EX-99.1 2 d713627dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter and year ended March 31, 2014 under IFRS

Net Income Grew 41% YoY in the quarter

IT Services Operating Margin Expanded by 150 basis points sequentially

IT Services Revenues Grew 24% YoY in the quarter; IT Services EBIT Grew 51% YoY in the quarter

Bangalore, India and East Brunswick, New Jersey, USA – April 17, 2014 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2014.

Highlights of the Results:

Results for the Quarter ended March 31, 2014:

 

    Revenues from continuing operations were LOGO 117.0 billion ($2.0 billion1), an increase of 22% YoY.

 

    Net Income from continuing operations was LOGO 22.3 billion ($371 million1), an increase of 41% YoY.

 

    Non-GAAP Adjusted Net Income from continuing operations was LOGO 22.3 billion ($371 million1), an increase of 42% YoY.

 

    IT Services Revenue was $1,720.2 million, a sequential increase of 2.5% and YoY increase of 8.5%.

 

    IT Services2 Revenues in Rupee terms was LOGO 106.2 billion ($1.8 billion1), an increase of 24% YoY.

 

    IT Services2 Earnings Before Interest and Tax (EBIT) was LOGO 26.1 billion ($434 million1), an increase of 51% YoY.

 

    IT Services2 Operating Margins was 24.5%, an expansion of 150 basis points sequentially.

Results for the Year ended March 31, 2014:

 

    Revenues from continuing operations were LOGO 437.6 billion ($7.3 billion1), an increase of 16% YoY.

 

    Net Income from continuing operations was LOGO 78.0 billion ($1.3 billion1), an increase of 27% YoY.

 

    Non-GAAP Adjusted Net Income from continuing operations was LOGO 78.0 billion ($1.3 billion1), an increase of 28% YoY.

 

    IT Services Revenue was $6,617.9 million, YoY increase of 6.4%.

 

    IT Services2 Revenues in Rupee terms was LOGO 399.5 billion ($6.7 billion1), an increase of 18% YoY.

 

    IT Services2 Earnings Before Interest and Tax (EBIT) was LOGO 90.3 billion ($1.5 billion1), an increase of 29% YoY.

 

    IT Services2 Operating Margins was 22.6% for the year an expansion of 195 basis points YoY.

 

    Wipro declared a final dividend of LOGO 5 ($0.08) per share /ADS, taking the total dividend declared during the year to LOGO 8 ($0.13) 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 31, 2014, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 60.00. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2014 was US$1= LOGO 61.73

 

2. For additional information on revenue and operating income by reportable segment on the new basis of segmentation, please see the financial statements


Performance for the quarter and year ended March 31, 2014

Azim Premji, Chairman of Wipro, commenting on the results said, “The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.”

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, “Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT Services operating margins by 195 basis points.”

Outlook for the Quarter ending June 30, 2014

We expect Revenues from our IT Services business to be in the range of $ 1,715 million to $ 1,755 million*.

 

* Guidance is based on the following exchange rates: GBP/USD at 1.66, Euro/USD at 1.37, AUD/USD at 0.90, USD/INR at 61.62

IT Services

The IT Services segment had 146,053 employees as of March 31, 2014. We added 59 new customers for the quarter.

Wipro has won a five-year infrastructure managed services contract with a Fortune 500 global leader in specialty chemicals. This strategic engagement leverages Wipro’s global network of data centers, delivery center footprint, automation capabilities and extensive experience in infrastructure and technology transformation. Wipro will incorporate ServiceNXT, its next-generation integrated managed services framework for this contract as well as leverage its strategic technology alliances in the industry.

Wipro has won a seven-year engagement with Xoserve, an organization which is an integral part of the restructured gas distribution market in Britain. The contract will involve replacement of Xoserve’s two-decade old legacy platform with best-in-class enterprise applications and more contemporary technologies, which will enable Xoserve to better meet the expected demand growth generated by the roll-out of smart meters in the United Kingdom.

A large global bank has selected Wipro as a strategic partner to provide quality assurance and automation services. As part of this multi-year contract, services that are currently managed by multiple incumbent vendors will transition to Wipro. Wipro will also help establish a ‘Target Operating Model’ for software testing as well as provide functional and non-functional testing and automation services for the bank.

A leading apparel and footwear company has renewed its multi-year engagement with Wipro, for application support services in a managed services model. The services provided by Wipro will enhance the stability, resilience and reduce the total cost of ownership for the customer’s organization-wide application landscape, which spans across several global brands and functions such as finance, supply chain, warehouse management and retail.


Wipro has won a deal from a multinational telecommunications company to manage IT and Network operations for their “Enterprise Business” in India. The scope of work includes design, build, feasibility, network operations and field support.

Wipro has won a large deal in the Basel II Risk & Compliance domain from a large state owned bank in India. The contract will provide Enterprise Risk Management for the Bank and its subsidiaries and will include the implementation of software, hardware, infrastructure management, and application sustenance.

Awards and accolades

Wipro was named ‘Leader’ in Worldwide Life Science Manufacturing and Supply Chain ITO by technology global research and advisory firm International Data Corporation (IDC) in its report IDC MarketScape: Worldwide Life Science Manufacturing and Supply Chain ITO 2013 Vendor Assessment, Doc #HI244265, November 2013. IDC evaluated leading Life Science Manufacturing and Supply Chain ITO Services providers across 24 criteria relating to current offering, strategy and market presence based on client inquiries, user needs assessments, and vendor and expert interviews.

IT Products

 

    Our IT Products segment delivered Revenue of LOGO 11.1 billion ($185 million1) for the quarter ended March 31, 2014, a YoY increase of 3%. Revenue for the year end March 31, 2014 was LOGO 38.8 billion ($646 million1), a decrease of 1% YoY.

 

    Earnings Before Interest and Tax (EBIT) for the quarter ended March 31, 2014 was LOGO 143 million ($2 million1), a decrease of 47% YoY. EBIT for the year ended March 31, 2014 was LOGO 310 million ($5 million1). a decrease of 69% YoY. The operating income of IT Products segment for the year includes non-recurring expense of LOGO 209 million ($3 million1) incurred due to cessation of manufacturing of Wipro branded desktops, laptops and servers. Operating income of the IT Products segment excluding the above non-recurring expense is LOGO 519 million ($9 million1).

Please see the table on page 8 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 8 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 and year ended March 31, 2014, 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  
Aravind V S    Sridhar Ramasubbu      Vipin Nair  
Phone: +91-80-25056186    Phone: +1 408-242-6285      Phone: 91-80-3991-6154  
aravind.viswanathan@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,  
     2013     2014     2014  

ASSETS

      

Goodwill

     54,756        63,422        1,057   

Intangible assets

     1,714        1,936        32   

Property, plant and equipment

     50,525        51,449        857   

Derivative assets

     51        286        5   

Available for sale investments

     —          2,676        45   

Non-current tax assets

     10,308        10,192        170   

Deferred tax assets

     4,235        3,362        56   

Other non-current assets

     10,738        14,295        238   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     132,327        147,618        2,460   
  

 

 

   

 

 

   

 

 

 

Inventories

     3,263        2,293        38   

Trade receivables

     76,635        85,392        1,423   

Other current assets

     31,069        39,474        658   

Unbilled revenues

     31,988        39,334        656   

Available for sale investments

     69,171        60,557        1,009   

Current tax assets

     7,408        9,774        163   

Derivative assets

     3,031        3,661        61   

Cash and cash equivalents

     84,838        114,201        1,903   
  

 

 

   

 

 

   

 

 

 

Total current assets

     307,403        354,686        5,911   
  

 

 

   

 

 

   

 

 

 

TOTAL ASSETS

     439,730        502,304        8,371   
  

 

 

   

 

 

   

 

 

 

EQUITY

      

Share capital

     4,926        4,932        82   

Share premium

     11,760        12,664        211   

Retained earnings

     259,178        314,952        5,249   

Share based payment reserve

     1,316        1,021        17   

Other components of equity

     7,174        10,472        175   

Shares held by controlled trust

     (542     (542     (9
  

 

 

   

 

 

   

 

 

 

Equity attributable to the equity holders of the company

     283,812        343,499        5,725   

Non-controlling Interest

     1,171        1,387        23   
  

 

 

   

 

 

   

 

 

 

Total equity

     284,983        344,886        5,748   
  

 

 

   

 

 

   

 

 

 

LIABILITIES

      

Long - term loans and borrowings

     854        10,909        182   

Deferred tax liabilities

     846        1,796        30   

Derivative liabilities

     118        629        10   

Non-current tax liability

     4,790        3,448        57   

Other non-current liabilities

     3,390        4,174        70   

Provisions

     9        6        —     
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     10,007        20,962        349   
  

 

 

   

 

 

   

 

 

 

Loans and borrowings and bank overdrafts

     62,962        40,683        678   

Trade payables and accrued expenses

     48,067        52,256        871   

Unearned revenues

     10,347        12,767        213   

Current tax liabilities

     10,226        12,482        208   

Derivative liabilities

     975        2,504        42   

Other current liabilities

     10,989        14,394        240   

Provisions

     1,174        1,370        23   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     144,740        136,456        2,274   
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     154,747        157,418        2,623   
  

 

 

   

 

 

   

 

 

 
      
  

 

 

   

 

 

   

 

 

 

TOTAL EQUITY AND LIABILITIES

     439,730        502,304        8,371   
  

 

 

   

 

 

   

 

 

 


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 March 31,     Year ended March 31,  
    2013     2014     2014     2013     2014     2014  
                Convenience
translation into
US $ in millions
(Unaudited)
                Convenience
translation into
US $ in millions
(Unaudited)
 

Continuing Operations

           

Gross revenues

    96,078        116,535        1,942        374,256        434,269        7,238   

Cost of revenues

    (67,008     (77,700     (1,295     (260,665     (295,488     (4,925

Gross profit

    29,070        38,835        647        113,591        138,781        2,313   

Selling and marketing expenses

    (6,183     (7,025     (117     (24,213     (29,248     (487

General and administrative expenses

    (5,820     (6,510     (108     (22,032     (23,538     (392

Foreign exchange gains/(losses), net

    62        510        8        2,626        3,359        56   

Results from operating activities

    17,129        25,810        430        69,972        89,354        1,490   

Finance expenses

    (395     (842     (14     (2,693     (2,891     (48

Finance and other income

    3,077        3,959        66        11,317        14,542        242   

Profit before tax

    19,811        28,927        482        78,596        101,005        1,684   

Income tax expense

    (3,973     (6,536     (109     (16,912     (22,600     (377
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period from continuing operation

    15,838        22,391        373        61,684        78,405        1,307   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operation

           

Profit after tax for the period from discontinued operation

    1,535        —          —          5,012        —          —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    17,373        22,391        373        66,696        78,405        1,307   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

           

Equity holders of the company

    17,287        22,265        371        66,359        77,967        1,300   

Non-controlling interest

    86        126        2        337        438        7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

    17,373        22,391        373        66,696        78,405        1,307   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit from continuing operations attributable to:

           

Equity holders of the company

    15,756        22,265        371        61,362        77,967        1,300   

Non-controlling interest

    82        126        2        322        438        7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    15,838        22,391        373        61,684        78,405        1,307   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

           

Attributable to equity share holders of the company

           

Basic

    7.04        9.07        0.15        27.05        31.76        0.53   

Diluted

    7.02        9.04        0.15        26.98        31.66        0.53   

From continuing operations

           

Basic

    6.42        9.07        0.15        25.01        31.76        0.53   

Diluted

    6.40        9.04        0.15        24.95        31.66        0.53   

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

           

Basic

    2,455,037,295        2,455,543,231        2,455,543,231        2,453,218,759        2,454,745,434        2,454,745,434   

Diluted

    2,460,940,973        2,462,876,367        2,462,876,367        2,459,184,321        2,462,626,739        2,462,626,739   

Additional Information

           

Segment Revenue

           

IT Services

    85,538        106,193        1,770        338,431        399,509        6,658   

IT Products

    10,746        11,090        185        39,238        38,785        646   

IT Services & Products

    96,284        117,283        1,955        377,669        438,294        7,305   

Consumer Care and Lighting (Discontinued operation)

    10,440        —          —          40,594        —          —     

Others (Discontinued operation)

    3,393        —          —          14,785        —          —     

Others

    147        (238     (4     560        (666     (11

Total

    110,264        117,045        1,951        433,608        437,628        7,294   

Operating Income

           

IT Services

    17,268        26,054        434        69,933        90,333        1,506   

IT Products

    268        143        2        990        310        5   

IT Services & Products

    17,536        26,197        436        70,923        90,643        1,511   

Consumer Care and Lighting (Discontinued operation)

    1,337        —          —          5,012        —          —     

Others (Discontinued operation)

    (23     —          —          290        —          —     

Others

    (473     (387     (6     (1,079     (1,289     (21

Total

    18,376        25,810        430        75,146        89,354        1,490   


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 March 31,      Year ended March 31,  
     2013     2014      2014      2013     2014     2014  
                  Convenience
translation into
US $ in millions
(Unaudited)
                 Convenience
translation into
US $ in millions
(Unaudited)
 

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

              

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

     15,756        22,265         371         61,362        77,967        1,300   

Adjustments :

              

Accelerated amortization of stock options that vest in a graded manner

     (68     1         —           (308     (3     (0
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted profit (Continuing operations)

     15,687        22,266         371         61,054        77,963        1,300   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

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

     1,531        —           —           4,997        (0     (0

Adjustments :

              

Accelerated amortization of stock options that vest in a graded manner

     (1     —           —           (12     —          —     
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP adjusted profit (Discontinued operations)

     1,530        —           —           4,984        (0     (0
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

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

              

IT Services Revenue as per IFRS

     1,720.2               

Effect of Foreign currency exchange movement

     2.8               

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

     1,717.4               

IT Services Revenue as per IFRS

     1,720.2               

Effect of Foreign currency exchange movement

     11.8               

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

     1,732.0               

Segment Revenue and Operating Income as per new basis of segmentation

 

     Three months ended March 31, 2014     Year ended March 31, 2014  

SEGMENT

   Revenue     Operating Income     Revenue     Operating Income  

BFSI

     28,468        7,005        106,035        24,153   

HLS

     11,275        2,482        41,130        7,637   

RCTG

     15,412        4,048        58,893        13,012   

ENU

     17,173        4,887        63,923        17,418   

MFG

     19,095        4,909        74,423        17,348   

GMT

     14,770        3,332        55,105        11,569   

UNALLOCATED

     —          (609     —          (804
  

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

     106,193        26,054        399,509        90,333   

IT PRODUCTS

     11,090        143        38,785        310   

RECONCILING ITEM

     (238     (387     (666     (1,289
  

 

 

   

 

 

   

 

 

   

 

 

 

ENTITY TOTAL

     117,045        25,810        437,628        89,354