Gross Revenues grew 10% YoY
IT Services Revenue grew in line with
guidance
Wipro Limited (NYSE:WIT) today announced financial
results under International Financial Reporting Standards (IFRS)
for its first quarter ended June 30, 2015.
Highlights of the Results for the
Quarter ended June 30, 2015:
- Gross Revenues were Rs. 122.4 billion
($1.9 billion1), an increase of 10% YoY.
- Net Income2 was Rs. 21.9 billion ($344
million1), an increase of 4% YoY.
- IT Services Segment Revenue was
$1,794.1 million, a sequential increase of 1.1%
- Non-GAAP constant currency IT Services
Segment Revenue in dollar terms grew 0.2% sequentially and grew
8.1% YoY
- IT Services Segment Revenue in Rupee
terms was Rs. 115.8 billion ($1.8 billion1), an increase of 10%
YoY.
- IT Services Segment Results was Rs.
24.3 billion ($382 million1), an increase of 1% YoY.
- IT Services Segment Margins was 21.0%
for the quarter.
Performance for the quarter ended June
30, 2015
T K Kurien, Member of the Board & Chief Executive Officer
of Wipro, said, “On the Run side, deals are getting
increasingly competitive and we are focused on increasing the
levels of automation, while on the Change side, new stakeholders
are influencing buying decisions in the Digital space. On the Run
side, we continued to win deals which deploy Wipro HOLMESTM, our
Artificial Intelligence platform to drive down costs for our
customers. On the Change side, we have announced the acquisition of
Designit, one of the largest independent global strategic design
firms. Designit’s design capabilities in synergy with Wipro’s scale
in technology services will position Wipro uniquely in Digital, as
an integrated design & technology player.”
Jatin Dalal, Chief Financial Officer of Wipro, said, “We
continued to drive productivity and improve operating levers even
as we invested for growth in people, process and IP. In the
quarter, we maintained strong cash flow generation while operating
margins were, on predictable lines, modestly lower due to employee
compensation measures.”
Outlook for the Quarter ending
September 30, 2015
We expect Revenues from our IT Services business to be in the
range of $1,821 million to $1,857 million*.
* Guidance is based on the following exchange rates: GBP/USD at
1.56, Euro/USD at 1.13, AUD/USD at 0.78, USD/INR at 63.86 and
USD/CAD at 1.22
IT Services
The IT Services segment had a headcount of 161,789 as of June
30, 2015. We added 36 new customers during the quarter.
Wipro continued its momentum in winning Large Deals globally as
described below:
Wipro has been selected by one of the largest upstream oil and
gas companies in Oman as its IT Partner to implement an ‘Integrated
IT Services Contract’. The five-year engagement aims to improve
operational efficiency across the organisation by integrating
managed services for help desk, applications and telecom.
Wipro won a multi-year total outsourcing deal spanning
Applications, Infrastructure and Business Process Services in a
pay-per-use model from one of the largest construction companies
with operations around the world. This engagement will transform
the customer’s technology estate to drive simplification,
scalability, agility and cost optimisation.
Wipro won an IT outsourcing deal from a global leader in
marketing services for Small and Medium Businesses (SMBs). Wipro
will provide applications and infrastructure services to the
customer’s business units in the US, UK and Spain. The deal
includes tools for automation and innovation, all of which are
being offered in an Opex-based commercial model.
Corporation Bank has chosen Wipro to transform its existing core
banking solution. This is a technology transformation initiative
covering core transaction processing, channels across Internet and
Mobile Banking, Risk Based Internal Audit and Enterprise
Performance Management Applications. This project aims at providing
Corporation Bank and its customers with an enhanced uptime and
better response.
Wipro Ventures
During this fiscal year, Wipro made an investment in Talena, an
early-stage company building innovative Big Data Availability
Management Solutions.
Wipro also made an investment in Vicarious, an early-stage
company developing the next-generation of Artificial Intelligence
algorithms and solutions.
Digital highlights
Wipro Digital, the digital business unit of Wipro Limited, on
July 9, 2015, announced its intention to acquire Designit, an
award-winning global strategic design firm specializing in
designing transformative product-service experiences. This
investment marks a further stage in Wipro's move to evolve the
digital offerings it takes to market, combining its reputation and
heritage in deep engineering and transformative technology with
human centered-design methods.
Wipro has been awarded a strategic Application Development and
Management contract by Allied Irish Bank, a leading bank in Ireland
offering a full range of personal and corporate banking services.
Wipro will manage and transform their Digital and Online Channels,
Data and Enterprise support services & Applications estate over
a period of 5 years.
This win builds on recent successes by Wipro Digital, including
selection by a North American bank to redesign and implement a
transformational B2B payment portal as well as working with the
Lawn Tennis Association of the UK as their official Digital
Technology Services Partner.
Awards and accolades
Wipro was been ranked among the top service providers in the
'2015 Nordic IT Outsourcing Study', an annual study on IT
outsourcing and IT service provider performance in the Nordic
region, conducted by Whitelane Research and PA Consulting Group.
Wipro received an overall customer satisfaction score of 80% from
its customers in Sweden, which was significantly higher than the
average score (72%) for other service providers.
Wipro has been rated as a 'High Performer' by leading global
analyst firm HfS Research, in the Population Health and Care
Management (PHM) Business Services for U.S. Healthcare Providers
and Payers, April 2015 Blueprint report.
Everest Group 2015 Workplace PEAK Matrix positions Wipro in the
Leaders’ quadrant based on overall market success and delivery
capabilities. Everest Group also positioned Wipro in the Leaders’
category based on overall market success and delivery capabilities
in its 2015 PEAK Matrix for Banking AO (Application Outsourcing).
Additionally, Wipro has been placed in the Leaders’ quadrant by
Everest Group in its 2015 PEAK Matrix for Mortgage BPO.
IT Products
- Our IT Products Segment delivered
Revenue of Rs. 8.2 billion ($128 million1) for the quarter ended
June 30, 2015, an increase of 7% YoY.
- IT Products Segment Results for the
quarter ended June 30, 2015 was Rs. 139 million ($2 million1).
Please refer the table on page 6 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 on page 6 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 June 30, 2015, 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 07:15 p.m.
Indian Standard Time (09:45 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 Limited (NYSE:WIT) is a leading Information Technology,
Consulting and Business Process Services company that delivers
solutions to enable its clients do business better. Wipro delivers
winning business outcomes through its deep industry experience and
a 360 degree view of "Business through Technology" - helping
clients create successful and adaptive businesses. A company
recognized globally for its comprehensive portfolio of services, a
practitioner's approach to delivering innovation, and an
organization wide commitment to sustainability, Wipro has a
workforce of over 150,000, serving clients in 175+ cities across 6
continents.
For more information, please visit 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, 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 June 30, 2015 2015
2015
Conveniencetranslation into
USdollar in millions(unaudited) -
Referfootnote 1 on Page 1
ASSETS
Goodwill 68,078 69,240 1,089 Intangible assets 7,931 7,983 126
Property, plant and equipment 54,206 55,738 877 Derivative assets
736 271 4 Available for sale investments 3,867 4,013 63 Non-current
tax assets 11,409 11,551 182 Deferred tax assets 2,945 3,636 57
Other non-current assets 14,369 14,179 223
Total non-current
assets 163,541 166,611 2,621 Inventories 4,849 4,736 74
Trade receivables 91,531 91,740 1,443 Other current assets 73,359
69,487 1,093 Unbilled revenues 42,338 46,259 727 Available for sale
investments 53,908 110,585 1,739 Current tax assets 6,490 6,949 109
Derivative assets 5,077 3,250 51 Cash and cash equivalents 158,940
132,937 2,091
Total current assets 436,492 465,943 7,327
TOTAL ASSETS 600,033 632,554 9,948
EQUITY
Share capital 4,937 4,938 78 Share premium 14,031 14,120 222
Retained earnings 372,248 394,177 6,199 Share based payment reserve
1,312 1,688 27 Other components of equity 15,454 14,485 228 Equity
attributable to the equity holders of the Company 407,982 429,408
6,754 Non-controlling interest 1,646 1,827 29
Total equity
409,628 431,235 6,783
LIABILITIES
Long - term loans and borrowings 12,707 12,702 200 Deferred tax
liabilities 3,240 3,186 50 Derivative liabilities 71 41 1
Non-current tax liabilities 6,695 6,269 99 Other non-current
liabilities 3,658 5,441 86 Provisions 5 12 -
Total non-current
liabilities 26,376 27,651 436 Loans and borrowings and
bank overdrafts 66,206 69,082 1,085 Trade payables and accrued
expenses 58,745 63,962 1,006 Unearned revenues 16,549 16,829 265
Current tax liabilities 8,036 8,932 140 Derivative liabilities 753
1,261 20 Other current liabilities 12,223 12,238 192 Provisions
1,517 1,364 21
Total current liabilities 164,029 173,668
2,729
TOTAL LIABILITIES 190,405 201,319 3,165
TOTAL EQUITY AND LIABILITIES 600,033 632,554 9,948
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 June 30, 2014 2015
2015
Conveniencetranslation into
USdollar in millions(unaudited) -
Referfootnote 1 on Page 1
Gross revenues 111,358 122,376 1,923 Cost of revenues
(74,941 ) (84,787 ) (1,333 )
Gross profit 36,417
37,589 590 Selling and marketing expenses
(7,557 ) (8,044 ) (126 ) General and administrative expenses (6,187
) (6,853 ) (108 ) Foreign exchange gains/(losses), net 1,098 1,330
21
Results from operating activities 23,771
24,022 377 Finance expenses (888 ) (1,286 )
(20 ) Finance and other income 4,239 5,242 82
Profit before
tax 27,122 27,978 439 Income tax expense
(5,942 ) (5,945 ) (93 )
Profit for the period 21,180
22,033 346 Attributable
to: Equity holders of the company 21,032 21,877 344 Non-controlling
interest 148 156 2
Profit for the
period 21,180 22,033 346
Earnings per equity share: Attributable to equity share
holders of the company Basic 8.57 8.91 0.14 Diluted 8.54 8.89
0.14 Weighted average number of equity shares used in
computing earnings per equity share Basic 2,455,543,231
2,455,804,709 2,455,804,709 Diluted 2,462,939,809 2,460,584,039
2,460,584,039
Additional Information Segment
Revenue IT Services Business Units BFSI 28,065 31,020
489 HLS 11,290 12,988 204 RCTG 14,727 17,380 273 ENU 16,822 17,577
276 MFG 19,110 21,524 338 GMT 15,069 15,284 240
IT SERVICES TOTAL 105,083 115,773 1,820 IT PRODUCTS
7,660 8,174 128 RECONCILING ITEMS (287 ) (241 ) (4 ) TOTAL 112,456
123,706 1,944
Segment Result
IT Services Business Units BFSI 6,624 7,013 111 HLS 2,131
2,759 43 RCTG 3,188 3,140 49 ENU 4,553 3,812 60 MFG 4,368 4,327 69
GMT 3,762 2,698 42 OTHERS - - UNALLOCATED (623 ) 530 8
TOTAL IT SERVICES 24,003 24,279 382 IT PRODUCTS 165
139 2 RECONCILING ITEMS (397 ) (396 ) (6 ) TOTAL 23,771
24,022 378 FINANCE EXPENSE (888 ) (1,286 ) (20 )
FINANCE AND OTHER INCOME 4,239 5,242 82 PROFIT
BEFORE TAX 27,122 27,978 440 INCOME TAX EXPENSE (5,942 ) (5,945 )
(94 )
PROFIT FOR THE PERIOD 21,180
22,033 346 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 June 30,2015 IT Services Revenue as per
IFRS $ 1,794 IT Services
Revenue as per IFRS $ 1,794 Effect of Foreign
currency exchange movement $ (16 ) Effect of Foreign
currency exchange movement $ 87 Non-GAAP Constant Currency IT
Services Revenue based on previous quarter exchange rates $ 1,778
Non-GAAP Constant Currency IT Services Revenue based on previous
year exchange rates $ 1,881
1. 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 June 30, 2015,
for cable transfers in Indian rupees, as certified by the Federal
Reserve Board of New York, which was US $1= Rs. 63.59. However, the
realized exchange rate in our IT Services business segment for the
quarter ended June 30, 2015 was US$1= Rs. 64.53
2. Refers to ‘Profit for the period attributable to equity
holders of the company’
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150723005862/en/
Wipro LimitedContact for Investor RelationsAravind V S,
+91-80-2505 6186aravind.viswanathan@wipro.comorAbhishek Kumar Jain,
+1 978 826 4700abhishekkumar.jain@wipro.comorContact for Media
& PressVipin Nair,
+91-80-3991-6154vipin.nair1@wipro.com
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