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 September 30, 2022
NEW YORK & BANGALORE, India--(BUSINESS WIRE)--Oct 12, 2022--
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 September 30, 2022.
Highlights of the Results
Results for the Quarter ended September 30, 2022:
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 81.37, as published by the Federal Reserve Board of Governors on September 30, 2022. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2022 was US$1= Rs 79.93
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
Voluntary attrition is at IT Services excluding DOP measured in trailing twelve months for the quarter
Large deal bookings constitute of deals greater than or equal to $30 million in Total contract value terms
Performance for the Quarter ended September 30, 2022
Thierry Delaporte, CEO and Managing Director, said, “Our strong performance in the quarter is further proof that our strategy is yielding the intended results. The solid growth in our bookings, large deal signings, and revenues underscore our improved market competitiveness and enhanced value proposition.
Our ongoing investments in high-growth strategic areas have allowed us to steadily increase our win rate and enhance the quality of our pipeline. As a result of these efforts and our sharp focus on operational excellence, we are now seeing an improvement in our margins.
We continue to invest in and upskill our talent to stay ahead of our clients’ evolving needs. In the second quarter, we promoted more than 10,000 colleagues and increased salaries across bands. We are pleased to report that we recorded a third consecutive quarter of moderation in attrition.
As the market conditions evolve, I believe our comprehensive portfolio of differentiated offerings position us extremely well to serve the changing needs of our clients and help them face the challenges of an uncertain macro environment with confidence.”
Jatin Dalal, Chief Financial Officer, said, “We achieved margins of 15.1% in Q2 after absorbing the impact of salary increases and promotions. Our margin improvement was led by better price realisations and strong operational improvements in automation-led productivity. Our Operating Cash Flows was robust and at 181% of our Net Income for the year.”
Outlook for the Quarter ending December 31, 2022
We expect Revenue from our IT Services business to be in the range of $2,811 million to $2,853 million*. This translates to a sequential growth of 0.5% to 2.0%.
*Outlook is based on the following exchange rates: GBP/USD at 1.18, Euro/USD at 1.01, AUD/USD at 0.68, USD/INR at 79.47 and CAD/USD at 0.75
IT Services – Large deals
Wipro continued its momentum in winning large deals with our customers as described below:
IT Services - Digital services deals
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
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IT Products segment revenue for the quarter was Rs 1.2 billion ($15.3 million 1 )
IT Products segment results for the quarter was a loss of Rs 0.10 billion ($1.27 million 1 )
India business from State Run Enterprises (ISRE)
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 September 30, 2022, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our websitewww.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=WIP121022
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
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.
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(Rs in millions, except share and per share data, unless otherwise stated)
Convenience translation
into US dollar
in millions
Refer footnote 1
Property, plant and equipment
Investments accounted for using the equity method
Cash and cash equivalents
Share-based payment reserve
Special Economic Zone re-investment reserve
Other components of equity
Equity attributable to the equity holders of the Company
Non-controlling interests
Other financial liabilities
Non-current tax liabilities
Other non-current liabilities
Total non-current liabilities
Loans, borrowings and bank overdrafts
Trade payables and accrued expenses
Other financial liabilities
Other current liabilities
Total current liabilities
TOTAL EQUITY AND LIABILITIES
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 September 30,
Six months ended September 30,
Convenience
translation into
US dollar
in millions
Refer footnote 1
Convenience
translation into
US dollar
in millions
Refer footnote 1
Selling and marketing expenses
General and administrative expenses
Foreign exchange gains/(losses), net
Results from operating activities
Share of net profit/ (loss) of associates accounted for using the equity method
Equity holders of the Company
Non-controlling interests
Earnings per equity share:
Attributable to equity holders of the Company
Weighted average number of equity shares
used in computing earnings per equity share
Total Other operating income
Share of net profit/ (loss) of associates accounted for using the equity method
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 selected GAAP measures to Non-GAAP measures
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($Mn)
Three Months ended September 30, 2022
IT Services Revenue as per IFRS
Effect of Foreign currency exchange movement
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates
Three Months ended September 30, 2022
IT Services Revenue as per IFRS
Effect of Foreign currency exchange movement
Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year
Reconciliation of Free Cash Flow for three months and six months ended September 30, 2022
Three months ended
September 30, 2022
Six months ended
September 30, 2022
Net Income for the period [A]
Computation of Free Cash Flow
Net cash generated from operating activities
Add/ (deduct) cash inflow/ (outflow)on:
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Free Cash Flow as percentage of Net Income [B/A]
CONTACT: Contact for Investor Relations
iyer.aparna@wipro.comAbhishek Kumar Jain
abhishekkumar.jain@wipro.comContact for Media & Press
KEYWORD: NEW YORK UNITED STATES INDIA NORTH AMERICA ASIA PACIFIC
INDUSTRY KEYWORD: TECHNOLOGY CONSULTING SECURITY OTHER TECHNOLOGY PROFESSIONAL SERVICES SOFTWARE NETWORKS INTERNET DATA MANAGEMENT
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PUB: 10/12/2022 10:22 AM/DISC: 10/12/2022 10:22 AM
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