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Wipro Announces Third Quarter Results, Delivers Record Total Bookings

IT Services Revenue for the quarter increased 10.4% YoY

IT Services improves Operating Margin to 16.3%

Total Bookings up by 26% and large deal bookings up by 69% YoY

Operating Cash Flows at 143% of Net Income for the quarter

NEW YORK & BANGALORE, India--(BUSINESS WIRE)--$WIPRO #Digital--Wipro 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 December 31, 2022.

Highlights of the Results

Results for the Quarter ended December 31, 2022:

  • Gross Revenue reached Rs 232.3 billion ($2.8 billion1), an increase of 3.1% QoQ and 14.4% YoY
  • IT Services Segment Revenue increased to $2,803.5 million, an improvement of 6.2% YoY
  • Non-GAAP2 constant currency IT Services segment revenue was up by 0.6% QoQ and 10.4% YoY
  • IT Services Operating Margin3 for the quarter was at 16.3%, an increase of 120bps QoQ
  • Total Bookings4 up by 26% and large deal bookings5 up by 69% YoY
  • Net Income for the quarter was at Rs 30.5 billion ($369.1 million1), a growth of 14.8% QoQ and 2.8% YoY
  • Earnings Per Share for the quarter was at Rs 5.57 ($0.071), an increase of 14.6% QoQ and 2.6% YoY
  • Operating Cash Flows at 142.5% of Net Income for the quarter was at Rs 43.5 billion ($526.0 million1), an increase of 44.7% YoY
  • Voluntary attrition6 moderated 180 bps from previous quarter, landing at 21.2% for the trailing twelve months for the quarter
  • Top 5 clients grew 15.7% YoY and top 10 clients grew 14.7% YoY in constant currency terms, underscoring deepening relationships with top strategic clients
  • Wipro declared an interim dividend of Rs 1 ($0.0121) per equity share/ADS

Performance for the Quarter ended December 31, 2022

Thierry Delaporte, CEO and Managing Director, said, “I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row.

We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market.

As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises.”

Jatin Dalal, Chief Financial Officer, said, “Our Operating margins are now at 16.3%, which is an expansion of 120 basis points from last quarter. This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies. We generated strong operating cash flows at 143% of our net income for the quarter and our EPS increased by 14.6% quarter-over-quarter.”

Outlook for the Year ending March 31, 2023

We expect Revenue from our IT Services business for the full year to be in the range of 11.5% to 12.0%, in constant currency terms.

* Outlook for the year ending March 31, 2023, is based on the following exchange rates: GBP/USD at 1.36, Euro/USD at 1.16, AUD/USD at 0.73, USD/INR at 74.78 and CAD/USD at 0.79

IT Services – Large deals

Wipro continued its momentum in winning large deals with our customers as described below:

  • A global leader in consumer brands selected Wipro to create a three-year consumer digital & technology transformation roadmap. Wipro is deploying data analytics and AI to help put the consumer at the core of the company’s omni-channel direct-to-consumer operating model. The solution will help strengthen the company's brand building, innovation and sales capabilities and achieve its ambition of driving growth and loyalty among customers.
  • Wipro has won a large strategic, multi-year engagement with a leading North American financial institution to modernize and transform their applications portfolio globally. The engagement will focus on digital transformation and automation for enhanced customer experience and business value creation.
  • Wipro has been engaged by a US-based multinational technology conglomerate to build core product platform and design, test and modernize unique silicon chips for its next-generation connected products. The project will tap into Wipro’s deep domain expertise in helping enterprises deploy high-performance, new-age chip solutions in sync with changing consumer and enterprise needs. This win places Wipro Engineering Edge at the forefront of silicon innovation with low latency, low power, and ultra-reliable applications which will deliver unparalleled experiences for the end-consumers.

IT Services - Digital services deals

We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:

  • A joint Capco and Wipro team is supporting a large UK retail bank with their vision to become the pre-eminent UK digital insurer. Our mission is to drive the end-to-end transformation of the UK General Insurance business, leveraging our deep domain and technological expertise to completely rebuild the customer and employee experience, harnessing the power of data and automation.
  • One of the largest Australia-based energy transmission and distribution services businesses has selected Wipro as its strategic partner to integrate and transform its digital operating model. Wipro will leverage innovation, simplification, and automation to deliver business impact and value through technology investments. In this outcome-based partnership, Wipro will help the customer enhance user experience and improve operational efficiency.
  • Wipro has expanded its relationship with a leading Middle East-based airport management company with an end-to-end strategic partnership deal, which marks our largest deal in the airport domain in the Middle East. Wipro will run the airport’s end-to-end IT operations, upgrade technology infrastructure and expand digital services, leveraging futuristic technologies.
  • Wipro is helping a large consumer goods company to move to agile ways of working with a scalable contract that provides flexibility to the business. This is in addition to maintaining best-in-class availability and performance for global platforms across 200 countries. The scope also includes modernizing the platforms.

Analyst Recognition

  • Wipro was recognized as a Leader in the 2022 Gartner® Magic Quadrant™ for Managed Network Services
  • Wipro was named as a Leader and a Star Performer in Everest Group's System Integration Capabilities on GCP PEAK Matrix® Assessment 2022
  • Wipro was positioned as a Leader in IDC MarketScape: EMEA Industrial IoT Service Providers for Oil and Gas Companies 2022 Vendor Assessment (Doc # EUR147586921 October 2022)
  • Wipro was recognized as a Leader in Avasant Manufacturing Digital Services and Utilities Digital Services RadarView™ 2022 – 2023
  • Wipro was rated as a Leader and a Star Performer in Everest Group's Risk & Compliance in BFS IT Services PEAK Matrix® Assessment 2023
  • Wipro was featured in HFS Horizons: Automation Service Providers, 2022 and Healthcare Payer Service Providers, 2022
  • Wipro was named as a Leader in ISG Provider Lens™ Future of Work - Services and Solutions 2022 – US and Switzerland (multiple quadrants)
  • Wipro was rated as a Leader in Avasant Oracle Cloud ERP Services and Digital CX Services RadarView™ 2022 – 2023
  • Wipro was rated as a Leader in Everest Group’s Workplace Communication and Collaboration (WCC) Services PEAK Matrix® Assessment 2022
  • Wipro was rated as a Leader in Avasant Property and Casualty Insurance Digital Services and Claims Processing Business Process Transformation RadarView™ 2022 – 2023

Disclaimer: *Gartner, “Magic Quadrant for Managed Network Services “, Ted Corbett, et al, 5 December 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 1.7 billion ($20.8 million1)
  • IT Products segment results for the quarter was a profit of Rs 0.04 billion ($0.50 million1)

India business from State Run Enterprises (ISRE)

  • India SRE segment revenue for the quarter was Rs 1.4 billion ($17.0 million1)
  • India SRE segment results for the quarter was a profit of Rs 0.10 billion ($1.23 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 Key Metrics and Non-GAAP Financial Measures

This press release contains key metrics and 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.

Our key metrics and non-GAAP financial measures are 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. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our non-GAAP measures, 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, 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=WIP13012023.

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 250,000 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.

  1. 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 82.72, as published by the Federal Reserve Board of Governors on December 31, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2022 was US$1= Rs 82.24
  2. 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
  3. IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials
  4. Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and changes to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract.
  5. Large deal bookings constitute of deals greater than or equal to $30 million in total contract value terms
  6. Voluntary attrition is at IT Services excluding DOP measured in trailing twelve months for the quarter

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 December 31, 2022

 

 

 

 

Convenience translation into

US dollar in millions

Refer footnote 1

ASSETS

Goodwill

246,989

309,525

3,742

Intangible assets

43,555

45,847

554

Property, plant and equipment

90,898

90,147

1,090

Right-of-Use assets

18,870

19,381

234

Financial assets

Derivative assets

6

88

1

Investments

19,109

20,808

252

Trade receivables

4,765

4,626

56

Other financial assets

6,084

6,123

74

Investments accounted for using the equity method

774

782

9

Deferred tax assets

2,298

4,043

49

Non-current tax assets

10,256

11,450

138

Other non-current assets

14,826

14,045

170

Total non-current assets

458,430

526,865

6,369

Inventories

1,334

2,019

24

Financial assets

Derivative assets

3,032

930

11

Investments

241,655

291,743

3,527

Cash and cash equivalents

103,836

87,307

1,055

Trade receivables

115,219

124,761

1,510

Unbilled receivables

60,809

56,316

681

Other financial assets

42,914

9,532

115

Contract assets

20,647

25,181

304

Current tax assets

2,373

4,463

54

Other current assets

28,933

36,123

437

Total current assets

620,752

638,375

7,718

 

TOTAL ASSETS

1,079,182

1,165,240

14,087

 

EQUITY

Share capital

10,964

10,974

133

Share premium

1,566

3,151

38

Retained earnings

551,252

635,267

7,680

Share-based payment reserve

5,258

6,086

74

Special Economic Zone re-investment reserve

47,061

47,014

568

Other components of equity

42,057

52,382

633

Equity attributable to the equity holders of the Company

658,158

754,874

9,126

Non-controlling interests

515

402

5

TOTAL EQUITY

658,673

755,276

9,131

 

LIABILITIES

Financial liabilities

Loans and borrowings

56,463

61,718

746

Lease liabilities

15,177

15,520

188

Derivative liabilities

48

165

2

Other financial liabilities

2,961

2,267

27

Deferred tax liabilities

12,141

13,338

161

Non-current tax liabilities

17,818

21,846

264

Other non-current liabilities

7,571

9,865

119

Provisions

1

^

^

Total non-current liabilities

112,180

124,719

1,507

Financial liabilities

Loans, borrowings and bank overdrafts

95,233

96,511

1,167

Lease liabilities

9,056

9,300

112

Derivative liabilities

585

7,199

87

Trade payables and accrued expenses

99,034

89,613

1,084

Other financial liabilities

33,110

4,341

52

Contract liabilities

27,915

26,903

325

Current tax liabilities

13,231

19,580

237

Other current liabilities

27,394

29,274

354

Provisions

2,771

2,524

31

Total current liabilities

308,329

285,245

3,449

TOTAL LIABILITIES

420,509

409,964

4,956

 

TOTAL EQUITY AND LIABILITIES

1,079,182

1,165,240

14,087

^ 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,

2021

 

2022

 

2022

 

2021

 

2022

 

2022

 

Convenience

translation into

US dollar in

millions

Refer footnote 1

Convenience

translation into

US dollar in millions

Refer footnote 1

Revenues

203,136

 

232,290

 

2,808

 

582,334

 

672,973

 

8,136

 

Cost of revenues

(142,778

)

(163,273

)

(1,974

)

(407,907

)

(482,708

)

(5,836

)

Gross profit

60,358

 

69,017

 

834

 

174,427

 

190,265

 

2,300

 

 

Selling and marketing expenses

(13,988

)

(17,752

)

(215

)

(40,857

)

(48,251

)

(583

)

General and administrative expenses

(12,036

)

(15,020

)

(181

)

(33,854

)

(43,467

)

(525

)

Foreign exchange gains/(losses), net

1,187

 

1,391

 

17

 

3,280

 

3,482

 

42

 

Other operating income

14

 

-

 

-

 

2,179

 

-

 

-

 

Results from operating activities

35,535

 

37,636

 

455

 

105,175

 

102,029

 

1,234

 

 

Finance expenses

(1,403

)

(2,902

)

(35

)

(3,608

)

(7,217

)

(87

)

Finance and other income

3,578

 

4,992

 

61

 

12,311

 

12,722

 

154

 

Share of net profit/ (loss) of associates

accounted for using the equity method

76

 

26

 

^

73

 

(61

)

(1

)

Profit before tax

37,786

 

39,752

 

481

 

113,951

 

107,473

 

1,300

 

Income tax expense

(8,063

)

(9,102

)

(110

)

(22,547

)

(24,743

)

(299

)

Profit for the period

29,723

 

30,650

 

371

 

91,404

 

82,730

 

1,001

 

 

Profit attributable to:

Equity holders of the Company

29,690

 

30,529

 

370

 

91,318

 

82,755

 

1,001

 

Non-controlling interests

33

 

121

 

1

 

86

 

(25

)

^

Profit for the period

29,723

 

30,650

 

371

 

91,404

 

82,730

 

1,001

 

 

Earnings per equity share:

Attributable to equity holders of the Company

Basic

5.43

 

5.57

 

0.07

 

16.71

 

15.12

 

0.18

 

Diluted

5.42

 

5.56

 

0.07

 

16.67

 

15.08

 

0.18

 

 

Weighted average number of equity shares

used in computing earnings per equity share

Basic

5,467,954,878

 

5,480,138,169

 

5,480,138,169

 

5,465,359,077

 

5,475,982,068

 

5,475,982,068

 

Diluted

5,481,204,821

 

5,486,025,875

 

5,486,025,875

 

5,478,766,612

 

5,487,483,177

 

5,487,483,177

 

^ Value is less than 1

Additional Information:

Particulars

Three months ended

Nine months ended

Year ended

December

31, 2022

September

30, 2022

December

31, 2021

December

31, 2022

December

31, 2021

March

31, 2022

Audited

Audited

Audited

Audited

Audited

Audited

Revenue

IT Services

Americas 1

67,788

 

65,350

 

56,644

 

194,840

 

159,532

 

217,874

 

Americas 2

71,168

 

70,030

 

61,076

 

207,811

 

175,441

 

239,404

 

Europe

66,323

 

62,684

 

59,620

 

189,283

 

172,700

 

233,443

 

APMEA

25,278

 

25,565

 

23,596

 

75,100

 

67,543

 

91,103

 

Total of IT Services

230,557

 

223,629

 

200,936

 

667,034

 

575,216

 

781,824

 

IT Products

1,721

 

1,249

 

1,767

 

4,916

 

4,972

 

6,173

 

ISRE

1,403

 

1,576

 

1,623

 

4,505

 

5,427

 

7,295

 

Reconciling Items

-

 

-

 

(3

)

-

 

(1

)

(3

)

Total Revenue

233,681

 

226,454

 

204,323

 

676,455

 

585,614

 

795,289

 

 

Other operating income

IT Services

-

 

-

 

14

 

-

 

2,179

 

2,186

 

Total Other operating income

-

 

-

 

14

 

-

 

2,179

 

2,186

 

 

Segment Result

IT Services

Americas 1

12,986

 

12,358

 

11,390

 

36,374

 

31,290

 

42,820

 

Americas 2

14,776

 

14,219

 

12,057

 

41,449

 

35,226

 

47,376

 

Europe

9,485

 

7,875

 

9,172

 

24,734

 

26,683

 

35,739

 

APMEA

2,476

 

2,194

 

2,483

 

6,274

 

8,577

 

10,523

 

Unallocated

(2,219

)

(2,845

)

173

 

(5,694

)

73

 

434

 

Other operating income

-

 

-

 

14

 

-

 

2,179

 

2,186

 

Total of IT Services

37,504

 

33,801

 

35,289

 

103,137

 

104,028

 

139,078

 

IT Products

41

 

(103

)

96

 

(117

)

137

 

115

 

ISRE

102

 

146

 

134

 

421

 

1,002

 

1,173

 

Reconciling Items

(11

)

(1,341

)

16

 

(1,412

)

8

 

(80

)

Total Segment result

37,636

 

32,503

 

35,535

 

102,029

 

105,175

 

140,286

 

Finance expenses

(2,902

)

(2,270

)

(1,403

)

(7,217

)

(3,608

)

(5,325

)

Finance and Other Income

4,992

 

4,040

 

3,578

 

12,722

 

12,311

 

16,257

 

Share of net profit/ (loss) of associates

accounted for using the equity method

26

 

(72

)

76

 

(61

)

73

 

57

 

Profit before tax

39,752

 

34,201

 

37,786

 

107,473

 

113,951

 

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.

Contacts

Contact for Investor Relations
Dipak Kumar Bohra

Phone: +91-80-6142 7201

[email protected]

Abhishek Kumar Jain

Phone: +91-80-6142 6143

[email protected]

Contact for Media & Press
Purnima Burman

Phone: +91-80-6142 6450

[email protected]

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