Gross Revenues grew 7% YoY
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today
announced financial results under International Financial Reporting
Standards (IFRS) for its third quarter ended December 31, 2015.
Highlights of the
Results:
- Wipro Limited Gross Revenues were Rs
128.6 billion ($1.9 billion1), an increase of 7% YoY.
- IT Services Segment Non-GAAP constant
currency Revenue in dollar terms grew 1.4% sequentially and grew
6.3% YoY. IT Services Segment Revenue was $1,838.3 million, a
sequential increase of 0.3%.
- IT Services Segment Revenue was Rs
123.1 billion ($1,861 million1), an increase of 9% YoY.
- Net Income2 was Rs 22.3 billion ($338
million1), an increase of 2% YoY.
- IT Services Segment Profit3 was Rs 24.8
billion ($375 million1).
- IT Services Segment Margins was
20.2%.
- Headcount increased by 2,268 to
170,664.
- Wipro declared an interim dividend of
Rs 5 ($0.08) per share /ADS.
Performance for the quarter ended
December 31, 2015T K Kurien, Member of the Board
& Chief Executive Officer of Wipro, said – “We delivered
Revenues in line with our guidance. We saw a pick-up in large deal
closures led by Global Infrastructure Services. It is becoming
increasingly clear that customers want to simplify operations and
optimize their IT spend while investing in Digital to transform
their business. We are well-positioned to take advantage of this
trend.”
Abidali Z. Neemuchwala, Chief Executive Officer-Designate of
Wipro, said – “We are focused on driving market share growth in
our core businesses through integrated domain and technology
services, while investing for the future in building differentiated
Digital capabilities. We will leverage our strong culture of
innovation and extremely talented employee pool to build compelling
value propositions for our customers.”
Jatin Dalal, Chief Financial Officer of Wipro, said –
“During the quarter, we have built competitive differentiation
through the acquisition of two high-potential companies – cellent
and Viteos. The impact on revenues from the Chennai floods were
minimized significantly by strong execution of our robust Business
Continuity Plans (BCP). The additional expenses incurred in
deploying BCP impacted operating margins for the quarter.”
Outlook for the Quarter ending March
31, 2016We expect Revenues from our IT Services
business to be in the range of $ 1,875 million to $1,912
million*.
* Guidance is based on the following exchange rates: GBP/USD at
1.50, Euro/USD at 1.07, AUD/USD at 0.72, USD/INR at 66.13 and
USD/CAD at 1.37
IT ServicesThe IT Services
segment had a headcount of 170,664 as of December 31, 2015. We
added 39 new customers during the quarter.
Effective January 1, 2016, Wipro completed the transaction
announced on December 2, 2015 to acquire cellent AG, a leading IT
consulting and software services company in the DACH region of
Germany, Austria and Switzerland.
On December 23, 2015, Wipro announced that it has signed a
definitive agreement to acquire Viteos Group, a BPaaS provider for
the Alternative Investment Management Industry.
Wipro sustained its momentum in winning Large Deals globally as
described below:
Wipro has entered into a multi-year global infrastructure
support engagement with one of the largest medical devices
companies in the world. Wipro will standardize and simplify the
customer’s IT infrastructure across multiple service lines and in
over 90 countries.
A leading global nutrition, health and wellness company has
selected Wipro to enable the migration of a significant portion of
its global IT applications estate to a hybrid cloud. As part of the
engagement, Wipro will provide IaaS (Infrastructure as a Service),
PaaS (Platform as a Service), an integrated
hardware-software-services stack, and billing-metering-chargeback
in a completely outcome-based model.
A large global retailer has selected Wipro as its quality
engineering partner. Wipro will help develop a new operating and
financial model that will allow the customer to accurately forecast
its quality engineering spends and optimize costs, while driving
continuous improvements in the quality and time-to-market of its
offerings.
Wipro has won a large contract from a European general insurance
multinational for provisioning and managing the company’s
infrastructure.
A leading security solutions manufacturer, headquartered in the
Nordic region, has selected Wipro to transform its IT
infrastructure. As part of the five-year agreement, Wipro will
leverage its Boundaryless Datacenter offering and will consolidate
the customer’s existing data centers and implement a
cloud-based-services model, including IaaS (Infrastructure as a
Service) and PaaS (Platform as a Service).
An Australia-headquartered manufacturing sector customer has
awarded a five-year strategic, IT-as-a-service contract to Wipro.
Wipro will have the end-to-end responsibility of running the
customer’s IT operations and enabling the transformation of the
existing IT estate to a next-generation digital-ready landscape.
The new consumption-based model will enable the customer to be more
agile, reliable and competitive while launching new products and
services.
Digital highlightsOur
Digital capability combining design, engineering and analytics is
seeing traction in the marketplace. Unique capabilities of Designit
combined with Wipro’s technological prowess is driving synergistic
deal wins.
Wipro has been selected to help a global bank establish and
operate its new digital platform, across 50 markets. With global
scale and a blend of strategy, design and engineering capabilities,
Wipro’s agile teams will help support consistent customer
experience, underpinned by continuous delivery across this new
digital platform. Wipro will reinvent the onboarding process for
customers, help improve sales conversion rates and reduce
operational costs.
Wipro has won a multi-year deal from a large bank to enable
omni-channel self-service by digitizing service processes and
leveraging new age digital technologies. This will help the bank
provide superior customer experience while reducing costs, in the
form of lower call volumes.
Wipro will be augmenting the in-house team of a market leader in
the automotive space, with telematics domain skills and advanced
engineering expertise for their telematics program.
Designit has been selected by a leading South American bank to
work on designing an entirely new banking concept and experience,
targeted to create the next-generation banking experience for
customers who are usually not attracted to traditional banking
offerings anymore.
For a major German telecommunications brand, Designit has been
assigned to create future smart Product-Service-Experiences using
artificial intelligence and similar emerging technologies.
For a leading European energy provider, Designit has been
selected to design an innovation process to better facilitate the
company’s investments into technology start-ups and to effectively
drive the integration of acquired start-ups into the client’s own
organizational portfolio.
Cloud highlightsOur Cloud
applications business is seeing a good traction in the market. In
the quarter ending December 31, 2015 we engaged with several
clients to design and deploy their enterprise processes leveraging
industry leading SaaS products. A few marquee engagements include
Cloud CRM processes rationalization for a UK-based gas and utility
major, simplification of lead & opportunity management
processes for a leading US based equipment rental company,
modernization of a B2B order management system for a leading
chemicals supplier company, design and deployment of recruitment
processes for a business process outsourcing enterprise,
implementation of performance and goal management processes for an
American satellite service provider and transforming the
source-to-pay process for an global pharmaceutical and consumer
packaged goods major.
Wipro has also partnered with Apttus, the category-defining
Quote-to-Cash cloud solution provider, to deliver best-in-class
Contract Lifecycle Management (CLM), Configure-Price-Quote (CPQ)
& Revenue Management solutions to clients across
industries.
Awards and accoladesWipro
continued to lead the ‘Global Engineering and R&D Service
Providers (GSPR) Rating 2015’ by Zinnov Management Consulting for
the sixth consecutive year. The Zinnov study evaluated more than 75
R&D service providers across the world in 15 major industry
segments across key parameters like product development
capabilities & innovation, client relationships, human capital,
financials, ecosystem linkages, infrastructure, and business
sustainability.
Wipro has been positioned as a "Leader" by Forrester Research
Inc, in its report ‘The Forrester Wave™: Global Workplace Services,
Q4 2015’. The report cites Wipro’s relative strength in
infrastructure services delivery, well-balanced staff distribution
across EMEA, North America and Asia Pacific, highest overall
customer reference scores of any supplier evaluated in the
analysis, strong customer value proposition, and compelling vision
for workplace services.
Wipro has been positioned as a “Leader” in the IDC MarketScape:
Worldwide Life Science Manufacturing and Supply Chain 2015 vendor
assessment for services in all the 3 service categories of
strategic consulting, ITO and BPO.
Wipro has been recognised as a “Leader” by leading global
analyst firm Everest Group, in the Healthcare Payer Digital IT
Services PEAK Matrix Assessment 2015. This reaffirms our growing
capabilities in the Healthcare Digital space.
Wipro has also been featured as a “Star Performer” in the
Everest Group Healthcare Provider IT Services PEAK Matrix
Assessment 2015. This reflects Wipro’s large scale and deeper
client relationships, technology capability and investments in
tools, platforms, and a global delivery presence in the Healthcare
Provider space.
Wipro has been recognised as a “Leader” in the Gartner Magic
Quadrant for Application Testing Services, Worldwide for the second
consecutive year.
Wipro has been positioned in the 'Winner's Circle' of HfS
Blueprint Report on Trust-as-a-Service 2015. The report covers the
market view of Digital Trust and Security Framework, the Digital
Trust Maturity Scale, and the As-a-Service Economy.
Wipro has won 8 awards at the seventh Annual Golden Bridge
Business and Innovation Awards Ceremony including the Grand Trophy
Award for being the overall winner with maximum impact. Wipro
was recognized for its innovations in API Management and Solutions,
Information Technology (Software), Mobile Innovative Products or
Services, Business Process Management and Application
Development.
IT Products
- Our IT Products Segment delivered
Revenue of Rs 6.5 billion ($98 million1) for the quarter ended
December 31, 2015.
Please refer to the table on page 7 for reconciliation between
IFRS IT Services Revenue and IT Services Revenue on a non-GAAP
constant currency basis.
About Non-GAAP financial measuresThis 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 on page 7 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.
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 December 31, 2015, prepared
under IFRS, along with individual business segment reports, are
available in the Investors section of our website
www.wipro.com.
Quarterly Conference CallWe will hold an earnings
conference call today at 11:00 a.m. Indian Standard Time (12:30
a.m. US Eastern Time) to discuss our performance for the quarter.
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 (NYSE: WIT)Wipro Ltd. (NYSE:WIT) is a
leading information technology, consulting and business process
services company that delivers solutions to enable its clients to
do business better. Wipro delivers winning business outcomes
through its deep industry experience and a 360 degree view of
"Business through Technology.” By combining digital strategy,
customer centric design, advanced analytics and product engineering
approach, Wipro helps its clients create successful and adaptive
businesses. A company recognized globally for its comprehensive
portfolio of services, strong commitment to sustainability and good
corporate citizenship, Wipro has a dedicated workforce of over
160,000, serving clients in 175+ cities across 6 continents.
For more information, please visit www.wipro.com
Forward-looking statementsThe 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, 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 CONDENSED CONSOLIDATED
INTERIM STATEMENT OF FINANCIAL POSITION (Rupees in millions, except
share and per share data, unless otherwise stated)
As of March 31,
As of December 31, 2015
2015 2015
Convenience translation into
US dollar in millions (unaudited) - Refer
footnote 1 on Page 1
ASSETS
Goodwill 68,078 75,361 1,139 Intangible assets 7,931 8,274 125
Property, plant and equipment 54,206 57,360 867 Derivative assets
736 237 4 Available for sale investments 3,867 4,391 66 Non-current
tax assets 11,409 11,551 175 Deferred tax assets 2,945 3,850 58
Other non-current assets 14,369 13,718 207
Total non-current
assets 163,541 174,742 2,641 Inventories 4,849 6,095 92
Trade receivables 91,531 99,959 1,510 Other current assets 73,359
97,751 1,477 Unbilled revenues 42,338 45,662 690 Available for sale
investments 53,908 151,651 2,291 Current tax assets 6,490 8,371 126
Derivative assets 5,077 3,486 53 Cash and cash equivalents 158,940
89,973 1,359
Total current assets 436,492 502,948 7,598
TOTAL ASSETS 600,033 677,690 10,239
EQUITY
Share capital 4,937 4,941 75 Share premium 14,031 14,532 220
Retained earnings 372,248 418,176 6,318 Share based payment reserve
1,312 1,950 29 Other components of equity 15,454 16,968 256 Equity
attributable to the equity holders of the Company 407,982 456,567
6,898 Non-controlling interest 1,646 2,035 31
Total equity
409,628 458,602 6,929
LIABILITIES
Long - term loans and borrowings 12,707 16,427 248 Deferred tax
liabilities 3,240 3,379 51 Derivative liabilities 71 50 1
Non-current tax liabilities 6,695 7,397 112 Other non-current
liabilities 3,658 7,296 110 Provisions 5 15 -
Total non-current
liabilities 26,376 34,564 522 Loans and borrowings and
bank overdrafts 66,206 81,501 1,231 Trade payables and accrued
expenses 58,745 61,918 935 Unearned revenues 16,549 19,122 289
Current tax liabilities 8,036 7,209 109 Derivative liabilities 753
908 14 Other current liabilities 12,223 12,622 191 Provisions 1,517
1,244 19
Total current liabilities 164,029 184,524 2,788
TOTAL LIABILITIES 190,405 219,088 3,310
TOTAL EQUITY AND LIABILITIES 600,033 677,690 10,239
Wipro limited and subsidiaries CONDENSED CONSOLIDATED
INTERIM STATEMENTS OF INCOME (Rupees in millions, except share and
per share data, unless otherwise stated)
Three Months ended December 31,
Nine months ended December 31, 2014
2015 2015 2014 2015
2015
Convenience translation into
US dollar in millions (unaudited)- Refer
footnote 1 on Page 1
Convenience translation into
USdollar in millions(unaudited) - Refer
footnote 1 on Page 1
Gross revenues 119,929 128,605 1,943 348,125 376,116 5,682
Cost of revenues (82,867 ) (90,270 ) (1,364 ) (238,675 ) (260,881 )
(3,941 )
Gross profit 37,062 38,335 579
109,450 115,235 1,741 Selling and
marketing expenses (7,524 ) (8,362 ) (126 ) (22,709 ) (25,114 )
(379 ) General and administrative expenses (6,426 ) (7,010 ) (106 )
(19,217 ) (20,710 ) (313 ) Foreign exchange gains/(losses), net 922
911 14 3,343 2,774 42
Results from operating
activities 24,034 23,874 361 70,867
72,185 1,091 Finance expenses (810 ) (1,423 )
(21 ) (2,687 ) (4,298 ) (65 ) Finance and other income 5,035 6,227
94 14,383 17,663 267
Profit before tax 28,259
28,678 434 82,563 85,550 1,293
Income tax expense (6,228 ) (6,248 ) (95 ) (18,369 )
(18,679 ) (282 )
Profit for the period
22,031 22,430 339
64,194 66,871
1,011 Attributable to: Equity holders of the
company 21,928 22,341 338 63,808 66,572 1,006 Non-controlling
interest 103 89 1 386 299
5
Profit for the period
22,031 22,430 339 64,194 66,871
1,011
Earnings per
equity share: Attributable to equity share holders of the
company Basic 8.92 9.09 0.14 25.97 27.10 0.41 Diluted 8.88 9.07
0.14 25.85 27.05 0.41
Weighted average number of equity shares
used in computing earnings per equity share
Basic 2,457,766,859 2,457,022,905 2,457,022,905 2,457,491,867
2,456,551,992 2,456,551,992 Diluted 2,469,323,243 2,462,220,926
2,462,220,926 2,468,262,835 2,461,282,411 2,461,282,411
Additional Information Segment Revenue IT Services
Business Units BFSI 29,177 32,322 489 85,653 95,595 1,444 HLS
13,247 14,719 222 36,713 41,453 626 RCTG 16,005 19,158 289 45,951
54,650 826 ENU 18,637 17,708 268 53,792 52,949 800 MFG 20,718
22,683 343 59,721 66,769 1,009 GMT 15,661 16,557
250 45,933 47,932
724
IT SERVICES TOTAL 113,445 123,147 1,861 327,763
359,348 5,429 IT PRODUCTS 7,740 6,503 98 24,552 20,119 304
RECONCILING ITEMS (334 ) (134 ) (2 ) (847 ) (577 )
(9 ) TOTAL 120,851 129,516
1,957 351,468 378,890
5,724
Segment Result IT Services Business
Units BFSI 7,035 7,199 109 19,904 21,147 320 HLS 2,981 3,188 48
7,534 8,991 136 RCTG 3,255 3,809 57 9,648 10,211 154 ENU 4,262
3,436 52 13,483 10,745 162 MFG 4,228 4,142 63 12,630 13,270 201 GMT
3,438 3,093 47 10,696 8,928 135 OTHERS - - - 583 - - UNALLOCATED
(458 ) (47 ) (1 ) (1,606 ) 759
11
TOTAL IT SERVICES 24,741 24,820 375 72,872 74,051
1,119 IT PRODUCTS 89 (505 ) (7 ) 316 (574 ) (9 ) RECONCILING ITEMS
(796 ) (441 ) (7 ) (2,321 ) (1,292 )
(19 ) TOTAL 24,034 23,874 361
70,867 72,185 1,091 FINANCE
EXPENSE (810 ) (1,423 ) (22 ) (2,687 ) (4,298 ) (65 ) FINANCE AND
OTHER INCOME 5,035 6,227 94
14,383 17,663 267 PROFIT BEFORE
TAX 28,259 28,678 433 82,563 85,550 1,293 INCOME TAX EXPENSE
(6,228 ) (6,248 ) (94 ) (18,369 ) (18,679 )
(282 )
PROFIT FOR THE PERIOD 22,031
22,430 339 64,194
66,871 1,011
Segment result represents operating profits of the segments and
dividend income and gains or losses (net) relating to strategic
investments, which are presented within “Finance and other income”
in the statement of Income. The Company is organized by the
following operating segments; IT Services and IT Products.
The IT Services segment primarily consists
of IT Service offerings to our customers organized by industry
verticals as follows: Banking, Financial Services and Insurance
(BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer,
Transport and Government (RCTG), Energy, Natural Resources and
Utilities (ENU), Manufacturing (MFG), Global Media and Telecom
(GMT). Starting with quarter ended September 30, 2014, it also
includes Others which comprises dividend income and gains or losses
(net) relating to strategic investments, which are presented within
“Finance and other income” in the statement of Income. Key service
offering to customers includes software application development and
maintenance, research and development services for hardware and
software design, business application services, analytics,
consulting, infrastructure outsourcing services and business
process services.
In the IT Products segment, 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 products,
software licenses and other related deliverables.
Reconciliation of Non-GAAP Constant Currency IT
Services Revenue to IT Services Revenue as per IFRS
($MN) Three Months ended December 31, 2015
Three Months ended December 31, 2015 IT Services Revenue as
per IFRS $ 1,838.3 IT Services Revenue as per IFRS $ 1,838.3 Effect
of Foreign currency exchange movement $ 19.8 Effect
of Foreign currency exchange movement $ 69.9 Non-GAAP
Constant Currency IT Services Revenue based on exchange rates of
previous quarter $ 1,858.1
Non-GAAP Constant Currency IT Services Revenue based
on exchange rates of comparable quarter in the previous year
$ 1,908.2
- For the convenience of the reader, the
amounts in Indian Rupees in this release have been translated into
United States Dollars at the noon buying rate in New York City on
December 31, 2015, for cable transfers in Indian rupees, as
certified by the Federal Reserve Board of New York, which was US
$1= Rs 66.19. However, the realized exchange rate in our IT
Services business segment for the quarter ended December 31, 2015
was US$1= Rs 66.99
- Refers to ‘Profit for the period
attributable to equity holders of the company’
- Refers to Segment Results
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160117005129/en/
WiproInvestor RelationsPavan N Rao, +91-80-4672
6143pavan.rao@wipro.comorAbhishek Kumar Jain, +1 978 826
4700abhishekkumar.jain@wipro.comorMedia & PressVipin
Nair, +91-98450 14036vipin.nair1@wipro.com
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