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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:
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:
Analyst Recognition
IT Products
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
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.
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 September 30, 2022
Convenience translation
into US dollar
in millions
Refer footnote 1
ASSETS
Goodwill
246,989
302,608
3,719
Intangible assets
43,555
48,307
594
Property, plant and equipment
90,898
91,253
1,121
Right-of-Use assets
18,870
19,308
237
Financial assets
Derivative assets
6
125
2
Investments
19,109
21,266
261
Trade receivables
4,765
4,492
55
Other financial assets
6,084
6,080
75
Investments accounted for using the equity method
774
742
9
Deferred tax assets
2,298
3,984
49
Non-current tax assets
10,256
10,234
126
Other non-current assets
14,826
14,872
183
Total non-current assets
458,430
523,271
6,431
Inventories
1,334
2,006
25
Financial assets
Derivative assets
3,032
5,652
69
Investments
241,655
274,341
3,372
Cash and cash equivalents
103,836
73,023
897
Trade receivables
115,219
125,240
1,540
Unbilled receivables
60,809
62,526
768
Other financial assets
42,914
10,882
134
Contract assets
20,647
25,203
310
Current tax assets
2,373
4,458
55
Other current assets
28,933
35,268
433
Total current assets
620,752
618,599
7,603
TOTAL ASSETS
1,079,182
1,141,870
14,034
EQUITY
Share capital
10,964
10,971
135
Share premium
1,566
2,667
33
Retained earnings
551,252
603,002
7,411
Share-based payment reserve
5,258
5,819
72
Special Economic Zone re-investment reserve
47,061
48,404
595
Other components of equity
42,057
46,694
574
Equity attributable to the equity holders of the Company
658,158
717,557
8,820
Non-controlling interests
515
328
4
TOTAL EQUITY
658,673
717,885
8,824
LIABILITIES
Financial liabilities
Loans and borrowings
56,463
60,656
745
Lease liabilities
15,177
15,465
190
Derivative liabilities
48
154
2
Other financial liabilities
2,961
2,946
36
Deferred tax liabilities
12,141
13,388
165
Non-current tax liabilities
17,818
16,461
202
Other non-current liabilities
7,571
8,529
105
Provisions
1
^
^
Total non-current liabilities
112,180
117,599
1,445
Financial liabilities
Loans, borrowings and bank overdrafts
95,233
109,834
1,350
Lease liabilities
9,056
8,633
106
Derivative liabilities
585
7,306
90
Trade payables and accrued expenses
99,034
90,984
1,117
Other financial liabilities
33,110
5,823
72
Contract liabilities
27,915
25,967
319
Current tax liabilities
13,231
22,034
271
Other current liabilities
27,394
33,244
409
Provisions
2,771
2,561
31
Total current liabilities
308,329
306,386
3,765
TOTAL LIABILITIES
420,509
423,985
5,210
TOTAL EQUITY AND LIABILITIES
1,079,182
1,141,870
14,034
^ 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 September 30,
Six months ended September 30,
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
196,674
225,397
2,770
379,198
440,683
5,416
Cost of revenues
(137,562
)
(163,835
)
(2,013
)
(265,129
)
(319,435
)
(3,926
)
Gross profit
59,112
61,562
757
114,069
121,248
1,490
Selling and marketing expenses
(13,852
)
(15,140
)
(186
)
(26,869
)
(30,499
)
(375
)
General and administrative expenses
(11,288
)
(14,976
)
(184
)
(21,818
)
(28,447
)
(350
)
Foreign exchange gains/(losses), net
933
1,057
13
2,093
2,091
26
Other operating income
15
-
-
2,165
-
-
Results from operating activities
34,920
32,503
400
69,640
64,393
791
Finance expenses
(1,459
)
(2,270
)
(28
)
(2,205
)
(4,315
)
(53
)
Finance and other income
4,114
4,040
50
8,733
7,730
95
Share of net profit/ (loss) of associates accounted for using the equity method
(10
)
(72
)
(1
)
(3
)
(87
)
(1
)
Profit before tax
37,565
34,201
421
76,165
67,721
832
Income tax expense
(8,259
)
(7,710
)
(95
)
(14,484
)
(15,641
)
(192
)
Profit for the period
29,306
26,491
326
61,681
52,080
640
Profit attributable to:
Equity holders of the Company
29,307
26,590
327
61,628
52,226
642
Non-controlling interests
(1
)
(99
)
(1
)
53
(146
)
(2
)
Profit for the period
29,306
26,491
326
61,681
52,080
640
Earnings per equity share:
Attributable to equity holders of the Company
Basic
5.36
4.86
0.06
11.28
9.55
0.12
Diluted
5.35
4.85
0.06
11.25
9.52
0.12
Weighted average number of equity shares
used in computing earnings per equity share
Basic
5,464,831,135
5,476,167,685
5,476,167,685
5,464,021,919
5,473,962,200
5,473,962,200
Diluted
5,480,490,360
5,484,785,054
5,484,785,054
5,478,297,758
5,486,081,940
5,486,081,940
^ Value is less than 1
Additional Information:
Particulars
Three months ended
Six months ended
Year ended
September
30, 2022
June
30, 2022
September
30, 2021
September
30, 2022
September
30, 2021
March
31, 2022
Audited
Audited
Audited
Audited
Audited
Audited
Revenue
IT Services
Americas 1
65,350
61,702
53,205
127,052
102,888
217,874
Americas 2
70,030
66,613
59,260
136,643
114,365
239,404
Europe
62,684
60,276
58,619
122,960
113,080
233,443
APMEA
25,565
24,257
22,715
49,822
43,947
91,103
Total of IT Services
223,629
212,848
193,799
436,477
374,280
781,824
IT Products
1,249
1,946
1,894
3,195
3,205
6,173
ISRE
1,576
1,526
1,867
3,102
3,804
7,295
Reconciling Items
-
-
47
-
2
(3
)
Total Revenue
226,454
216,320
197,607
442,774
381,291
795,289
Other operating income
IT Services
-
-
15
-
2,165
2,186
Total Other operating income
-
-
15
-
2,165
2,186
Segment Result
IT Services
Americas 1
12,358
11,030
10,521
23,388
19,900
42,820
Americas 2
14,219
12,454
11,819
26,673
23,169
47,376
Europe
7,875
7,374
9,186
15,249
17,511
35,739
APMEA
2,194
1,604
3,028
3,798
6,094
10,523
Unallocated
(2,845
)
(630
)
(156
)
(3,475
)
(100
)
434
Other operating income
-
-
15
-
2,165
2,186
Total of IT Services
33,801
31,832
34,413
65,633
68,739
139,078
IT Products
(103
)
(55
)
94
(158
)
41
115
ISRE
146
173
393
319
868
1,173
Reconciling Items
(1,341
)
(60
)
20
(1,401
)
(8
)
(80
)
Total Segment result
32,503
31,890
34,920
64,393
69,640
140,286
Finance expenses
(2,270
)
(2,045
)
(1,459
)
(4,315
)
(2,205
)
(5,325
)
Finance and Other Income
4,040
3,690
4,114
7,730
8,733
16,257
Share of net profit/ (loss) of associates accounted for using the equity method
(72
)
(15
)
(10
)
(87
)
(3
)
57
Profit before tax
34,201
33,520
37,565
67,721
76,165
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 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
$
2,797.7
Effect of Foreign currency exchange movement
$
50.5
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates
$
2,848.2
Three Months ended September 30, 2022
IT Services Revenue as per IFRS
$
2,797.7
Effect of Foreign currency exchange movement
$
114.6
Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year
$
2,912.3
Reconciliation of Free Cash Flow for three months and six months ended September 30, 2022
Amount in INR Mn
Three months ended
September 30, 2022
Six months ended
September 30, 2022
Net Income for the period [A]
26,590
52,226
Computation of Free Cash Flow
Net cash generated from operating activities
48,009
49,793
Add/ (deduct) cash inflow/ (outflow)on:
Purchase of property, plant and equipment
(3,875)
(8,737)
Proceeds from sale of property, plant and equipment
14
181
Free Cash Flow [B]
44,148
41,237
Free Cash Flow as percentage of Net Income [B/A]
166.0%
79.0%
View source version on businesswire.com:https://www.businesswire.com/news/home/20221012005672/en/
CONTACT: Contact for Investor Relations
Aparna Iyer
Phone: +91-80-6142 7139
iyer.aparna@wipro.comAbhishek Kumar Jain
Phone: +91-80-6142 6143
abhishekkumar.jain@wipro.comContact for Media & Press
Purnima Burman
Phone: +91-80-6142 6450
purnima.burman@wipro.com
KEYWORD: NEW YORK UNITED STATES INDIA NORTH AMERICA ASIA PACIFIC
INDUSTRY KEYWORD: TECHNOLOGY CONSULTING SECURITY OTHER TECHNOLOGY PROFESSIONAL SERVICES SOFTWARE NETWORKS INTERNET DATA MANAGEMENT
SOURCE: Wipro Limited
Copyright Business Wire 2022.
PUB: 10/12/2022 10:22 AM/DISC: 10/12/2022 10:22 AM
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