EX-99.1 2 d472669dex991.htm IFRS PRESS RELEASE IFRS Press Release

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter ended December 31, 2012 under IFRS

Wipro Records 18% YoY Growth in Net Income in the quarter

Bangalore, India and East Brunswick, New Jersey, USA – January 18, 2013 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2012.

Highlights of the Results:

Results for the Quarter ended December 31, 2012:

 

   

Total Revenues were LOGO 110.25 billion ($2.01 billion1), an increase of 10% YoY.

 

   

Net Income was LOGO 17.16 billion ($313 million1), an increase of 18% YoY. Non-GAAP Adjusted Net Income was LOGO 17.09 billion ($312 million1), an increase of 17% YoY.

 

   

IT Services Revenue was $1,577 million, a sequential increase of 2.4% and YoY increase of 4.8%.

 

   

Non-GAAP constant currency IT Services Revenue in dollar terms was $1,571 million, within our guidance range of $1,560 million to $1,590 million.

 

   

IT Services Revenues in Rupee terms was LOGO 86.02 billion ($1,568 million1), an increase of 13% YoY.

 

   

IT Services Earnings Before Interest and Tax (EBIT) was LOGO 17.92 billion ($327 million1), an increase of 13% YoY.

 

   

Operating Income to Revenue for IT Services was 20.8% for the quarter, up 0.1% sequentially.

 

   

Wipro declared an interim dividend of LOGO 2 ($0.041) per share /ADS.

Performance for the quarter ended December 31, 2012

Azim Premji, Chairman of Wipro, commenting on the results said – “While the overall mood on economic growth continues to be muted, global corporations continue to leverage technology to drive revenues and productivity.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “We have expanded operating margins sequentially through improvements in revenue productivity and improved cash flow generation through efficient working capital management. We commend and welcome the circular implementing the recommendation of the Rangachary Committee, which has dealt with the tax disputes the industry has been facing over the years.”

T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – “We have seen broad based growth in the quarter with all our verticals growing sequentially. Our improvement in customer and employee engagement is reflected in client mining with 10 customers contributing more than $100 million and lower attrition. We continue to make investments in our go to market organization and technology themes to be a strategic partner to our customers.”

 

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 December 31, 2012, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 54.86. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2012 was US$1= LOGO 54.54


Outlook for the Quarter ending March 31, 2013

We expect Revenues from our IT Services business to be in the range of $1,585 million to $1,625 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.61, Euro/USD at 1.31, AUD/USD at 1.04, USD/INR at 54.65.

IT Services (78% of Total Revenue and 92% of Operating Income for the quarter ended December 31, 2012)

The IT Services segment had 142,905 employees as of December 31, 2012, an increase of 2,336 people in the quarter. We added 50 new customers for the quarter.

Wipro has secured a large R&D Applications and Infrastructure services deal from a Europe-based Telecom Equipment Vendor. IT will be a key enabler in the client’s ongoing business transformation program and this deal was a natural extension of Wipro’s longstanding partnership with the client.

Sears Holdings Corporation, a leading integrated Retailer in the US has extended its agreement with Wipro through a multi-year Business Process Outsourcing contract in the areas of Finance & Accounting, Human Resources and Procurement. Wipro will continue to build on the relationship to deliver results, quality, innovation and flexibility.

Wipro has won a multi-year IT Infrastructure Outsourcing engagement with one of the largest Retailers in Australia. This transformational program, which also involves cloud deployment, will leverage a high degree of automation to improve operational efficiencies. This will help the Retailer improve business agility and enhance the end-user experience.

Wipro has won a multi-year engagement with a large not-for-profit Healthcare Provider in the US to enable the seamless integration of the IT infrastructure of its recently acquired entities. The partnership will help the customer leverage new technologies like cloud, analytics, pervasive computing and mobility to deliver and improve the quality of care.

Wipro has won a deal for a Core Banking Solution implementation across 2,520 branches of Punjab and Sind Bank, a public sector bank in India. Wipro will be providing hardware and software, WAN roll-out, network & security devices, data center and disaster site co-hosting.

Awards and accolades

Wipro was named a Leader in The Forrester Wave™: Business Intelligence (BI) Services Providers, Q4 2012. The report said that Wipro is closing the gap with multinational companies, investing substantially in dedicated local market consulting resources, coupled with significant amounts of industry-specific productized IP and platform BI solutions, giving clients a good mix of process consulting skills backed by leading technology.


Wipro was recognized at the ‘National Centre for Promotion of Employment for Disabled People (NCPEDP)-Shell Helen Keller Awards 2012’, in the category ‘Role Model Organizations’.

Wipro won the Global MAKE (Most Admired Knowledge Enterprises) Award 2012, administered by Teleos, an independent research firm based in the United Kingdom. This was the fifth time that Wipro has been recognized as one of the top global organizations that transforms corporate knowledge into intellectual capital for the enterprise and increases stakeholder wealth by transforming new as well as existing enterprise knowledge into superior products, services or solutions.

Wipro has been selected by Amazon Web Services (AWS) as a ‘Premier Consulting Partner’ for 2013. This title recognizes Wipro as one of the top Consulting Partners in the Amazon Partner Network program, having distinguished itself by investing significantly in its Cloud and AWS practice and providing exceptional customer service.

Wipro topped the ‘Guide to Greener Electronics’ ranking released by Greenpeace International. The guide ranked 16 Electronic companies across the world based on their commitment and progress in three environment criteria: Energy and Climate, Greener Products and Sustainable Operations.

IT Products (9% of Total Revenue and 1% of Operating Income for the quarter ended December 31, 2012)

 

   

Our IT Products segment recorded Revenue of LOGO 9.97 billion ($182 million1) for the quarter, a YoY increase of 11%.

 

   

EBIT was LOGO 239 million ($4 million1) for the quarter.

 

   

Operating Income to Revenue for this segment was 2% for the quarter.

Consumer Care and Lighting (9% of Total Revenue and 7% of Operating Income for the quarter ended December 31, 2012)

 

   

Our Consumer Care and Lighting business segment recorded Revenue of LOGO 10.28 billion ($187 million1) for the quarter, an increase of 17% YoY.

 

   

EBIT was LOGO 1.4 billion ($26 million1) for the quarter, an increase of 34% YoY.

 

   

Operating Income to Revenue for this segment was 14% for the quarter.

 

   

Wipro signed a definitive agreement to acquire 100% shareholding of the L.D. Waxson Group, a Singapore-based Fast Moving Consumer Goods (FMCG) company for an all cash consideration of about USD 144 million.

Wipro Limited

 

   

Total Revenue for the quarter ended December 31, 2012 was LOGO 110.25 billion ($2.01 billion1).

 

   

Net Income for the quarter ended December 31, 2012 was LOGO 17.16 billion ($313 million1).

 

   

Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock based compensation) for the quarter ended December 31, 2012 was LOGO 17.09 billion ($312 million1).

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.

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 quarter ended December 31, 2012, 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 (03:30 a.m. US Eastern Time) and at 6:15 p.m. Indian Standard Time (7:45 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 provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, IT enabled services, 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 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.


Contact for Investor Relations    Contact for Media & Press

Manoj Jaiswal

   Sridhar Ramasubbu    Vipin Nair

Phone: +91-80-25056186

   Phone: +1 408-242-6285    Phone: 91-80-3991-6154

Manoj.Jaiswal@wipro.com

   sridhar.ramasubbu@wipro.com    vipin.nair1@wipro.com

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)


WIPRO LIMITED AND SUBSIDIARIES

AUDITED CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

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

 

     As of March 31,     As of December 31,  
     2012     2012     2012  
                 Convenience
translation
into US$ in
millions
(Unaudited)
 

ASSETS

      

Goodwill

     67,937        74,538        1,359   

Intangible assets

     4,229        4,575        83   

Property, plant and equipment

     58,988        60,571        1,104   

Investment in equity accounted investee

     3,232        3,096        56   

Derivative assets

     3,462        35        1   

Non-current tax assets

     10,287        10,678        195   

Deferred tax assets

     2,597        2,607        48   

Other non-current assets

     11,781        10,182        186   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     162,513        166,282        3,031   
  

 

 

   

 

 

   

 

 

 

Inventories

     10,662        11,321        206   

Trade receivables

     80,328        81,825        1,492   

Other current assets

     25,743        30,893        563   

Unbilled revenues

     30,025        33,400        609   

Available for sale investments

     41,961        87,408        1,593   

Current tax assets

     5,635        10,056        183   

Derivative assets

     1,468        3,818        70   

Cash and cash equivalents

     77,666        69,445        1,266   
  

 

 

   

 

 

   

 

 

 

Total current assets

     273,488        328,166        5,982   
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     436,001        494,448        9,013   
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Share capital

     4,917        4,925        90   

Share premium

     30,457        31,632        577   

Retained earnings

     241,912        279,608        5,097   

Share based payment reserve

     1,976        1,199        22   

Other components of equity

     6,594        12,943        236   

Shares held by controlled trust

     (542     (542     (10
  

 

 

   

 

 

   

 

 

 

Equity attributable to the equity holders of the company

     285,314        329,765        6,011   

Non-controlling Interest

     849        1,165        21   
  

 

 

   

 

 

   

 

 

 

Total equity

     286,163        330,930        6,032   
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Long—term loans and borrowings

     22,510        757        14   

Deferred tax liabilities

     353        430        8   

Derivative liabilities

     307        138        3   

Non-current tax liability

     5,403        5,282        96   

Other non-current liabilities

     3,519        3,953        72   

Provisions

     61        25        —     
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     32,153        10,585        193   
  

 

 

   

 

 

   

 

 

 

Loans and borrowings and bank overdrafts

     36,448        62,276        1,135   

Trade payables and accrued expenses

     47,258        51,683        942   

Unearned revenues

     9,569        10,699        195   

Current tax liabilities

     7,232        12,606        230   

Derivative liabilities

     6,354        3,049        56   

Other current liabilities

     9,703        11,452        209   

Provisions

     1,121        1,168        21   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     117,685        152,933        2,788   
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     149,838        163,518        2,981   
  

 

 

   

 

 

   

 

 

 
      
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

     436,001        494,448        9,013   
  

 

 

   

 

 

   

 

 

 


WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

 

     Three months ended December 31,     Nine months ended December 31,  
     2011     2012     2012     2011     2012     2012  
                 Convenience
translation

into US $ in
millions
(Unaudited)
                Convenience
translation

into US $ in
millions
(Unaudited)
 

Gross revenues

     98,808        109,487        1,996        273,807        320,717        5,846   

Cost of revenues

     (69,704     (75,531     (1,377     (194,704     (221,563     (4,039

Gross profit

     29,104        33,956        619        79,103        99,154        1,807   

Selling and marketing expenses

     (7,459     (9,152     (167     (20,253     (27,057     (493

General and administrative expenses

     (5,570     (6,104     (111     (14,531     (17,955     (327

Foreign exchange gains/(losses), net

     1,164        759        14        2,750        2,626        48   

Results from operating activities

     17,239        19,459        355        47,070        56,768        1,035   

Finance expenses

     (1,017     (516     (9     (3,027     (2,420     (44

Finance and other income

     2,149        3,224        59        6,454        9,149        167   

Share of profits/(losses) of equity accounted investee

     117        (65     (1     326        (203     (4

Profit before tax

     18,488        22,102        405        50,823        63,294        1,154   

Income tax expense

     (3,810     (4,848     (88     (9,748     (13,972     (255
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     14,677        17,254        317        41,075        49,322        899   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

            

Equity holders of the company

     14,564        17,164        313        40,921        49,071        894   

Non-controlling interest

     114        90        2        153        251        5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     14,678        17,254        315        41,075        49,322        899   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

            

Basic

     5.94        7.00        0.13        16.71        20.02        0.36   

Diluted

     5.93        6.98        0.13        16.67        19.97        0.36   

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

            

Basic

     2,449,813,576        2,453,446,461        2,453,446,461        2,449,013,412        2,451,682,112        2,451,682,112   

Diluted

     2,454,941,301        2,457,295,329        2,457,295,329        2,455,414,799        2,456,806,947        2,456,806,947   

Additional Information

            

Segment Revenue

            

IT Services

     76,076        86,018        1,568        208,417        252,893        4,610   

IT Products

     9,000        9,969        182        29,066        28,492        519   

IT Services & Products

     85,077        95,987        1,750        237,483        281,385        5,129   

Consumer Care and Lighting

     8,787        10,281        187        24,334        30,154        550   

Others

     6,109        3,978        73        14,741        11,804        215   

Total

     99,972        110,246        2,010        276,558        323,343        5,894   

Operating Income

            

IT Services

     15,828        17,917        327        43,536        52,665        960   

IT Products

     475        239        4        1,349        722        13   

IT Services & Products

     16,303        18,156        331        44,885        53,387        973   

Consumer Care and Lighting

     1,045        1,402        26        2,822        3,675        67   

Others

     (109     (100     (2     (638     (294     (5

Total

     17,238        19,458        355        47,070        56,768        1,035   

Reconciliation of adjusted Non-GAAP profit to profit as per IFRS

            

Profit for the period attributable to Equity holders of the Company

     14,564        17,164        313        40,921        49,071        894   

Adjustments :

            

Accelerated amortization of stock options that vest in a graded manner

     1        (69     (1     (123     (252     (5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted profit

     14,565        17,095        312        40,798        48,819        889   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

            

IT Services Revenue as per IFRS

     1,577             

Effect of Foreign currency exchange movement

     (6          

Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates

     1,571             

IT Services Revenue as per IFRS

     1,577             

Effect of Foreign currency exchange movement

     3             

Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates

     1,580