,150
2,186
Total Other operating income
–
7
2,150
2,186
Segment Result
IT Services
Americas 1
11,030
11,530
9,379
42,820
Americas 2
12,454
12,150
11,350
47,376
Europe
7,374
9,056
8,325
35,739
APMEA
1,604
1,946
3,066
10,523
Unallocated
(630)
361
56
434
Other operating income
–
7
2,150
2,186
Total of IT Services
31,832
35,050
34,326
139,078
IT Products
(55)
(22)
(53)
115
ISRE
173
171
475
1,173
Reconciling Items
(60)
(88)
(28)
(80)
Total Segment result
31,890
35,111
34,720
140,286
Finance expenses
(2,045)
(1,717)
(746)
(5,325)
Finance and Other Income
3,690
3,946
4,619
16,257
Share of net profit/ (loss) of associates accounted for using the equity method
(15)
(16)
7
57
Profit before tax
33,520
37,324
38,600
151,275
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 June 30, 2022
IT Services Revenue as per IFRS $ 2,735.5
Effect of Foreign currency exchange movement $ 43.9
Non-GAAP Constant Currency IT Services Revenue based on $ 2,779.4
previous quarter exchange rates
Three Months ended June 30, 2022
IT Services Revenue as per IFRS $ 2,735.5
Effect of Foreign currency exchange movement $ 93.7
Non-GAAP Constant Currency IT Services Revenue based on $ 2,829.3
exchange rates of comparable period in previous year
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