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Wipro Limited Announces Results for the Quarter ended June 30, 2022 under IFRS

IT Services delivers constant currency growth in revenues at 17.2% in YoY CC

NEW YORK & BANGALORE, India--(BUSINESS WIRE)--$WIPRO #IFRS--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 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.

  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 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
  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
 

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
 

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 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 previous quarter exchange rates

$

2,779.4

 

 

 

 

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 exchange rates of comparable period in previous year

$

2,829.3

 

Contacts

Contact for Investor Relations
Aparna Iyer

Phone: +91-80-6142 7139

[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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