EX-99.1 2 d856466dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter ended December 31, 2014 under IFRS

IT Services Revenue grew 3.7% sequentially in constant currency

Net Income for the quarter grew 9% YoY

Bangalore, India and East Brunswick, New Jersey, USA – January 16, 2015 – Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2014.

Highlights of the Results for the Quarter ended December 31, 2014:

 

    Total Revenues were LOGO 119.9 billion ($1.9 billion1), an increase of 6% YoY.

 

    Net Income2 was LOGO 21.9 billion ($348 million1), an increase of 9% YoY.

 

    Non-GAAP constant currency IT Services Revenue in dollar terms grew 3.7% to $1,836.2 million, within our guidance range of $1,808 million to $1,842 million.

 

    IT Services Revenue was $1,795.4 million, a sequential increase of 1.3% and YoY increase of 7.0%.

 

    IT Services Margins was 21.8%.

 

    Wipro declared an interim dividend of LOGO 5 ($0.081) per share /ADS.

Performance for the quarter ended December 31, 2014

Azim Premji, Chairman of Wipro, said, Developments in the Global currency and commodity markets are affecting major economies unevenly even as India anticipates growth led by next-generation of economic reforms.”

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, We had a very satisfying quarter in terms of sequential revenue growth. We continue to see strong deal momentum as we are seen as the partner of choice for customers seeking to differentiate by using digital technologies as well as save costs in the traditional business.”

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said – “During the quarter, we saw all round growth led by growth in our Healthcare & Life Sciences business and Global Infrastructure Services. The share of fixed price contracts increased to over 55% of engagements – a reflection of the maturity of Wipro’s customer engagement model.”

 

1. For the convenience of the reader, the amounts in Indian rupees in this release have been translated into United States dollars at the noon buying rate in New York City on December 31, 2014, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 63.04. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2014 was US$1= LOGO 63.19
2. Refers to ‘Profit for the period attributable to equity holders of the company’


Outlook for the Quarter ending March 31, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,814 million to $ 1,850 million*.

 

* Guidance is based on the following exchange rates: GBP/USD at 1.56, Euro/USD at 1.23, AUD/USD at 0.84, USD/INR at 62.90 and USD/CAD at 1.15

IT Services

 

    IT Services Segment Revenues in Rupee terms was LOGO 113.4 billion ($1.8 billion1), an increase of 10% YoY.

 

    IT Services Segment Result was LOGO 24.7 billion ($392 million1), an increase of 4% YoY.

 

    Non-GAAP constant currency IT Services Revenue in dollar terms grew 3.7% to $1,836.2 million, within our guidance range of $1,808 million to $1,842 million.

 

    IT Services Revenue was $1,795.4 million, a sequential increase of 1.3% and YoY increase of 7.0%.

The IT Services segment had a headcount of 156,866 as of December 31, 2014. We added 44 new customers during the quarter.

Wipro continued its momentum in winning Large Deals globally as listed below:

Wipro was selected by Levi Strauss & Co. (LS&Co), one of the world’s largest brand-name apparel companies and global leader in Jeanswear, as its primary partner for global applications maintenance and development, infrastructure and BPO services. The five-year contract is geared towards bringing cost efficiencies and enabling enhanced optimization of applications, infrastructure, and BPO services within HR, Finance, IT, Customer Service, and Consumer Relations areas, thereby helping Levi Strauss & Co with their ongoing efficiency and cost saving measures to improve profitability.

Wipro has been selected by a large global food company as its partner for all its infrastructure and hosting needs. Wipro will leverage its US-based data centers and industry leading ServiceNXT Framework to enable world class Infrastructure services to support the customer’s evolving business needs. The five-year contract will optimize applications and infrastructure across the entire enterprise, thereby helping the client with its ongoing business and technology needs.

Wipro has won a multi-year payments transformation and platform management deal with a top 10 bank and card issuer in the US. The deal further enhances Wipro’s leadership position in the growing payments space and strengthens its consulting and delivery capabilities in payments and cards.

Wipro has been chosen as a strategic partner by a global leader in payments technology as part of their transformation strategy. The multi-year deal will result in Wipro partnering with the payments major across application development, maintenance, testing and infrastructure services.

Advanced Technologies & Solutions continued its traction with customers in the areas of Cloud, Mobility, Analytics, Big Data, and Workplace Collaboration, across verticals. Some marquee wins in Q3 include engineering of a big data platform on public cloud for a pharma major, financial risk and compliance analytics for a leading global investment bank.


Wipro has been empaneled by one of the world’s largest providers of financial services as one of its IT services providers. Wipro was selected for its depth and breadth of services and its ability to scale and support the customer’s goal of consolidation and growth, as the latter continues to invest in IT.

Wipro has been chosen by Cairn India Limited, India’s largest independent oil and gas exploration and production company as its IT partner for a business transformation program. Through this program Cairn India limited will achieve improved service delivery and meet its expansion plans.

Wipro has been chosen by the Government of Assam to design, develop and maintain an IT Solution for the state’s National Register of Citizens (NRC). The company will support the setting-up of the NRC Data Center, ‘Seva Kendras’ and digitization of the citizen application forms for updating the data.

Wipro has been selected to provide advisory and project management services to help set-up the IT landscape of a new bank, being launched by IDFC Limited, a leading Indian infrastructure finance company.

Awards and accolades

Wipro Digital has been named to the ‘Winner’s Circle’ by the analyst firm HfS Research in its inaugural Marketing Operations and Digital Customer Experience Management Blueprint Report. The report evaluates service providers on their execution and innovation capabilities across marketing content development and management, campaign management, digital customer relationship management services and marketing analytics services. As per the report, Wipro Digital is a leader at developing strong client relationships, executing services beyond expectations and is highly flexible when meeting client needs. The report further states that Wipro Digital has a strong vision for the future, invests in future capabilities, works across verticals and with external partners to increase value for clients.

Wipro has been positioned as a ‘Leader’ in the first ever published Gartner Magic Quadrant for Application Testing Services, Worldwide 2014 authored by Susanne Matson and Patrick J. Sullivan, published on 25 November 2014. The report evaluated 16 different software vendors on 15 criteria and placed Wipro Ltd. in the Leaders quadrant. Gartner defines “Application testing services” as a comprehensive term used to capture all types of verification and validation services for the purposes of supporting clients’ applications quality control and quality assurance (QA). Verification assesses the technical behavior, and validation assesses the functional behavior of tested elements.

Wipro was positioned as a ‘Leader’ in Gartner Magic Quadrant Oracle Application Implementation Services, Worldwide 2014 authored by Alex Soejarto and Susanne Matson, published on 04 December 2014. The report evaluated 14 different software vendors on their completeness of vision and ability to execute and placed Wipro Ltd. in the Leaders quadrant. Gartner defines, “Leaders are performing well today, gaining traction and mind share in the market; they have a clear vision of the market’s direction, are helping clients beyond product road maps, and are actively building competencies to sustain their leadership position in the market.

Wipro has been named a “Leader” by technology global research and advisory firm Forrester Research Inc. in its report, “The Forrester Wave™: Business Intelligence Service Providers, Q4 2014”. The report states that Wipro is amongst vendors that present formidable management consulting capabilities, capable of tackling not just tactical, but strategic and advisory initiatives.


IT Products

 

    Our IT Products Segment delivered Revenue of LOGO 7.7 billion ($123 million1) for the quarter ended December 31, 2014.

 

    IT Products Segment results for the quarter ended December 31, 2014 was LOGO 89 million ($1 million1).

 

    IT Products Revenues for the fiscal year ended March 31, 2014 included sales of Wipro branded desktops, laptops and servers which Wipro ceased manufacturing in the quarter ended December 31, 2013.

Please refer the table on page 7 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

Pursuant to the announcement issued as part of the press release on October 22, 2014, Wipro Inc. Benefit Trust sold 1.8 million shares of Wipro Limited and the same is reflected in the financial statements of the quarter ended December 31, 2014.

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 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 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.

This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS, and may be different from non-GAAP measures used by other companies. In addition to this non-GAAP measure, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.

Results for the quarter ended December 31, 2014, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com.

Quarterly Conference Call

We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (08:45 a.m. US Eastern Time) to discuss our performance for the quarter. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com.


About Wipro Limited (NYSE: WIT)

Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” - helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 150,000, serving clients in 175+ cities across 6 continents.

For more information, please visit www.wipro.com

 

Contact for Investor Relations   Contact for Media & Press  
Aravind V S    Vaibhav Saha   Vipin Nair  
Phone: +91-80-2505 6186    Phone:+1 732-509-1362   Phone: +91-80-3991-6154  
aravind.viswanathan@wipro.com    vaibhav.saha@wipro.com   vipin.nair1@wipro.com  

Forward-looking statements

The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, 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

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

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

 

            As of March 31,     As of December 31,  
     Notes      2014     2014      2014  
                         Convenience
translation into US
dollar in millions
(unaudited) Refer
Note 2(iv)
 

ASSETS

          

Goodwill

     5         63,422        69,327         1,100   

Intangible assets

     5         1,936        8,798         140   

Property, plant and equipment

     4         51,449        54,168         859   

Derivative assets

     13         286        576         9   

Available for sale investments

     7         2,676        3,029         48   

Non-current tax assets

        10,192        10,122         161   

Deferred tax assets

        3,362        3,579         57   

Other non-current assets

     10         14,295        14,449         229   
     

 

 

   

 

 

    

 

 

 

Total non-current assets

        147,618        164,048         2,603   
     

 

 

   

 

 

    

 

 

 

Inventories

     8         2,293        4,361         69   

Trade receivables

        85,392        93,757         1,487   

Other current assets

     10         39,474        57,270         908   

Unbilled revenues

        39,334        42,238         670   

Available for sale investments

     7         60,557        82,985         1,316   

Current tax assets

        9,774        6,123         97   

Derivative assets

     13         3,661        2,511         40   

Cash and cash equivalents

     9         114,201        122,113         1,937   
     

 

 

   

 

 

    

 

 

 

Total current assets

        354,686        411,358         6,524   
     

 

 

   

 

 

    

 

 

 

TOTAL ASSETS

        502,304        575,406         9,127   
     

 

 

   

 

 

    

 

 

 

EQUITY

          

Share capital

        4,932        4,937         78   

Share premium

        12,664        13,903         221   

Retained earnings

        314,952        364,399         5,780   

Share based payment reserve

        1,021        1,186         19   

Other components of equity

        10,472        14,120         224   

Shares held by controlled trust

        (542     —           —     
     

 

 

   

 

 

    

 

 

 

Equity attributable to the equity holders of the company

        343,499        398,545         6,322   

Non-controlling interest

        1,387        1,504         24   
     

 

 

   

 

 

    

 

 

 

Total equity

        344,886        400,049         6,346   
     

 

 

   

 

 

    

 

 

 

LIABILITIES

Long - term loans and borrowings

     11         10,909        12,522         199   

Deferred tax liabilities

        1,796        2,861         45   

Derivative liabilities

     13         629        310         5   

Non-current tax liability

        3,448        6,361         101   

Other non-current liabilities

     12         4,174        4,273         68   

Provisions

     12         6        7         —     
     

 

 

   

 

 

    

 

 

 

Total non-current liabilities

        20,962        26,334         418   
     

 

 

   

 

 

    

 

 

 

Loans and borrowings and bank overdrafts

     11         40,683        57,084         906   

Trade payables and accrued expenses

        52,256        53,677         852   

Unearned revenues

        12,767        15,838         249   

Current tax liabilities

        12,482        7,489         119   

Derivative liabilities

     13         2,504        1,833         29   

Other current liabilities

     12         14,394        11,765         187   

Provisions

     12         1,370        1,337         21   
     

 

 

   

 

 

    

 

 

 

Total current liabilities

        136,456        149,023         2,363   
     

 

 

   

 

 

    

 

 

 

TOTAL LIABILITIES

        157,418        175,357         2,781   
     

 

 

   

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

        502,304        575,406         9,127   
     

 

 

   

 

 

    

 

 

 


Wipro limited and subsidiaries

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

 

     Three Months ended December 31,     Nine Months ended December 31,  
     2013     2014     2014     2013     2014     2014  
               Convenience
translation into US

dollar in millions
(unaudited)
                Convenience
translation into US

dollar in millions
(unaudited)
 

Gross revenues

     112,713        119,929        1,902        317,734        348,125        5,522   

Cost of revenues

     (76,365     (82,867     (1,315     (217,788     (238,675     (3,786

Gross profit

     36,348        37,062        587        99,946        109,451        1,736   

Selling and marketing expenses

     (7,759     (7,524     (119     (22,224     (22,709     (360

General and administrative expenses

     (5,775     (6,426     (102     (17,028     (19,217     (305

Foreign exchange gains/(losses), net

     604        922        15        2,849        3,343        53   

Results from operating activities

     23,418        24,034        381        63,543        70,867        1,124   

Finance expenses

     (898     (810     (13     (2,049     (2,687     (43

Finance and other income

     3,812        5,035        81        10,585        14,383        228   

Profit before tax

     26,332        28,259        449        72,079        82,563        1,309   

Income tax expense

     (6,060     (6,228     (99     (16,064     (18,369     (291
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     20,272        22,031        350        56,015        64,194        1,018   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

            

Equity holders of the company

     20,147        21,928        348        55,703        63,808        1,012   

Non-controlling interest

     125        103        2        312        386        6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     20,272        22,031        350        56,015        64,194        1,018   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

            

Attributable to equity share holders of the company

            

Basic

     8.20        8.92        0.14        22.69        25.97        0.41   

Diluted

     8.18        8.88        0.14        22.63        25.85        0.41   

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

            

Basic

     2,455,541,979        2,457,766,859        2,457,766,859        2,454,745,433        2,457,491,867        2,457,491,867   

Diluted

     2,462,432,622        2,469,323,243        2,469,323,243        2,462,073,492        2,468,262,835        2,468,262,835   

Additional Information

            

Segment Revenue

            

IT Services Business Units

            

BFSI

     27,305        29,177        463        77,567        85,653        1,359   

HLS

     10,914        13,247        210        29,855        36,713        582   

RCTG

     15,116        16,005        254        43,481        45,951        729   

ENU

     16,625        18,637        296        46,750        53,792        853   

MFG

     19,199        20,718        329        55,328        59,721        947   

GMT

     14,115        15,661        248        40,335        45,933        729   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT SERVICES TOTAL

     103,274        113,445        1,800        293,316        327,763        5,199   

IT PRODUCTS

     10,155        7,740        123        27,695        24,552        389   

RECONCILING ITEM

     (112     (334     (5     (428     (847     (13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     113,317        120,851        1,917        320,583        351,468        5,575   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

            

IT Services Business Units

            

BFSI

     6,377        7,035        112        17,148        19,904        316   

HLS

     1,847        2,981        47        5,155        7,534        120   

RCTG

     3,164        3,255        52        8,964        9,648        153   

ENU

     4,683        4,262        68        12,531        13,483        214   

MFG

     4,565        4,228        67        12,439        12,630        200   

GMT

     2,845        3,438        55        8,237        10,696        170   

OTHERS

       —          —            583        9   

UNALLOCATED

     309        (458     (7     (195     (1,606     (25
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

     23,790        24,741        392        64,279        72,872        1,156   

IT PRODUCTS

     (116     89        1        167        316        5   

RECONCILING ITEM

     (256     (796     (13     (903     (2,321     (37
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     23,418        24,034        381        63,543        70,867        1,124   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FINANCE EXPENSE

     (898     (810     (13     (2,049     (2,687     (43

FINANCE AND OTHER INCOME

     3,812        5,035        81        10,585        14,383        228   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT BEFORE TAX

     26,332        28,259        449        72,079        82,563        1,309   

INCOME TAX EXPENSE

     (6,060     (6,228     (99     (16,064     (18,369     (291
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT FOR THE PERIOD

     20,272        22,031        350        56,015        64,194        1,018   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income.

The Company is organized by the following operating segments; IT Services and IT Products.

IT Services: The IT Services segment primarily consists of IT Service offerings to our customers organized by industry verticals as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing (MFG), Global Media and Telecom (GMT). Starting with quarter ended September 30, 2014, it also includes Others which comprises dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income. Key service offering to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process outsourcing services.

The IT Products segment sells a range of Wipro personal desktop computers, Wipro servers and Wipro notebooks. The Company is also a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. During the fiscal year ended March 31, 2014 the Company ceased the manufacturing of ‘Wipro branded desktops, laptops and servers’. Revenue relating to the above items is reported as revenue from the sale of IT Products.

 

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

IT Services Revenue as per IFRS

   $ 1,795       IT Services Revenue as per IFRS    $ 1,795   

Effect of Foreign currency exchange movement

   $ 41       Effect of Foreign currency exchange movement    $ 47   
  

 

 

       

 

 

 

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

   $ 1,836      

Non-GAAP Constant Currency IT Services

Revenue based on previous year exchange rates

   $ 1,842