Exhibit 99.1
FOR IMMEDIATE RELEASE
Results for the quarter and year ended March 31, 2011 under IFRS
IT Services Revenue cross $5 billion in FY11
Bangalore, India and East Brunswick, New Jersey, USA – April 27, 2011 — Wipro Limited (NYSE: WIT)
today announced financial results under International Financial Reporting Standards (IFRS) for its
fourth quarter and year ended March 31, 2011.
Highlights of the Results:
Results for the Quarter ended March 31, 2011:
| • | IT Services Revenue was $1,400 million, a sequential increase of 4.2% and YoY increase of 20.1%. Non-GAAP constant currency revenue was $1,391 million. | ||
| • | Total Revenues were  83.02 billion ($1.86 billion1), an increase of 18% YoY. |
||
| • | Net Income was 13.75 billion ($309 million1), an increase of 14% YoY. Non-GAAP
Adjusted Net Income was 13.68 billion ($307 million1), an increase of 13% YoY. |
||
| • | IT Services Revenues were 62.89 billion ($1,412 million1), an increase of 20%
YoY. |
||
| • | IT Services Earnings Before Interest and Tax (EBIT) was 13.88 billion ($312
million1), an increase of 9% YoY. |
||
| • | Our Operating Income to Revenue for IT Services was 22.1% for the quarter. | ||
| • | Wipro declares final dividend of 4 ($0.091) per share/ADS, taking the total
dividend declared during the year to 6 ($0.131) per share/ADS. |
Results for the year ended March 31, 2011:
| • | IT Services Revenue was $5,221 million, an increase of 18.9% YoY. | ||
| • | Total Revenues were 310.99 billion ($6.98 billion1), an increase of 15% YoY. |
||
| • | Net Income was 52.98 billion ($1.19 billion1), an increase of 15% YoY.
Non-GAAP Adjusted Net Income was 52.60 billion ($1.18 billion1), an increase of
15% YoY. |
||
| • | IT Services Revenues were 234.85 billion ($5.27 billion1), an increase of 16%
YoY. |
||
| • | IT Services Earnings Before Interest and Tax (EBIT) was 53.41 billion ($1.20
billion1), an increase of 12% YoY. |
||
| • | Our Operating Income to Revenue for IT Services was 22.7% for the year. |
Performance for the quarter and year ended March 31, 2011.
Azim Premji, Chairman of Wipro, commenting on the results said – “We have made good progress
in creating a leaner, simpler and more customer centric organization structure. We believe our
business strategy along with the new structure will deliver industry leading growth.”
| 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 March 31,
2011, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New
York, which was US $1=44.54. However, the realized exchange rate in our IT Services
business segment for the quarter ended March 31, 2011 was US$1=44.91 |
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “The business
environment is positive and we are focusing on growth by directing investments on momentum
verticals. We have announced wage hikes effective June 1, 2011, which would have an impact on the
operating margins.”
T K Kurien, Executive Director & Chief Executive Officer, IT Business, said –
“Our journey of building the new Wipro is based on the foundation of customer focus, domain and
technology leadership directed towards the customer needs and providing enriching career
opportunities for our employees.”
Outlook for the Quarter ending June 30, 2011
We expect Revenues from our IT Services business to be in the range of $1,394 million to $1,422 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.64, Euro/USD at 1.46,
AUD/USD at 1.07, USD/INR at 44.29.
IT Services (76% of Total Revenue and 93% of Operating Income for the year ended March 31,
2011)
IT Services segment had 122,385 employees as of March 31, 2011, an increase of 2,894 people this
quarter and 14,314 people in the year. We added 68 new customers for the quarter and 155 new
customers during the year.
As a testament to our focus on high growth verticals, we signed an agreement to acquire the Global
Oil and Gas Information Technology practice of the Commercial Business Services business unit of
Science Applications International Corporation (SAIC), for an all-cash consideration of
approximately US$150 million, subject to adjustments. This acquisition will further strengthen
Wipro’s leadership position in the Energy, Natural Resources and Utilities Strategic Business Unit
(SBU).
This quarter also saw Wipro signing a strategic agreement with Temenos, the world’s leading
supplier of packaged banking software, to deliver core banking on an Application Service Provider
(ASP) model to European banks. Wipro will provide banks with a solution based on Temenos’
best-selling TEMENOS T24 (T24) core banking solution and charge clients based on a per use or
monthly fee. This offering will address the significant and growing demand for an ASP offering,
from small and medium sized banks, to bundle the license, maintenance, services and infrastructure
costs of a banking application into a predictable monthly fee and achieve a much faster time to
market than if installed on premise.
Wipro has been chosen as the Strategic Partner for Infrastructure Services sustenance and
transformation for a leading European Banking Conglomerate’s Investment Banking division, over a 5
year program.
Continuing the trend in the BFSI sector, a significant player in Lloyds of London
market has engaged Wipro to deliver a Regulatory Compliance Data Warehousing Solution to meet the
upcoming Lloyds 10 day reporting and Solvency II regulations. The scope of the engagement is an
end-to-end solution including process analysis and definition. Wipro will be the sole vendor to
deliver this capability. This engagement provides Wipro with a framework and reference architecture
to offer compliance solutions, which has been an area of focus for Wipro.
Wipro and a leading Pharmacy retailer in USA have entered into a multi-year engagement to provide
application management and testing services.
Page 2
The India and Middle East regions demonstrated strong growth across multiple segments. The
Government vertical led the deal momentum in India with a large turnkey project from Punjab Excise
for automating the taxation system. Wipro won a large deal for Information Storage consolidation
from a leading Space Research organization for a period of three years. The National Informatics
Center (NIC) awarded Wipro a five year contract for supply and maintenance of hardware and software
for the National Animal Disease Reporting System. Two State Service Delivery Gateway (SSDG)
projects from Rajasthan and Tamil Nadu governments were also won by Wipro.
IT Products (12% of Total Revenue and 3% of Operating Income for the year ended March 31, 2011)
| • | Our IT Products segment recorded Revenue of 36.91 billion ($829 million1) for
the year, a decline of 3% YoY. Revenue for the quarter was 9.11 billion ($204
million1), an increase of 2% YoY. |
|
| • | EBIT was 1.61 billion ($36 million1) for the year, a decline of 9% YoY. EBIT
was 332 million ($7.46 million1) for the quarter, an increase of 28% YoY. |
|
| • | The ratio of our Operating Income to Revenue for this segment was 4.4% for the year and 3.6% for the quarter. |
Consumer Care and Lighting (9% of Total Revenue and 6% of Operating Income for the year ended March
31, 2011)
| • | Our Consumer Care and Lighting business segment recorded Revenue of 27.26 billion ($612
million1) for the year, an increase of 21% YoY. Revenues for the quarter was 7.24
billion ($163 million1), an increase of 19% YoY. |
|
| • | EBIT was 3.45 billion ($77 million1) for the year, an increase of 11% YoY. EBIT
was 870 million ($20 million1) for the quarter, an increase of 5% YoY. |
|
| • | Operating Income to Revenue for this segment was 12.7% for the year and 12.0% for the quarter. |
Wipro Limited
| • | Total Revenue for the quarter and year ended March 31, 2011 was 83.02 billion ($1.86
billion1) and 310.99 billion ($6.98 billion1) respectively. |
|
| • | Net Income for the quarter and year ended March 31, 2011 was 13.75 billion ($309
million1)
and 52.98 billion ($1.19 billion1) respectively. |
|
| • | Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock based
compensation) for the quarter and year ended March 31, 2011 was 13.68 billion ($307
million1)
and 52.60 billion ($1.18 billion1) respectively. |
Please see the table on page 7 for a reconciliation between (i) IFRS Net Income and non-GAAP
Adjusted Net Income (excluding the impact of stock-based compensation) and (ii) 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.
Page 3
The table on page 7 provides Adjusted Net Income for the period, which is a non-GAAP measure that
excludes the impact of accelerated amortization in respect of stock options that vest in a graded
manner, and IT Services Revenue on a constant currency basis, which is a non-GAAP 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 consider a stock
option award with a graded vesting schedule to be in substance a single award not multiple stock
option awards and accordingly believe the straight line amortization reflects the economic
substance of the award. 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. We believe that the
presentation of this Non-GAAP Adjusted Net Income, when shown in conjunction with the corresponding
IFRS measure, provides useful information to investors and management regarding financial and
business trends relating to its Net Income for the period
These Non-GAAP financial measures are 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 these non-GAAP measures, 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.
For internal budgeting process, our management also uses financial statements that exclude the
impact of accelerated amortization relating to stock options that vest in a graded manner.
Management of the Company also uses Non-GAAP Adjusted Net Income, in addition to the corresponding
IFRS measure, in reviewing our financial results.
Results for the year ended March 31, 2011, computed under IFRS, along with individual business
segment reports, are available in the Investors section of our website at www.wipro.com.
Quarterly Conference Calls
We will hold a conference call today at 02:00 p.m. Indian Standard Time (04:30 a.m. US Eastern
Time) and at 6:45 p.m. Indian Standard Time (9:15 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 provides comprehensive IT solutions and services, including systems integration, information
systems outsourcing, package implementation, software application development and maintenance, and
research and development services to corporations globally. Wipro Limited is the first PCMM Level 5
and SEI CMM Level 5 certified IT Services company globally. Wipro’s IT Services business was
assessed at Level 5 for CMMI V 1.2 across Offshore and Onsite development centers. Wipro also has a
strong presence in niche market segments of Infrastructure Engineering and Consumer Products &
Lighting. For more information, please visit our websites at www.wipro.com, www.wiprocorporate.com
and www.wipro.in.
| Contact for Investor Relations | Contact for Media & Press | |||
Rajendra Kumar Shreemal
|
Sridhar Ramasubbu | Sachin Mulay | ||
Phone: +91-80-2844-0079
|
Phone: +1 408-242-6285 | Phone: 91-80-2505-6110 | ||
rajendra.shreemal@wipro.com
|
sridhar.ramasubbu@wipro.com | sachin.mulay@wipro.com | ||
Page 4
Forward-looking and Cautionary 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.
# # #
(Tables to follow)
Page 5
WIPRO LIMITED AND SUBSIDIARIES
AUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
( in millions, except share and per share data, unless otherwise stated)
AUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(
in millions, except share and per share data, unless otherwise stated)
| As of March 31, | As of March 31, | |||||||||||
| 2010 | 2011 | 2011 | ||||||||||
| Convenience | ||||||||||||
| translation into | ||||||||||||
| US$ in millions | ||||||||||||
| (Unaudited) | ||||||||||||
ASSETS |
||||||||||||
Goodwill |
53,802 | 54,818 | 1,231 | |||||||||
Intangible assets |
4,011 | 3,551 | 80 | |||||||||
Property, plant and equipment |
53,458 | 55,094 | 1,237 | |||||||||
Investment in equity accounted investee |
2,345 | 2,993 | 67 | |||||||||
Derivative assets |
1,201 | 2,984 | 67 | |||||||||
Non-current tax assets |
3,464 | 9,239 | 207 | |||||||||
Deferred tax assets |
1,686 | 1,467 | 33 | |||||||||
Other non-current assets |
8,784 | 8,983 | 202 | |||||||||
Total non-current assets |
128,751 | 139,129 | 3,124 | |||||||||
Inventories |
7,926 | 9,707 | 218 | |||||||||
Trade receivables |
50,928 | 61,627 | 1,384 | |||||||||
Other current assets |
21,106 | 19,744 | 443 | |||||||||
Unbilled revenues |
16,708 | 24,149 | 542 | |||||||||
Available for sale investments |
30,420 | 49,282 | 1,106 | |||||||||
Current tax assets |
6,596 | 4,955 | 111 | |||||||||
Derivative assets |
2,615 | 1,709 | 38 | |||||||||
Cash and cash equivalents |
64,878 | 61,141 | 1,373 | |||||||||
Total current assets |
201,177 | 232,314 | 5,216 | |||||||||
TOTAL ASSETS |
329,928 | 371,443 | 8,340 | |||||||||
EQUITY |
||||||||||||
Share capital |
2,936 | 4,908 | 110 | |||||||||
Share premium |
29,188 | 30,124 | 676 | |||||||||
Retained earnings |
165,789 | 203,250 | 4,563 | |||||||||
Share based payment reserve |
3,140 | 1,360 | 31 | |||||||||
Other components of equity |
(4,399 | ) | 580 | 13 | ||||||||
Shares held by controlled trust |
(542 | ) | (542 | ) | (12 | ) | ||||||
Equity attributable to the equity holders of the company |
196,112 | 239,680 | 5,381 | |||||||||
Non-controlling Interest |
437 | 691 | 16 | |||||||||
Total equity |
196,549 | 240,371 | 5,397 | |||||||||
LIABILITIES |
||||||||||||
Long — term loans and borrowings |
18,107 | 19,759 | 444 | |||||||||
Deferred tax liabilities |
380 | 301 | 7 | |||||||||
Derivative liabilities |
2,882 | 2,586 | 58 | |||||||||
Non-current tax liability |
3,065 | 5,021 | 113 | |||||||||
Other non-current liabilities |
3,233 | 2,706 | 61 | |||||||||
Provisions |
100 | 81 | 2 | |||||||||
Total non-current liabilities |
27,767 | 30,454 | 684 | |||||||||
Loans and borrowings and bank overdrafts |
44,404 | 33,043 | 742 | |||||||||
Trade payables and accrued expenses |
38,748 | 44,052 | 989 | |||||||||
Unearned revenues |
7,462 | 6,595 | 148 | |||||||||
Current tax liabilities |
4,850 | 7,340 | 165 | |||||||||
Derivative liabilities |
1,375 | 1,358 | 30 | |||||||||
Other current liabilities |
6,499 | 5,906 | 133 | |||||||||
Provisions |
2,274 | 2,324 | 52 | |||||||||
Total current liabilities |
105,612 | 100,618 | 2,259 | |||||||||
TOTAL LIABILITIES |
133,379 | 131,072 | 2,943 | |||||||||
TOTAL EQUITY AND LIABILITIES |
329,928 | 371,443 | 8,340 | |||||||||
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
( in millions, except share and per share data, unless otherwise stated)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(
in millions, except share and per share data, unless otherwise stated)
| Three months ended March 31, | Year ended March 31, | |||||||||||||||||||||||
| 2010 | 2011 | 2011 | 2010 | 2011 | 2011 | |||||||||||||||||||
| Convenience | Convenience | |||||||||||||||||||||||
| translation into | translation into | |||||||||||||||||||||||
| US $ in millions | US $ in millions | |||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||
Gross revenues |
69,772 | 82,715 | 1,857 | 271,957 | 310,542 | 6,972 | ||||||||||||||||||
Cost of revenues |
(47,765 | ) | (57,403 | ) | (1,289 | ) | (186,299 | ) | (212,808 | ) | (4,778 | ) | ||||||||||||
Gross profit |
22,007 | 25,312 | 568 | 85,658 | 97,734 | 2,194 | ||||||||||||||||||
Selling and marketing expenses |
(5,108 | ) | (5,550 | ) | (125 | ) | (18,608 | ) | (22,172 | ) | (498 | ) | ||||||||||||
General and administrative expenses |
(3,593 | ) | (5,284 | ) | (119 | ) | (14,823 | ) | (18,339 | ) | (412 | ) | ||||||||||||
Foreign exchange gains/(losses), net |
389 | 309 | 7 | (383 | ) | 445 | 10 | |||||||||||||||||
Results from operating activities |
13,695 | 14,787 | 332 | 51,844 | 57,668 | 1,295 | ||||||||||||||||||
Finance expenses |
10 | (636 | ) | (14 | ) | (1,324 | ) | (1,933 | ) | (43 | ) | |||||||||||||
Finance and other income |
1,269 | 2,127 | 48 | 4,360 | 6,652 | 149 | ||||||||||||||||||
Share of profits of equity accounted investee |
176 | 139 | 3 | 530 | 648 | 15 | ||||||||||||||||||
Profit before tax |
15,150 | 16,417 | 369 | 55,410 | 63,035 | 1,415 | ||||||||||||||||||
Income tax expense |
(3,015 | ) | (2,604 | ) | (58 | ) | (9,294 | ) | (9,714 | ) | (218 | ) | ||||||||||||
Profit for the period |
12,135 | 13,813 | 310 | 46,116 | 53,321 | 1,197 | ||||||||||||||||||
Attributable to: |
||||||||||||||||||||||||
Equity holders of the company |
12,089 | 13,754 | 309 | 45,931 | 52,977 | 1,189 | ||||||||||||||||||
Non-controlling interest |
46 | 59 | 1 | 185 | 344 | 8 | ||||||||||||||||||
Profit for the period |
12,135 | 13,813 | 310 | 46,116 | 53,321 | 1,197 | ||||||||||||||||||
Earnings per equity share: |
||||||||||||||||||||||||
Basic |
4.97 | 5.64 | 0.13 | 18.91 | 21.74 | 0.49 | ||||||||||||||||||
Diluted |
4.93 | 5.60 | 0.13 | 18.75 | 21.61 | 0.49 | ||||||||||||||||||
Weighted average number of equity shares
used in computing earnings per equity share |
||||||||||||||||||||||||
Basic |
2,431,434,923 | 2,438,996,963 | 2,438,996,963 | 2,429,025,243 | 2,436,440,633 | 2,436,440,633 | ||||||||||||||||||
Diluted |
2,449,711,788 | 2,454,119,878 | 2,454,119,878 | 2,449,658,532 | 2,451,154,154 | 2,451,154,154 | ||||||||||||||||||
Additional Information |
||||||||||||||||||||||||
Segment Revenue |
||||||||||||||||||||||||
IT Services |
52,596 | 62,891 | 1,412 | 202,490 | 234,850 | 5,273 | ||||||||||||||||||
IT Products |
8,900 | 9,105 | 204 | 38,205 | 36,910 | 829 | ||||||||||||||||||
IT Services & Products |
61,496 | 71,996 | 1,616 | 240,695 | 271,760 | 6,101 | ||||||||||||||||||
Consumer Care and Lighting |
6,084 | 7,244 | 163 | 22,584 | 27,258 | 612 | ||||||||||||||||||
Others |
2,581 | 3,784 | 85 | 8,295 | 11,969 | 269 | ||||||||||||||||||
Total |
70,161 | 83,024 | 1,864 | 271,574 | 310,987 | 6,982 | ||||||||||||||||||
Operating Income |
||||||||||||||||||||||||
IT Services |
12,787 | 13,878 | 312 | 47,687 | 53,407 | 1,199 | ||||||||||||||||||
IT Products |
260 | 332 | 7 | 1,764 | 1,609 | 36 | ||||||||||||||||||
IT Services & Products |
13,047 | 14,210 | 319 | 49,451 | 55,016 | 1,235 | ||||||||||||||||||
Consumer Care and Lighting |
830 | 870 | 20 | 3,102 | 3,450 | 77 | ||||||||||||||||||
Others |
(182 | ) | (293 | ) | (7 | ) | (709 | ) | (798 | ) | (18 | ) | ||||||||||||
Total |
13,695 | 14,787 | 332 | 51,844 | 57,668 | 1,295 | ||||||||||||||||||
Reconciliation of adjusted Non-GAAP
profit to profit as per IFRS |
||||||||||||||||||||||||
Profit for the period attributable to Equity
holders of
the Company |
12,089 | 13,754 | 309 | 45,931 | 52,977 | 1,189 | ||||||||||||||||||
Adjustments : |
||||||||||||||||||||||||
Accelerated amortization of stock options
that vest in a graded manner |
32 | (70 | ) | (2 | ) | (69 | ) | (376 | ) | (8 | ) | |||||||||||||
Non-GAAP adjusted profit |
12,121 | 13,684 | 307 | 45,862 | 52,601 | 1,181 | ||||||||||||||||||
Reconciliation of Non-GAAP Constant
Currency IT Services Revenue to IT
Services Revenue as per IFRS ($MN) |
||||||||||||||||||||||||
IT Services Revenue as per IFRS |
1,400 | |||||||||||||||||||||||
Effect of Foreign currency exchange movement |
9 | |||||||||||||||||||||||
Non-GAAP Constant Currency IT Services
Revenue based on previous quarter exchange rates |
1,391 | |||||||||||||||||||||||
IT Services Revenue as per IFRS |
1,400 | |||||||||||||||||||||||
Effect of Foreign currency exchange movement |
24 | |||||||||||||||||||||||
Non-GAAP Constant Currency IT Services
Revenue based
on previous year exchange rates |
1,377 | |||||||||||||||||||||||
