EX-99.1 2 d528782dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter and year ended March 31, 2013 under IFRS

Wipro Records 19% YoY Growth in Net Income for the year

Bangalore, India and East Brunswick, New Jersey, USA – April 19, 2013 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2013.

Highlights of the Results:

Results for the Quarter ended March 31, 2013:

 

 

The Scheme of Arrangement for the demerger of the ‘Diversified Business’ of Wipro, including the Consumer Care and Lighting segment, is effective from March 31, 2013. Our financial statements show the performance of the ‘Diversified Business’ as discontinued operations.

 

 

Total Revenues were LOGO 110.26 billion ($2.02 billion1), an increase of 12% YoY. Revenues for continuing operations were LOGO 96.14 billion ($1.76 billion1), an increase of 13% YoY. Revenues for discontinued operations were LOGO 14.12 billion ($259 million1), an increase of 4% YoY.

 

 

Total Net Income was LOGO 17.29 billion ($317 million1), an increase of 17% YoY. Net Income for continuing operations was LOGO 15.76 billion ($289 million1), an increase of 13% YoY. Net Income for discontinued operations was LOGO 1.53 billion ($28 million1), an increase of 88% YoY.

 

 

Total Non-GAAP Adjusted Net Income was LOGO 17.22 billion ($316 million1), an increase of 16% YoY. Non-GAAP Adjusted Net Income for continuing operations was LOGO 15.69 billion ($288 million1), an increase of 12% YoY. Non-GAAP Adjusted Net Income for discontinued operations was LOGO 1.53 billion ($28 million1), an increase of 88% YoY.

 

 

Non-GAAP constant currency IT Services Revenue in dollar terms was $1,598.6 million, within our guidance range of $1,585 million to $1,625 million.

 

 

IT Services Revenue was $1,585.1 million, a sequential increase of 0.5% and YoY increase of 3.2%.

 

 

IT Services Revenues in Rupee terms was LOGO 85.54 billion ($1,569 million1), an increase of 13% YoY.

 

 

IT Services Earnings Before Interest and Tax (EBIT) was LOGO 17.27 billion ($317 million1), an increase of 10% YoY.

 

 

Operating Income to Revenue for IT Services was 20.2% for the quarter.

 

 

Wipro declares a final dividend of LOGO 5 ($0.091) per share/ADS, taking the total dividend declared during the year to LOGO 7 ($0.131) per share/ADS.

 

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 29, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 54.52. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2013 was US$1= LOGO 53.96


Results for the Year ended March 31, 2013:

 

 

Total Revenues for were LOGO 433.61 billion ($7.95 billion1), an increase of 16% YoY. Revenues for continuing operations were LOGO 376.88 billion ($6.91 billion1), an increase of 17% YoY. Revenues for discontinued operations were LOGO 56.73 billion ($1.04 billion1), an increase of 7% YoY.

 

 

Total Net Income was LOGO 66.36 billion ($1.22 billion1), an increase of 19% YoY. Net Income for continuing operations was LOGO 61.36 billion ($1.13 billion1), an increase of 17% YoY. Net Income for discontinued operations was LOGO 5.0 billion ($92 million1), an increase of 47% YoY.

 

 

Total Non-GAAP Adjusted Net Income was LOGO 66.04 billion ($1.21 billion1), an increase of 19% YoY. Non-GAAP Adjusted Net Income for continuing operations was LOGO 61.05 billion ($1.12 billion1), an increase of 17% YoY. Non-GAAP Adjusted Net Income for discontinued operations was LOGO 5.0 billion ($92 million1), an increase of 47% YoY.

 

 

IT Services Revenue was $6,217.8 million, an increase of 5% YoY. Non GAAP constant currency growth YoY for IT Services was 7.4%.

 

 

IT Services Revenues were LOGO 338.43 billion ($6.21 billion1), an increase of 19% YoY.

 

 

IT Services Earnings Before Interest and Tax (EBIT) was LOGO 69.93 billion ($1.28 billion1), an increase of 18% YoY.

 

 

Our Operating Income to Revenue for IT Services was 20.7% for the year.

Performance for the quarter and year ended March 31, 2013

Azim Premji, Chairman of Wipro, commenting on the results said – “We have completed the demerger of the ‘Diversified Business’ effective March 31, 2013 to make Wipro Limited a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “The cross currencies have been volatile and impacted our financial performance in the quarter. Excluding the impact of foreign exchange, we have been able to maintain margins on a sequential basis. We have shown significant improvements in cash flow generation for the year.”

T K Kurien, Executive Director & Chief Executive Officer, IT Business, said – “We continue to see improvement in our customer satisfaction and employee engagement. Our continued investments in the go-to-market organization positions us well for the future.”

Outlook for the Quarter ending June 30, 2013

We expect Revenues from our IT Services business to be in the range of $1,575 million to $1,610 million*.

 

* Guidance is based on the following exchange rates: GBP/USD at 1.52, Euro/USD at 1.31, AUD/USD at 1.04, USD/INR at 54.14.

IT Services

The IT Services segment had 145,812 employees as of March 31, 2013, an increase of 2,907 people in the quarter. We added 52 new customers for the quarter.

Wipro has secured a contract from a large Europe-based universal bank to build a “Centralized Testing Unit” that will help the bank achieve higher production stability and lower cost of avoidance in its Testing processes. Wipro’s Transformation Services and Data Obfuscation Services along with industry leading testing services will help the bank achieve standardized Testing processes across the organization.


GVK-led Mumbai International Airport Pvt. Ltd. (MIAL), the operator of the Chhatrapati Shivaji International Airport (CSIA) in Mumbai has chosen Wipro to provide world-class IT services for the new integrated terminal “T2”. Wipro will be responsible for providing Managed Services across the entire IT landscape at MIAL and deliver high availability and operational efficiency across all the critical airport processes.

Wipro has won an ERP deal for Asset and Infrastructure Management from a key national defense organization.

Awards and accolades

Wipro was named a “Leader” by technology global research and advisory firm Forrester Research Inc., in its report “The Forrester Wave™: Enterprise Mobility Services, Q1 2013”. Forrester Research Inc. evaluated 13 leading enterprise mobility service providers across 15 criteria, relating to current offering, strategy, and market presence based on interviews with clients. Wipro scored the highest for its breadth of mobile technology skills and competencies, R&D and go-to-market strategy.

Wipro was appraised at Capability Maturity Model Integration CMMI-DEV 1.3 Level 5. This assessment is a validation of Wipro’s process capability based on the CMMI standards that measure process improvements.

Wipro received the ‘NASSCOM Corporate Award for Excellence in Diversity and Inclusion, 2012’, in the category ‘Most Effective Implementation of Practices & Technology for Persons with Disabilities’, at the annual NASSCOM Diversity and Inclusion Summit.

Wipro was named a “Leader” by Verdantix, a leading analyst firm in providing advice to clients in the field of energy, environment and sustainability challenges, in its report “Green Quadrant® Sustainable Technology Services (Global), March 2013”. Verdantix evaluated 16 of the leading sustainable technology service providers globally.

Wipro won the Frost & Sullivan Product Leadership Award (2012) in the Middle East Managed Services Market for its flagship product, FixOmatic Endpoint Automation Product (EAP).

IT Products

 

 

Our IT Products segment recorded Revenue of LOGO 39.24 billion ($720 million1) for the year ended March 31, 2013 an increase of 2% YoY. Revenue for the quarter was LOGO 10.75 billion ($197 million1), an increase of 15% YoY.

 

 

EBIT was LOGO 990 million ($18 million1) for the year, a decrease of 45% YoY. EBIT was LOGO 268 million ($5 million1) for the quarter, a decrease of 39% YoY.

 

 

The ratio of our Operating Income to Revenue for this segment was 2.5% for the year and also for the quarter.

Consumer Care & Lighting (Discontinued Operations)

 

 

Consumer Care & Lighting segment recorded Revenue of LOGO 40.59 billion ($745 million1) for the year ended March 31, 2013 an increase of 22% YoY. Revenue for the quarter was LOGO 10.44 billion ($191 million1), an increase of 15% YoY.

 

 

EBIT was LOGO 5.01 billion ($92 million1) for the year, an increase of 27% YoY. EBIT was LOGO 1.34 billion ($25 million1) for the quarter, an increase of 18% YoY.


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 and year ended March 31, 2013, 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, 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.

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 March 31,  
     2012     2013     2013  
                 Convenience
translation into
US$ in millions
 

ASSETS

      

Goodwill

     67,937        54,756        1,004   

Intangible assets

     4,229        1,714        31   

Property, plant and equipment

     58,988        50,525        927   

Investment properties

     —          —          —     

Investment in equity accounted investee

     3,232        —          —     

Other Investments

     —          4        0   

Derivative assets

     3,462        51        1   

Non-current tax assets

     10,287        10,308        189   

Deferred tax assets

     2,597        4,235        78   

Other non-current assets

     11,781        10,738        197   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     162,513        132,327        2,427   
  

 

 

   

 

 

   

 

 

 

Inventories

     10,662        3,263        60   

Trade receivables

     80,328        76,635        1,406   

Other current assets

     25,743        31,069        570   

Derivative assets

     —            —     

Unbilled revenues

     30,025        31,988        587   

Available for sale investments

     41,961        69,171        1,269   

Derivative asset

     —          —          —     

Current tax assets

     5,635        7,408        136   

Derivative assets

     1,468        3,031        56   

Cash and cash equivalents

     77,666        84,838        1,556   
  

 

 

   

 

 

   

 

 

 

Total current assets

     273,488        307,403        5,638   
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     436,001        439,730        8,065   
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Share capital

     4,917        4,926        90   

Share premium

     30,457        11,760        216   

Retained earnings

     241,912        259,178        4,754   

Share based payment reserve

     1,976        1,316        24   

Other components of equity

     6,594        7,174        132   

Shares held by controlled trust

     (542     (542     (10
  

 

 

   

 

 

   

 

 

 

Equity attributable to the equity holders of the company

     285,314        283,812        5,206   

Non-controlling Interest

     849        1,171        21   
  

 

 

   

 

 

   

 

 

 

Total equity

     286,163        284,983        5,227   
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Long - term loans and borrowings

     22,510        854        16   

Deferred tax liabilities

     353        846        16   

Employee benefit obligations

     —          —          —     

Derivative liabilities

     307        118        2   

Non-current tax liability

     5,403        4,790        88   

Other non-current liabilities

     3,519        3,390        62   

Provisions

     61        9        —     
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     32,153        10,007        184   
  

 

 

   

 

 

   

 

 

 

Loans and borrowings and bank overdrafts

     36,448        62,962        1,155   

Trade payables and accrued expenses

     47,258        48,067        882   

Unearned revenues

     9,569        10,347        190   

Current tax liabilities

     7,232        10,226        188   

Derivative liabilities

     6,354        975        18   

Other current liabilities

     9,703        10,989        202   

Provisions

     1,121        1,174        22   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     117,685        144,740        2,655   
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     149,838        154,747        2,838   
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

     436,001        439,730        8,065   
  

 

 

   

 

 

   

 

 

 


WIPRO LIMITED AND SUBSIDIARIES

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,  
    2012     2013     2013     2012     2013     2013  
                Convenience
translation into
US $ in millions
(Unaudited)
                Convenience
translation into
US $ in millions
(Unaudited)
 

Continuing Operation

           

Gross revenues

    84,547        96,078        1,762        318,747        374,256        6,865   

Cost of revenues

    (59,140     (67,008     (1,229     (225,794     (260,665     (4,781

Gross profit

    25,407        29,070        533        92,953        113,591        2,084   

Selling and marketing expenses

    (4,838     (6,183     (113     (17,953     (24,213     (444

General and administrative expenses

    (5,263     (5,820     (107     (18,416     (22,032     (404

Foreign exchange gains/(losses), net

    521        62        1        3,328        2,626        48   

Results from operating activities

    15,827        17,129        314        59,912        69,972        1,284   

Finance expenses

    (375     (395     (7     (3,371     (2,693     (49

Finance and other income

    2,448        3,077        56        8,982        11,317        208   

Share of profits/(losses) of equity accounted investee

    —          —          —          —          —          —     

Profit before tax

    17,900        19,811        364        65,523        78,596        1,442   

Income tax expense

    (3,804     (3,973     (73     (12,955     (16,912     (310
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period from continuing operation

    14,096        15,838        291        52,568        61,684        1,132   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operation

           

Profit after tax for the period from discontinued operation

    816        1,535        28        3,419        5,012        92   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    14,912        17,373        319        55,987        66,696        1,224   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

           

Equity holders of the company

    14,809        17,287        317        55,730        66,359        1,217   

Non-controlling interest

    103        86        2        257        337        6   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    14,912        17,373        319        55,987        66,696        1,223   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from continuing operations attributable to:

           

Equity holders of the company

    13,996        15,756        289        52,325        61,362        1,126   

Non-controlling interest

    100        82        1        243        322        6   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    14,096        15,838        290        52,568        61,684        1,132   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to equity share holders of the company

           

Basic

    6.04        7.04        0.13        22.75        27.05        0.50   

Diluted.

    6.03        7.02        0.13        22.68        26.98        0.49   

From continuing operations

           

Basic

    5.71        6.42        0.12        21.36        25.01        0.46   

Diluted

    5.70        6.40        0.12        21.29        24.95        0.46   

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

           

Basic

    2,450,584,622        2,455,037,295        2,455,037,295        2,449,777,457        2,453,218,759        2,453,218,759   

Diluted

    2,457,137,406        2,460,940,973        2,460,940,973        2,457,511,538        2,459,184,321        2,459,184,321   

Additional Information

           

Segment Revenue

           

IT Services

    75,897        85,538        1,569        284,313        338,431        6,207   

IT Products

    9,370        10,746        197        38,436        39,238        720   

IT Services & Products

    85,267        96,284        1,766        322,749        377,669        6,927   

Consumer Care and Lighting (Discontinued operation)

    9,067        10,440        191        33,401        40,594        745   

Others (Discontinued operation)

    4,288        3,393        62        18,565        14,785        271   

Reconciling Items

    69        147        3        534        560        10   

Total

    98,691        110,264        2,022        375,249        433,608        7,953   

Operating Income

           

IT Services

    15,731        17,268        317        59,265        69,933        1,283   

IT Products

    438        268        5        1,787        990        18   

IT Services & Products

    16,169        17,536        322        61,052        70,923        1,301   

Consumer Care and Lighting (Discontinued operation)

    1,134        1,337        25        3,956        5,012        92   

Others (Discontinued operation)

    35        (23     —          110        290        5   

Reconciling Items

    (395     (473     (9     (1,105     (1,079     (20

Total

    16,943        18,376        337        64,013        75,146        1,378   

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

           

Profit for the period attributable to Equity holders of the Company (Continuing operations)

    13,996        15,756        289        52,325        61,362        1,126   

Adjustments :

           

Accelerated amortization of stock options that vest in a graded manner

    (3     (68     (1     (121     (308     (6
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted profit (Continuing Operations)

    13,993        15,688        288        52,204        61,054        1,120   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period attributable to Equity holders of the Company (Discontinued operations)

    813        1,531        28        3,405        4,997        92   

Adjustments :

           

Accelerated amortization of stock options that vest in a graded manner

    1        (2     —          (4     (13     (0
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted profit (Discontinued operations)

    814        1,529        28        3,401        4,984        92   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

 

     Q4 FY12-13      FY’13  

IT Services Revenue as per IFRS

     1,585      

Effect of Foreign currency exchange movement

     13      

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

     1,599      

IT Services Revenue as per IFRS

     1,585         6,218   

Effect of Foreign currency exchange movement

     30         139   

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

     1,615         6,357