UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of July 2013
Commission File Number 001-16139
Wipro Limited
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrants name into English)
Karnataka, India
(Jurisdiction of incorporation or organization)
Doddakannelli
Sarjapur Road
Bangalore, Karnataka 560035, India +91-80-2844-0011
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F: Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes ¨ No x
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ¨ No x
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
We hereby furnish the Commission with copies of the following information concerning our public disclosures regarding our results of operations for the quarter ended June 30, 2013. The following information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On July 26, 2013, we announced our results of operations for the three months ended June 30, 2013. We issued a press release announcing our results under IFRS, copy of which is attached to this Form 6-K as Item 99.1.
On July 26, 2013, we held a press conference to announce our results. The presentation made by the registrant at the press conference is attached to this Form 6-K as Item 99.2.
We placed advertisements in certain Indian newspapers concerning our results of operations for the three months ended June 30, 2013 under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Item 99.3.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.
WIPRO LIMITED |
/s/ Suresh C. Senapaty |
Suresh C. Senapaty Executive Director & Chief Financial Officer |
Dated: July 30, 2013
INDEX TO EXHIBITS
Item |
||
99.1. | IFRS Press Release | |
99.2. | Presentation made by the Company at the Press Conference on July 26, 2013 | |
99.3. | Form of Advertisement Placed in Indian Newspapers |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Results for the quarter ended June 30, 2013 under IFRS
Wipro Records 11% YoY Growth in Net Income
Bangalore, India and East Brunswick, New Jersey, USA July 26, 2013 Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2013.
Highlights of the Results:
Results for the Quarter ended June 30, 2013:
| Revenues from continuing operations were
|
| Net Income from continuing operations was
|
| Non-GAAP Adjusted Net Income from continuing operations was
|
| Non-GAAP constant currency IT Services Revenue in dollar terms was $1,604.1 million, within our guidance range of $1,575 million to $1,610 million. |
| IT Services Revenue was $1,588.3 million, a sequential increase of 0.2% and YoY increase of 4.9%. |
| IT Services Revenues in Rupee terms was
|
| IT Services Earnings Before Interest and Tax (EBIT) was
|
| Operating Income to Revenue for IT Services was 20.0% for the quarter. |
Performance for the quarter ended June 30, 2013
Azim Premji, Chairman of Wipro, commenting on the results said We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US.
T K Kurien, Executive Director & Chief Executive Officer of Wipro, said We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organizational agility.
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter.
1. | For the convenience of the reader, the amounts in Indian rupees in this release have been translated into United States dollars at the noon buying rate in New York City
on June 28, 2013, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1=
![]() ![]() |
Outlook for the Quarter ending September 30, 2013
We expect Revenues from our IT Services business to be in the range of $1,620 million to $1,650 million*.
* | Guidance is based on the following exchange rates: GBP/USD at 1.54, Euro/USD at 1.31, AUD/USD at 0.97, USD/INR at 57.24. |
IT Services
The IT Services segment had 147,281 employees as of June 30, 2013, an increase of 1,469 people in the quarter. We added 28 new customers for the quarter.
Wipro has won a multi-year, multi-million dollar contract with an APAC-based telecom service provider, to provide big data based analytics solutions to enable business transformation. Wipro, as the lead system integrator for this engagement, will transform business processes to improve end-customer experience, reduce churn and enhance decision making capabilities of the operator by providing meaningful insights into the consumer.
Wipro has won a major, multi-year deal from a leading provider of analytics solutions to Healthcare, CPG and Retail industries. Wipro will manage their data centers across the US and Europe on a cloud based hosted model, powering a responsive and reliable infrastructure. This backbone will be the harbinger of a data-motive Hadoop environment and the launch of their advanced analytics business.
Wipro has won a large multi-year deal in the infrastructure management space from a large global bank. As a part of the banks overall infrastructure services transformation initiative, Wipro will help the bank improve service levels and take out significant costs by rationalizing its infrastructure landscape. The service will be provided in a managed services model spanning 3 continents and will cover a gamut of services across multiple towers.
Wipro has won a large multi-year engagement with one of UKs largest providers of life and general insurance. This includes the renewal of existing work as well as addition of new scope of work. Wipro will continue to provide application development and maintenance services across all their Life & Pension business platforms and will take it to the next level of maturity by converting these to managed services for application support and outcome based delivery.
Wipro has secured a deal from Saudi Arabian Airlines which includes IT Infrastructure and Application Managed Services, Infrastructure Upgrades and Enhancements, Sharepoint application development as well as strategic transformational consulting engagement.
Awards and accolades
Wipro was recognized by Cisco as the global winner in the Architectural Excellence for Data Center category at the annual Cisco Partner Summit, held at Boston, Massachusetts, for its contribution to the growth of Ciscos Data Center business.
Leading M2M platform and application services provider, Axeda has recognized Wipro as its M2Me SI Partner of the Year at Axeda Connexion, 2013, the M2M event of the year, held at Boston, Massachusetts.
The award is in recognition of Wipros strong vertical application offerings and its innovative solutions on the Axeda platform.
Wipro BPO was again recognized by Gartner, Inc. in the leaders quadrant in the report, Magic Quadrant for Finance and Accounting (F&A) BPO, Global, authored by Cathy Tornbohm and published May 29, 2013. Gartner positioned Wipro in the leaders quadrant based on its ability to execute and completeness of vision. The Magic Quadrant evaluated vendor capabilities in the Comprehensive Finance and Accounting business process outsourcing market among 17 providers.
Wipro was named amongst the top 3 in the 2013 Global Outsourcing 100 list compiled annually by International Association of Outsourcing Professionals® (IAOP®), the global, standard-setting organization and advocate for the outsourcing profession. Placed at number three in the 2013 list, Wipros ranking has moved up by four places from the previous year.
IT Products
| Our IT Products segment recorded Revenue of
|
| EBIT was
|
| Operating Income to Revenue for this segment was 2% for the quarter. |
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 and 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 June 30, 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 Call
We will hold a conference call today at 06:45 p.m. Indian Standard Time (09:15 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 Wipros beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipros control. Such statements include, but are not limited to, statements regarding Wipros 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 companys 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 June 30, | |||||||||||
2013 | 2013 | 2013 | ||||||||||
|
|
Convenience translation into US$ in millions (Unaudited) |
||||||||||
ASSETS |
||||||||||||
Goodwill |
54,756 | 59,396 | 998 | |||||||||
Intangible assets |
1,714 | 1,925 | 32 | |||||||||
Property, plant and equipment |
50,525 | 51,432 | 864 | |||||||||
Derivative assets |
51 | 303 | 5 | |||||||||
Non-current tax assets |
10,308 | 11,061 | 186 | |||||||||
Deferred tax assets |
4,235 | 4,707 | 79 | |||||||||
Other non-current assets |
10,738 | 11,214 | 188 | |||||||||
|
|
|
|
|
|
|||||||
Total non-current assets |
132,327 | 140,038 | 2,352 | |||||||||
|
|
|
|
|
|
|||||||
Inventories |
3,263 | 3,517 | 59 | |||||||||
Trade receivables |
76,635 | 75,058 | 1,261 | |||||||||
Other current assets |
31,069 | 36,388 | 611 | |||||||||
Unbilled revenues |
31,988 | 37,534 | 631 | |||||||||
Available for sale investments |
69,171 | 63,219 | 1,062 | |||||||||
Current tax assets |
7,408 | 8,949 | 150 | |||||||||
Derivative assets |
3,031 | 2,627 | 44 | |||||||||
Cash and cash equivalents |
84,838 | 90,095 | 1,514 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
307,403 | 317,387 | 5,332 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL ASSETS |
439,730 | 457,425 | 7,684 | |||||||||
|
|
|
|
|
|
|||||||
EQUITY |
||||||||||||
Share capital |
4,926 | 4,928 | 83 | |||||||||
Share premium |
11,760 | 12,049 | 202 | |||||||||
Retained earnings |
259,178 | 275,603 | 4,630 | |||||||||
Share based payment reserve |
1,316 | 1,103 | 19 | |||||||||
Other components of equity |
7,174 | 7,630 | 128 | |||||||||
Shares held by controlled trust |
(542 | ) | (542 | ) | (9 | ) | ||||||
|
|
|
|
|
|
|||||||
Equity attributable to the equity holders of the company |
283,812 | 300,771 | 5,054 | |||||||||
Non-controlling Interest |
1,171 | 1,025 | 17 | |||||||||
|
|
|
|
|
|
|||||||
Total equity |
284,983 | 301,796 | 5,071 | |||||||||
|
|
|
|
|
|
|||||||
LIABILITIES |
||||||||||||
Long - term loans and borrowings |
854 | 10,123 | 170 | |||||||||
Deferred tax liabilities |
846 | 854 | 14 | |||||||||
Derivative liabilities |
118 | 892 | 15 | |||||||||
Non-current tax liability |
4,790 | 4,666 | 78 | |||||||||
Other non-current liabilities |
3,390 | 3,289 | 55 | |||||||||
Provisions |
9 | 9 | | |||||||||
|
|
|
|
|
|
|||||||
Total non-current liabilities |
10,007 | 19,833 | 332 | |||||||||
|
|
|
|
|
|
|||||||
Loans and borrowings and bank overdrafts |
62,962 | 43,543 | 732 | |||||||||
Trade payables and accrued expenses |
48,067 | 48,640 | 816 | |||||||||
Unearned revenues |
10,347 | 10,931 | 184 | |||||||||
Current tax liabilities |
10,226 | 12,795 | 215 | |||||||||
Derivative liabilities |
975 | 5,712 | 96 | |||||||||
Other current liabilities |
10,989 | 13,032 | 219 | |||||||||
Provisions |
1,174 | 1,143 | 19 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
144,740 | 135,796 | 2,281 | |||||||||
|
|
|
|
|
|
|||||||
TOTAL LIABILITIES |
154,747 | 155,629 | 2,614 | |||||||||
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
TOTAL EQUITY AND LIABILITIES |
439,730 | 457,425 | 7,684 | |||||||||
|
|
|
|
|
|
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME
(` in millions, except share and per share data, unless otherwise stated)
Three months ended June 30, | ||||||||||||
2012 | 2013 | 2013 | ||||||||||
|
|
Convenience translation into US $ in millions (Unaudited) |
||||||||||
Continuing Operations |
||||||||||||
Gross revenues |
90,827 | 97,294 | 1,635 | |||||||||
Cost of revenues |
(63,696 | ) | (67,217 | ) | (1,129 | ) | ||||||
Gross profit |
27,131 | 30,077 | 506 | |||||||||
Selling and marketing expenses |
(5,772 | ) | (6,860 | ) | (115 | ) | ||||||
General and administrative expenses |
(5,557 | ) | (5,567 | ) | (94 | ) | ||||||
Foreign exchange gains/(losses), net |
1,656 | 52 | 1 | |||||||||
Results from operating activities |
17,458 | 17,702 | 298 | |||||||||
Finance expenses |
(1,292 | ) | (495 | ) | (8 | ) | ||||||
Finance and other income |
2,413 | 3,361 | 56 | |||||||||
Profit before tax |
18,579 | 20,568 | 345 | |||||||||
Income tax expense |
(3,831 | ) | (4,251 | ) | (71 | ) | ||||||
|
|
|
|
|
|
|||||||
Profit for the period from continuing operation |
14,747 | 16,317 | 274 | |||||||||
|
|
|
|
|
|
|||||||
Discontinued operation |
||||||||||||
Profit after tax for the period from discontinued operation |
1,151 | | | |||||||||
|
|
|
|
|
|
|||||||
Profit for the period |
15,898 | 16,317 | 274 | |||||||||
|
|
|
|
|
|
|||||||
Attributable to: |
||||||||||||
Equity holders of the company |
15,802 | 16,233 | 273 | |||||||||
Non-controlling interest |
92 | 84 | 1 | |||||||||
|
|
|
|
|
|
|||||||
Profit for the period |
15,894 | 16,317 | 274 | |||||||||
|
|
|
|
|
|
|||||||
Profit from continuing operations attributable to: |
||||||||||||
Equity holders of the company |
14,656 | 16,233 | 273 | |||||||||
Non-controlling interest |
92 | 84 | 1 | |||||||||
|
|
|
|
|
|
|||||||
14,748 | 16,317 | 274 | ||||||||||
|
|
|
|
|
|
|||||||
Earnings per equity share: |
||||||||||||
Attributable to equity share holders of the company |
||||||||||||
Basic |
6.45 | 6.61 | 0.11 | |||||||||
Diluted |
6.43 | 6.60 | 0.11 | |||||||||
From continuing operations |
||||||||||||
Basic |
5.98 | 6.61 | 0.11 | |||||||||
Diluted |
5.96 | 6.60 | 0.11 | |||||||||
Weighted average number of equity shares used in computing earnings per equity share |
||||||||||||
Basic |
2,451,401,169 | 2,454,805,910 | 2,454,805,910 | |||||||||
Diluted |
2,457,798,864 | 2,461,082,401 | 2,461,082,401 | |||||||||
Additional Information |
||||||||||||
Segment Revenue |
||||||||||||
IT Services |
83,143 | 89,363 | 1,501 | |||||||||
IT Products |
9,533 | 8,166 | 137 | |||||||||
IT Services & Products |
92,676 | 97,529 | 1,639 | |||||||||
Consumer Care and Lighting (Discontinued operation) |
9,798 | | | |||||||||
Others (Discontinued operation) |
3,887 | | | |||||||||
Others |
169 | (183 | ) | (3 | ) | |||||||
Total |
106,530 | 97,346 | 1,636 | |||||||||
Operating Income |
||||||||||||
IT Services |
17,443 | 17,845 | 300 | |||||||||
IT Products |
211 | 131 | 2 | |||||||||
IT Services & Products |
17,654 | 17,976 | 302 | |||||||||
Consumer Care and Lighting (Discontinued operation) |
1,139 | | | |||||||||
Others (Discontinued operation) |
97 | | | |||||||||
Others |
(168 | ) | (274 | ) | (5 | ) | ||||||
Total |
18,722 | 17,702 | 297 | |||||||||
Reconciliation of adjusted Non-GAAP profit to profit as per IFRS |
||||||||||||
Profit for the period attributable to Equity holders of the Company (Continuing operations) |
14,656 | 16,233 | 273 | |||||||||
Adjustments : |
||||||||||||
Accelerated amortization of stock options that vest in a graded manner |
(60 | ) | (3 | ) | | |||||||
|
|
|
|
|
|
|||||||
Non-GAAP adjusted profit (Continuing operations) |
14,596 | 16,230 | 273 | |||||||||
|
|
|
|
|
|
|||||||
Profit for the period attributable to Equity holders of the Company (Discontinued operations) |
1,146 | | | |||||||||
Adjustments : |
||||||||||||
Accelerated amortization of stock options that vest in a graded manner |
1 | | | |||||||||
|
|
|
|
|
|
|||||||
Non-GAAP adjusted profit (Discontinued operations) |
1,147 | | | |||||||||
|
|
|
|
|
|
|||||||
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN) |
||||||||||||
IT Services Revenue as per IFRS |
1,588 | |||||||||||
Effect of Foreign currency exchange movement |
16 | |||||||||||
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates |
1,604 | |||||||||||
IT Services Revenue as per IFRS |
1,588 | |||||||||||
Effect of Foreign currency exchange movement |
17 | |||||||||||
Non-GAAP Constant Currency IT Services Revenue based on previous yea exchange rates |
1,605 |
Exhibit 99.2
Performance of Wipro Limited for Quarter ended June 30, 2013
Suresh Senapaty
Executive Director and Chief Financial Officer July 26, 2013
1 © 2012 WIPRO LTD | WWW.WIPRO.COM
Financial Summary for the Quarter Ended June 30, 2013 (IFRS)
Wipro Limited (Continuing Operations)
Q1 14 (Rs million) Seq Growth. YoY Growth.
Revenues 97,346 1% 5%
PBIT 17,702 3% 1%
Net Income 16,233 3% 11%
1. Overall Revenues grew 5% YoY, while Net Income grew 11% YoY
2. Net Income has grown faster due to growth in Other Income on a YoY basis
Particulars Revenue for the Qtr. (Rs million) YoY Growth for the Qtr. PBIT for the Qtr. (Rs million) YoY Growth for the Qtr.
IT Services 89,363 7% 17,845 2%
IT Products 8,166 -14% 131 -38%
1. IT Services Revenue grew 7% on a YoY basis, with PBIT growth of 2% YoY
2. IT Products impacted by the weaker capex spending in India
2 © 2012 WIPRO LTD | WWW.WIPRO.COM
Highlights for the Quarter
Revenues at $1,588 Mn, a constant currency growth of 1.2% sequentially and 6% on a YoY basis . Impact of cross currency movements was $15.8 million sequentially during the quarter which is 1% of revenues
Operating margins in narrow range - The impact of salary increases, investments in SG&A and decrease in offshore mix has been partially mitigated through currency benefits resulting in margin decline of 0.2%
Voluntary Attrition on a trailing 12 month basis dropped 50 basis points to 13.2% - voluntary attrition on a quarterly annualized basis was 13%
The pricing environment was largely stable during the quarter, and the growth was largely volume led
Annual wage hike effective June 1, 2013 with hikes between ~6-8% offshore and ~2-3% onsite
3 © 2012 WIPRO LTD | WWW.WIPRO.COM
IT Services - Revenue Dynamics for Quarter Ended June 30, 2013
Vertical
1. Energy and Utilities grew 5.0% sequentially on constant currency
2. Finance Solutions grew 1.7% sequentially on constant currency
3. Healthcare, Life sciences and Services declined by -1.7% in constant currency, impacted by the softness in the India business
4. Manufacturing & Hitech was flat sequentially in constant currency, also impacted by the India business
Geographies
1. Americas declined sequentially by -0.6% in constant currency - lot of growth in our large American companies have come through our emerging market geo and hence reported there
2. Emerging markets continued to show strong growth clocking a YoY growth of 19.2% in constant currency
3. India and Middle East grew YoY 9.3% in constant currency
4. Europe grew YoY 8.4% in constant currency
Service Lines
1. Global Infrastructure Services grew 11% YoY
2. Analytics grew 11% YoY
3. BPO grew 10% YoY
4 © 2012 WIPRO LTD | WWW.WIPRO.COM
Industry Segment Reporting
Q1 FY14
Industry Segment
BFSI
MFG
ENU
RCTG
GMT
HLS
Total
INR Rev
23,692
17,029
14,228
13,449
12,198
8,767
89,363
OM
4,790
3,385
3,588
2,548
2,235
1,404
17,845
OM %
20.2%
19.9%
25.2%
19.0%
18.3%
16.0%
20.0%
1. ENU and BFSI are ahead of company average in terms of operating margins
5 © 2012 WIPRO LTD | WWW.WIPRO.COM
Looking ahead
Looking ahead For the quarter ending September 30, 2013
We expect the Revenue from our IT Services business to be in the range $1,620 Mn to $1,650 Mn*
Dec
Jan
Nov
Feb
Oct
Mar
2013-14
Sep
Apr
Aug
May
Jul
Jun
* Guidance is based on the following exchange rates: GBP/USD at 1.54, Euro/USD at 1.31, AUD/USD at 0.97, USD/INR at 57.24.
6 © 2012 WIPRO LTD | WWW.WIPRO.COM
Supplemental Data
Key Operating Metrics of IT Services
7 © 2012 WIPRO LTD | WWW.WIPRO.COM
Key Operating Metrics in IT Services for the Quarter ended June 30, 2013
Particulars
Revenue Composition
Global Media & Telecom
Finance Solutions
Manufacturing & Hitech
Healthcare , Life Sciences & Services
Retail, Consumer Goods & Transportation
Energy, Natural Resources & Utilities
Geography Composition
Americas
Europe
India & Middle East Business
APAC & Other Emerging Markets
People related
Number of employees
Net Additions
Q114
13.6%
26.5%
19.1%
9.8%
15.1%
15.9%
49.7%
29.0%
8.8%
12.5%
147,281
1,469
Q413
13.8%
26.3%
19.3%
10.1%
15.1%
15.4%
50.1%
28.5%
9.4%
12.0%
145,812
2,907
Q113
14.9%
26.4%
19.4%
10.1%
15.0%
14.2%
51.6%
28.1%
8.8%
11.5%
138,552
2,632
8 © 2012 WIPRO LTD | WWW.WIPRO.COM
Thank You
Suresh Senapaty
Executive Director and CFO
suresh.senapaty@wipro.com
9 © 2012 WIPRO LTD | WWW.WIPRO.COM
Exhibit 99.3
10 | 27 | 2013
Wipro Limited
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2013
(in millions, except share and per share data, unless otherwise stated)
Particulars Quarter ended June 30, 2013 March 31, 2013 June 30, 2012* Year ended March 31, 2013
1 Income from operations
a) Net Sales/income from operations (net of excise duty) 97,332 96,131 92,476 376,851
b) Other operating income - - - -
Total income from operations (net) 97,332 96,131 92,476 376,851
2 Expenses
a) Cost of materials consumed 351 1,085 998 3,541
b) Purchase of stock-in-trade 6,418 6,361 7,253 27,235
c) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process (328) 128 (486) (183)
d) Employee compensation 48,328 46,123 43,532 179,627
e) Depreciation and amortisation expense 2,501 2,429 2,454 9,913
f) Sub contracting/technical fees/third party application 10,206 9,573 8,744 36,186
g) Other expenditure 12,154 13,303 12,523 50,560
Total expense 79,630 79,002 75,018 306,879
3 Profit from operations before other income, finance costs and exceptional items (1-2) 17,702 17,129 17,458 69,972
4 Other Income 3,361 3,077 2,413 11,317
5 Profit from ordinary activities before finance costs
and exceptional items (3+4) 21,063 20,206 19,871 81,289
6 Finance Cost 495 395 1,292 2,693
7 Profit from ordinary activities after finance costs but before exceptional items (5-6) 20,568 19,811 18,579 78,596
8 Exceptional items - - - -
9 Profit from ordinary activities before tax (7+8) 20,568 19,811 18,579 78,596
10 Tax expense 4,251 3,973 3,831 16,912
11 Net profit from ordinary activities after tax (9-10) [Continuing Operations] 16,317 15,838 14,748 61,684
12 Profit after tax from discontinued operations - 1,535 1,151 5,012
13 Net profit for the period (11+12) 16,317 17,373 15,899 66,696
14 Share in earnings of associates - - - -
15 Minority interest (84) (86) (97) (337)
16 Net profit after taxes, minority interest and share of profit of associates (13+14+15) 16,233 17,287 15,802 66,359
17 Paid up equity share capital (Face value 2 per share) 4,928 4,926 4,920 4,926
18 Reserves excluding revaluation reserves as per Balance Sheet of previous accounting year 278,886
19 EARNINGS PER SHARE (EPS)
Basic (in ) 6.61 7.04 6.45 27.05
Diluted (in ) 6.60 7.02 6.43 26.98
From continuing operations
Basic (in ) 6.61 6.42 5.98 25.01
Diluted (in ) 6.60 6.40 5.96 24.95
20 Public shareholding (1)
Number of shares 604,568,320 492,294,812 490,101,055 492,294,812
Percentage of holding 25.02% 19.99% 19.92% 19.99%
21 Promoters and promoter group shareholding
a) Pledged/Encumbered
- Number of shares Nil Nil Nil Nil
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) Nil Nil Nil Nil
- Percentage of shares (as a % of the total share capital of the Company) Nil Nil Nil Nil
b) Non-encumbered
- Number of shares (2) 1,812,022,464 1,927,880,883 1,927,880,883 1,927,880,883
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) 100% 100% 100% 100%
- Percentage of shares (as a % of the total share capital of the Company) 74.98% 78.28% 78.37% 78.28%
*Refer Note 10.
(1) Public shareholding as defined under clause 40A of the listing agreement (excludes shares beneficially held by promoters and holders of American Depository Receipt)
(2) Includes 440,557,453 (March 31, 2013: 501,557,453 ; June 30, 2012: 206,030,453) equity shares on which Promoter does not have beneficiary interest.
Status of redressal of Complaints received for the period April 01, 2013 to June 30, 2013
S1. No. Nature of the complaint Nature Opening balance 01.04.2013 Complaints received during the quarter Complaints disposed during the quarter Unresolved
1 Non-Receipt of Securities Complaint - 30 30 -
2 Non-Receipt of Annual Reports Complaint - 9 9 -
3 Correction/Duplicate/ Revalidation of dividend warrants Request - 101 101 -
4 SEBI/Stock Exchange Complaints Complaint - 7 7 -
5 Non Receipt of Dividend warrants Complaint - 65 65 -
TOTAL - 212 212 -
Note: There are certain pending cases relating to disputes over title to shares in which the company has been made a party. However these cases are not material in nature.
1. The condensed consolidated interim financial results of the Company for the quarter ended June 30, 2013 have been approved by the directors of the Company at its meeting held on July 26, 2013. The statutory auditors have expressed an unqualified audit opinion.
2. The above interim financial results have been prepared from the condensed consolidated interim financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB).
3. The condensed consolidated interim financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items which have been measured at fair value as required by relevant IFRS:
a. Derivative financial instruments;
b. Available-for-sale financial assets; and
c. The defined benefit asset is recognised as plan assets, unrecognized past service cost, less the present value of the defined benefit obligation.
4. The condensed consolidated interim financial statements incorporate the financial statements of the Parent Company and entities controlled by the Parent Company (its subsidiaries). Control is achieved where a company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that currently are exercisable are taken into account. All intra-company balances, transactions, income and expenses including unrealized income or expenses are eliminated in full on consolidation.
5. The total revenue from continuing operations represent the aggregate revenue and includes foreign exchange gains / (losses), net and is net of excise duty amounting to 14, 9 and 7 for the quarter ended June 30, 2013, March 31, 2013 and June30, 2012, respectively and 31 for the year ended March 31, 2013.
6. Derivatives
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investments in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investments in foreign operations. The counter party in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material.
The following table presents the aggregate contracted principal amounts of the Companys derivative contracts outstanding:
(in Millions)
As at June 30, 2013 As at March 31, 2013
Designated derivative instruments
Sell $767 $777
£107 £61
¥ - ¥ -
€113 €108
AUD14 AUD9
Interest rate swaps $150 $30
Net investment hedges in foreign operations
Cross-currency swaps Y- ¥24,511
Others $342 $357
€40 €40
Non designated derivative instruments
Sell $858 $1,241
£63 £73
€63 €47
AUD60 AUD60
¥882 ¥ -
SGD8 SGD-
ZAR88 ZAR-
Buy $689 $767
¥ - ¥1,525
Cross currency swaps ¥ - ¥7,000
7. The list of subsidiaries is included in the condensed consolidated financial statements of Wipro Limited and subsidiaries for the quarter ended June 30, 2013, are available on our company website www.wipro.com
8. Segment Information The Company is organised by business, which primarily includes IT Services (comprising of IT Services and BPO Services) and IT Products and Others. Consequent to the demerger of Consumer Care and Lighting, Infrastructure Engineering and other non-IT businesses (collectively, the Diversified Business), the Company has re-organised the IT Services business with the object of making industry practice its focal point for performance evaluation and internal financial reporting and decision making. Consequently, the format for reporting IT services business has been changed to industry segments (Industry practice). Industry segments primarily consist of Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing and Hi-tech (MFG) and Global Media and Telecom (GMT).
The IT Services reportable segment information for the comparative period by industry class of customers is not restated to reflect the above change since the meaningful segregation of the data is impracticable and cost to develop it is excessive. However, as required under IFRS 8, the Company has presented segment information for the current period on both the old basis and new basis of segmentation.
The Chairman of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, Operating Segments. The Chairman of the Company evaluates the segments based on their revenue growth and operating income.
Information on reportable segment on the new basis of segmentation for the three months ended June 30, 2013 is as follows:
IT Services BFSI HLS RCTG ENU MFG GMT Total IT Products Reconciling Items Entity Total
Revenue 23,692 8,767 13,449 14,228 17,029 12,198 89,363 8,166 (183) 97,346
Operating Income 4,790 1,404 2,548 3,588 3,385 2,235 17,950 131 (274) 17,807
Unallocated (105) - - (105)
Operating Income Total 17,845 131 (274) 17,702
Finance expense (495)
Finance and other income 3,361
Profit before tax 20,568
Income tax expense (4,251)
Profit for the period 16,317
Depreciation and amortization 2,501
Information on reportable segments on the old basis of segmentation is given below:
Particulars Quarter ended June 30, 2013* March 31, 2013 June 30, 2012 Year ended March 31, 2013
1. Segment Revenue
- IT Services 89,363 85,538 83,143 338,431
- IT Products 8,166 10,746 9,533 39,238
Total IT Services and Products 97,529 96,284 92,676 377,669
Consumer Care and Lighting (Discontinued operation) - 10,440 9,798 40,594
Others (Discontinued operation) - 3,393 3,887 14,785
Reconciling items (183) 147 169 560
Net Revenues from Operations 97,346 110,264 106,530 433,608
2. Segment Operating Income
- IT Services 17,845 17,268 17,443 69,933
- IT Products 131 268 211 990
Total IT Services and Products 17,976 17,536 17,654 70,923
Consumer Care and Lighting (Discontinued operation) - 1,337 1,139 5,012
Others (Discontinued operation) - (23) 97 290
Reconciling items (274) (472) (168) (1,079)
Total Segment Operating Income 17,702 18,378 18,722 75,146
Finance expense (495) (402) (1,367) (2,822)
Finance and other income 3,361 3,677 2,692 12,827
Share of profits/(losses) of equity accounted investees - 97 (102) (107)
Profit before tax 20,568 21,750 19,945 85,044
Income tax expense (4,251) (4,376) (4,046) (18,349)
Profit for the period 16,317 17,374 15,899 66,695
3. Average Capital Employed
IT Services and Products 162,924 160,535 157,295 157,006
Consumer Care and Lighting (Discontinued operation) - 24,686 23,279 23,434
Others (Discontinued operation) - 11,306 11,736 11,419
Reconciling items 189,206 207,887 164,621 188,134
Total Capital Employed 352,130 404,414 356,931 379,993
4. Return on Capital Employed
IT Services and Products 44% 44% 45% 45%
Consumer Care and Lighting (Discontinued operation) - 22% 20% 21%
Others (Discontinued operation) - -1% 3% 3%
Total 20% 18% 21% 20%
*Opening capital employed is representated net off adjustment of capital employed relating to diversified business.
Reconciliation of the reportable segment revenue and profit before tax:
Three months ended June 30, 2013 March 31, 2013 June 30, 2012 Year ended March 31, 2013
Revenues:
Revenue as per segment reporting - 110,264 106,530 433,608
Less: Foreign exchange (gains) / losses, net included in segment revenue - (27) (1,656) (2,654)
Less: revenues from discontinued operations (note 10) - (14,160) (14,005) (56,706)
Inter-group transactions - 1 42 8
Revenue from continuing operations - 96,078 90,827 374,256
Profit before tax:
Profit before tax as per segment reporting - 21,750 19,945 85,045
Less: profit before tax for discontinued operations (note 10) - (1,938) (1,366) (6,449)
Profit before tax for Continuing operations - 19,811 18,579 78,596
U-L]620UIM#7>
MPUH9-JK+HX-FN-9:K%)/C+D9*22(>WP_71M+B1[*]@$P6'J`C81M<`_QV"]2N<(\6@J-F`W)?G)B
MO'G9>`8"_C499M+F1D<_D2.#)K8AC+X3MV$@V3`!3=R'F7=*(G$MF2"A@^+M
M"O//FUY\;?Y:]5;/L5/%6?=C&YR_%R*4DM:<.-=:&E[[US@].;G'#S:*$N+;
MHDOJ?>6:YO NIC\_<%*
M]._
MIWG^Q^;OJ8ZR].N!SJ7P_4$)/8;C>2MH554S20R:=QK]_P#-,NFHPJS9OD#[
M%<-6*UBVKH3-D'*:IP`!6.:@+&;8U[D/HA\^]%N-.;.S3(]+;+B\>ELP@LC<
M,T1R#$'&5FQ//\;R5C$-H_'Y5W#-SI2D2_*S2<-'"A"]0(<50/L]*8IB@8H@
M8I@`Q3%$!*8HA//J';B@_18SKDOFLLID6X=9.,FT]AF8SY?G7N43JF10F)
M8)E4V9X:U9X_D3Q^QB'I
Z!\Q-\VO
9'DD/C:JWU!?$L;@SNF8K$`Y2JODD[_EFH"E&NW,1X:>O
M+M_96_5G^'8,\SS8ZKR>-%2$@2/Q_:V"HKXEE)F4>@YD'<"LX
MX"BV<+=I``/A*`#7Q7^89^9?0V1FY'F1S_A)2^&9=58,EN+IWF!A
MO:P-259GDSU3(8S*<7C82!8P[V./$M<9AE%X>
HB-`6
O4ZQTKLV^;19N[C95V,,BUX::]+4M4]&M/SF][T5
ME/4(PN20S[0>K'6?<7,AGG47GN,Y'G6+X_B