EX-99.1 2 d553426dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

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Results for the Quarter ended December 31, 2019 under IFRS

IT Services Revenue for the quarter grew by 2.2% QoQ

IT Services Operating Margin at 18.4%

Bangalore, India and East Brunswick, New Jersey, USA – January 14, 2020 - Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its quarter ended December 31, 2019.

Highlights of the Results

Results for the Quarter ended December 31, 2019:

 

 

Gross Revenue was 154.7 billion ($2.2 billion1), an increase of 2.7% YoY

 

 

IT Services Segment Revenue was at $2,094.8 million, a sequential growth of 2.2%

 

 

Non-GAAP2 constant currency IT Services Segment Revenue increased by 1.8% QoQ

 

 

IT Services Operating Margin3 for the quarter was at 18.4%, an increase of 0.3% QoQ

 

 

Net Income for the quarter was 24.6 billion ($344 million1), a decrease of 2.2% YoY

 

 

EPS for the quarter was 4.3 ($0.061) per share and grew 3.2% YoY

 

 

Wipro declared an interim dividend of 1 ($0.0141) per equity share/ADS

Performance for the quarter ended December 31, 2019

Abidali Z. Neemuchwala, CEO and Managing Director said, “We have delivered a good quarter with secular growth across all business units, geographies and practices. We remain focused on deepening our customer relationships, converting our funnel and winning large deals.”

Jatin Dalal, Chief Financial Officer said, “We expanded operating margins by 0.3% aided by a favorable movement in the currency. Further, we generated strong operating cash flows led by disciplined execution at 124% of our Net Income.”

Outlook for the quarter ending March 31, 2020

We expect Revenue from our IT Services business to be in the range of $2,095 million to $2,137 million*. This translates to a sequential growth of 0.0% to 2.0%.

 

*

Outlook is based on the following exchange rates: GBP/USD at 1.30, Euro/USD at 1.11, AUD/USD at 0.68, USD/INR at 71.28 and USD/CAD at 1.32

1.

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 = 71.36, as published by the Federal Reserve Board of Governors on December 31, 2019. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2019 was US$1= 72.09

2.

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

3.

IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials

 

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IT Services

Wipro continued its momentum in winning large deals globally as described below:

 

   

Wipro has secured a multi-year managed IT services contract from a leading airport in the Middle East wherein Wipro will leverage its strong domain expertise, digital transformation & innovation capabilities and integrated service delivery model to transform the airport’s IT operations

 

   

Wipro has won a large strategic deal from a leading European manufacturer of hi-tech components for the automotive industry to consolidate, standardize, and automate their IT operations globally. The engagement will drive operational excellence, enhance user experience and foster innovation. This will be done leveraging the hyper-automation capabilities of Wipro HOLMES, Wipro’s global delivery model and strong domain & digital expertise

 

   

Wipro has been awarded a strategic multi-year cyber governance, cloud and infrastructure services transformation engagement by Olympus, a global medtech company headquartered in Japan

 

   

Wipro has won a multi-year managed services contract from a leading UK-headquartered construction company to run and transform their entire IT operations and enhance user experience

 

   

A multinational food and drink processing conglomerate has awarded its Platform and Cloud Services contract with Wipro to transform their operations and ensure next-generation service readiness

Digital & Cloud Application Services Highlights

We continue to see increasing traction in digital oriented deals as illustrated below:

 

   

Wipro has secured a contract from one of the largest US-based integrated healthcare delivery systems to bolster enterprise security and operations, leveraging Wipro’s Security Intelligence as a Service (SIaaS) managed services

 

   

A US-based healthcare company has awarded Wipro a contract to streamline their enterprise operations and deploy new technologies to enable rapid growth, leveraging Topcoder

 

   

A European start-up has awarded Wipro Digital a multi-year, multi-million-dollar strategic contract to develop and run a new-age payment and loyalty solution for the hospitality, travel and retail industry, leveraging Topcoder

 

   

Wipro has secured a strategic contract from a global supplier of semiconductors and infrastructure software products to accelerate their product development

 

   

A multinational financial services company has awarded Wipro Digital a contract to reimagine and redesign its investment platform

Analyst Accolades and Awards

 

   

Wipro positioned as a Leader in Gartner Magic Quadrant for Application Testing Services, Worldwide, Gunjan Gupta et al., 25 Nov 2019

 

   

Wipro positioned as a Leader in IDC MarketScape Worldwide Business Process Outsourcing for AML and KYC 2019 Vendor Assessment (Doc #US44398519, December 2019)

 

   

Wipro recognized as a Leader and Star Performer by Everest Group in Enterprise Blockchain services PEAK Matrix Assessment 2020

 

   

Wipro recognized as a Leader and Star Performer by Everest Group in Application Transformation Services PEAK Matrix Assessment 2020

 

   

Wipro recognized as a Leader and Star Performer in Everest Group Application and Digital Services in Capital Markets – Services PEAK Matrix Assessment 2020

 

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Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

All product names, logos, and brands are property of their respective owners.

IT Products

 

   

IT Products Segment Revenue for the quarter was 2.6 billion ($36.1 million1).

 

   

IT Products Segment Results for the quarter was a loss of 0.14 billion ($1.96 million1).

India State Run Enterprises (ISRE)

 

   

India SRE Segment Revenue for the quarter was 1.8 billion ($25.9 million1).

 

   

India SRE Segment Results for the quarter was a loss of 0.53 billion ($7.4 million1).

Please refer the table on page 8 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 tables on page 8 provide 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.

 

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Results for the quarter ended December 31, 2019, 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 7:15 p.m. Indian Standard Time (8:45 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=WIPRO2010114.

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 global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 175,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

 

Contact for Investor Relations    Contact for Media & Press
Aparna Iyer    Abhishek Kumar Jain    Vipin Nair
Phone: +91-80-4672 7139    Phone: +91-80-6142 6143    Phone: +91-80-3991 6450
iyer.aparna@wipro.com    abhishekkumar.jain@wipro.com    vipin.nair1@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.

# # #    (Tables to follow)

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

( in millions, except share and per share data, unless otherwise stated)

 

     As at March 31, 2019      As at December 31, 2019  
                   Convenience translation
into US dollar in millions
Refer footnote 1 in page 1
 

ASSETS

        

Goodwill

     116,980        123,706        1,734  

Intangible assets

     13,762        14,632        205  

Property, plant and equipment

     70,601        78,552        1,101  

Right-of-use assets

     —          15,706        220  

Financial assets

        

Derivative assets

     173        —          —    

Investments

     6,916        9,045        127  

Trade receivables

     4,373        4,373        61  

Other financial assets

     5,146        4,790        67  

Investments accounted for using the equity method

     1,235        1,291        18  

Deferred tax assets

     5,604        5,943        83  

Non-current tax assets

     20,603        12,412        174  

Other non-current assets

     15,872        11,652        163  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     261,265        282,102        3,953  
  

 

 

    

 

 

    

 

 

 

Inventories

     3,951        2,063        29  

Financial assets

        

Derivative assets

     4,931        1,352        19  

Investments

     220,716        164,256        2,302  

Cash and cash equivalents

     158,529        186,637        2,615  

Trade receivables

     100,489        100,622        1,410  

Unbilled receivables

     22,880        24,663        346  

Other financial assets

     14,611        9,538        134  

Contract assets

     15,038        14,553        204  

Current tax assets

     7,435        3,459        48  

Other current assets

     23,086        21,999        308  
  

 

 

    

 

 

    

 

 

 
     571,666        529,142        7,415  

Assets held for sale

     240        —          —    
  

 

 

    

 

 

    

 

 

 

Total current assets

     571,906        529,142        7,415  
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     833,171        811,244        11,368  
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     12,068        11,426        160  

Securities premium reserve

     533        1,179        17  

Retained earnings

     534,700        503,167        7,051  

Share-based payment reserve

     2,617        2,203        31  

Other components of equity

     18,198        21,679        304  
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     568,116        539,654        7,563  

Non-controlling interest

     2,637        1,580        22  
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY

     570,753        541,234        7,585  
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Financial liabilities

        

Long - term loans and borrowings

     28,368        22,299        312  

Derivative liabilities

     —          4     

Lease liabilities

     —          10,632        149  

Other financial liabilities

     —          5        —    

Deferred tax liabilities

     3,417        3,522        49  

Non-current tax liabilities

     11,023        11,549        162  

Other non-current liabilities

     5,258        6,152        86  

Provisions

     2        2        —    
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     48,068        54,165        758  
  

 

 

    

 

 

    

 

 

 

Financial liabilities

        

Loans, borrowings and bank overdrafts

     71,099        72,380        1,014  

Derivative liabilities

     1,310        1,573        22  

Trade payables and accrued expenses

     88,304        80,570        1,130  

Lease liabilities

     —          6,389        90  

Other financial liabilities

     644        604        8  

Contract liabilities

     24,768        21,153        296  

Current tax liabilities

     9,541        13,903        195  

Other current liabilities

     18,046        18,749        263  

Provisions

     638        524        7  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     214,350        215,845        3,025  
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     262,418        270,010        3,783  
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     833,171        811,244        11,368  
  

 

 

    

 

 

    

 

 

 

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

( in millions, except share and per share data, unless otherwise stated)

 

    Three months ended December 31,     Nine months ended December 31,  
    2018     2019     2019     2018     2019     2019  
                Convenience
translation into US

dollar in millions
Refer footnote 1 in
page  1
                Convenience
translation into US
dollar in millions
Refer footnote 1 in
page  1
 

Revenues

    150,595       154,705       2,168       435,782       453,122       6,350  

Cost of revenues

    (103,971     (109,673     (1,537     (306,091     (321,952     (4,512
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    46,624       45,032       631       129,691       131,170       1,838  

Selling and marketing expenses

    (11,889     (11,030     (154     (33,516     (32,612     (457

General and administrative expenses

    (6,978     (7,496     (105     (29,282     (22,142     (310

Foreign exchange gains/(losses), net

    911       727       10       2,899       2,176       30  

Other operating income

    —         —         —         2,798       749       10  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Results from operating activities

    28,668       27,233       382       72,590       79,341       1,111  

Finance expenses

    (1,627     (1,844     (26     (4,845     (5,675     (80

Finance and other income

    5,362       5,370       75       15,695       19,174       269  

Share of net profit /(loss) of associates accounted for using the equity method

    7       34       —         (26     16       —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

    32,410       30,793       431       83,414       92,856       1,300  

Income tax expense

    (6,966     (6,164     (86     (18,178     (18,594     (261
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    25,444       24,629       345       65,236       74,262       1,039  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit attributable to:

           

Equity holders of the Company

    25,103       24,558       344       65,198       73,958       1,035  

Non-controlling interest

    341       71       1       38       304       4  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    25,444       24,629       345       65,236       74,262       1,039  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

           

Attributable to equity share holders of the Company

           

Basic

    4.18       4.31       0.06       10.86       12.58       0.18  

Diluted

    4.17       4.30       0.06       10.83       12.55       0.18  

Weighted average number of equity shares used in computing earnings per equity share

           

Basic

    6,006,062,585       5,692,132,118       5,692,132,118       6,006,193,456       5,879,588,157       5,879,588,157  

Diluted

    6,020,671,301       5,703,265,041       5,703,265,041       6,020,140,129       5,892,966,906       5,892,966,906  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Particulars

  Three months ended     Nine months ended     Year ended  
  December 31,
2019
    September 30,
2019
    December 31,
2018
    December 31,
2019
    December 31,
2018
    March 31,
2019
 
    Audited     Audited     Audited     Audited     Audited     Audited  

Revenue

           

IT Services

           

BFSI

    46,612       45,760       45,979       137,767       129,219       175,262  

Health BU

    19,799       18,981       19,241       57,651       55,793       75,081  

CBU

    25,443       23,530       22,875       71,339       65,646       89,313  

ENU

    19,553       18,888       18,996       56,873       54,202       72,830  

TECH

    18,584       19,148       19,104       56,392       58,189       76,591  

MFG

    12,450       11,886       11,981       35,672       34,945       46,496  

COMM

    8,565       8,368       8,480       25,387       24,394       32,680  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

    151,006       146,561       146,656       441,081       422,388       568,253  

IT Products

    2,576       3,233       3,145       8,218       9,553       12,312  

ISRE

    1,847       2,069       1,713       6,059       6,757       8,544  

Reconciling Items

    3       (16     (8     (60     (17     (49
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

    155,432       151,847       151,506       455,298       438,681       589,060  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other operating Income

           

IT Services

    —         50       —         749       2,798       4,344  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other Operating Income

    —         50       —         749       2,798       4,344  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

           

IT Services

           

BFSI

    8,246       8,407       9,095       25,988       24,182       33,831  

Health BU

    3,186       2,863       1,973       8,978       6,698       8,638  

CBU

    4,725       3,952       5,291       12,183       12,112       16,828  

ENU

    3,130       3,084       3,613       8,410       4,294       7,081  

TECH

    3,256       3,624       4,177       10,406       12,885       15,916  

MFG

    2,385       2,439       2,391       6,916       6,065       8,327  

COMM

    1,444       1,044       1,578       4,006       3,411       4,396  

Unallocated

    1,360       1,044       976       3,124       1,981       3,142  

Other Operating Income

    —         50       —         749       2,798       4,344  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

    27,732       26,507       29,094       80,760       74,426       102,503  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT Products

    (140     149       212       (398     (954     (1,047

ISRE

    (528     (177     (686     (1,341     (1,054     (1,829

Reconciling Items

    169       256       48       320       172       283  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    27,233       26,735       28,668       79,341       72,590       99,910  

Finance Expense

    (1,844     (2,247     (1,627     (5,675     (4,845     (7,375

Finance and Other Income

    5,370       6,857       5,362       19,174       15,695       22,923  

Share of net profit/ (loss) of associates accounted for using the equity method

    34       (2     7       16       (26     (43
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

    30,793       31,343       32,410       92,856       83,414       115,415  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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LOGO

 

The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals.

The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings 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.

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 Government of India and/ or any State Governments

Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)

 

Three Months ended December 31, 2019       

IT Services Revenue as per IFRS

   $ 2,094.8  

Effect of Foreign currency exchange movement

   $ (9.1
  

 

 

 

Non-GAAP Constant Currency IT Services Revenue based on

   $ 2,085.7  

previous quarter exchange rates

  

 

Three Months ended December 31, 2019       

IT Services Revenue as per IFRS

   $ 2,094.8  

Effect of Foreign currency exchange movement

   $ 8.4  
  

 

 

 

Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year

   $ 2,103.2  

 

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