EX-99.2 3 d915417dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter and year ended March 31, 2015 under IFRS

IT Services Revenue grew 8.7% in the year on constant currency

Net Income for the year grew 11% YoY

Wipro declared a final dividend of LOGO 7 ($0.11) per share/ADS

Bangalore, India and East Brunswick, New Jersey, USA – April 21, 2015 – Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2015.

Highlights of the Results

Results for the Year ended March 31, 2015:

 

  Total Revenues were LOGO 469.5 billion ($7.5 billion1), an increase of 8% YoY.

 

  Net Income2 was LOGO 86.5 billion ($1.4 billion1), an increase of 11% YoY.

 

  Wipro declared a final dividend of LOGO 7 ($0.11) per share/ADS, taking the total dividend declared for the year 2014-15 to LOGO 12 ($0.19) per share/ADS.

 

  IT Services Revenue was $7,081.6 million, a YoY increase of 7.0%.

 

  Non-GAAP Constant Currency IT Services Revenue in dollar terms grew 8.7% to $7,190.6 million.

 

  IT Services Segment Revenues in Rupee terms was LOGO 440.2 billion ($7.1 billion1), an increase of 10% YoY.

 

  IT Services Segment Result was LOGO 97.6 billion ($1.6 billion1), an increase of 8% YoY.

 

  IT Services Margins for the year was 22.2%.

Results for the Quarter ended March 31, 2015:

 

  Total Revenues were LOGO 121.4 billion ($1.9 billion1), an increase of 4% YoY.

 

  Net Income2 was LOGO 22.7 billion ($366 million1), an increase of 2% YoY.

 

  Non-GAAP constant currency IT Services Revenue in dollar terms grew 1.2% to $1,817.8 million, within our guidance range of $1,814 million to $1,850 million.

 

  IT Services Revenue was $1,774.5 million, a sequential decrease of 1.2% and YoY increase of 3.2%.

 

  IT Services Segment Revenues in Rupee terms was LOGO 112.4 billion ($1.8 billion1), an increase of 6% YoY.

 

  IT Services Segment Result was LOGO 24.8 billion ($398 million1), a decrease of 5% YoY.

 

  IT Services Margins was 22.0%, an expansion of 23 bps sequentially.

Performance for the quarter and year ended March 31, 2015

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said, “We continue to execute on our strategy and have achieved improved customer satisfaction through better articulated solutions and improved delivery. We are well-positioned to take advantage of the opportunities in the market, while tackling headwinds in certain areas. We see Digital, Open Source and Artificial Intelligence as key levers for driving business change and reshaping the delivery model for the future.”

Jatin Dalal, Chief Financial Officer of Wipro, said – “We continue to maintain our focus on operational improvements and productivity enhancements. This has resulted in margin expansion despite adverse cross-currency movements.”

 

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, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 62.31. However, the realized exchange rate in our IT Services business segment for the quarter ended March 31, 2015 was US$1= LOGO 63.35
2. Refers to ‘Profit for the period attributable to equity holders of the company’


Outlook for the Quarter ending June 30, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,765 million to $ 1,793 million*.

 

* Guidance is based on the following exchange rates: GBP/USD at 1.49, Euro/USD at 1.07, AUD/USD at 0.77, USD/INR at 62.10 and USD/CAD at 1.27

IT Services

The IT Services segment had a headcount of 158,217 as of March 31, 2015. We added 65 new customers during the quarter.

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

Wipro Limited has won a multi-year engagement with Allied Irish Bank in Ireland for managing their core datacenter infrastructure. The engagement includes end-to-end management of mainframe and distributed systems and will enable the bank to provide high availability services to its end customers. Wipro is setting up its ServiceNXT™ Delivery Center in Dublin to cater to the near-shore requirements of this program and also add to its existing portfolio of global delivery centers.

Wipro has signed a five-year agreement with Symetra Life Insurance Company, a leader in retirement benefits and life products, to provide a range of IT Infrastructure services. Wipro’s services will include hosting and servicing of mainframe and server environments, service desk and other technologies at the company’s data centers.

A leading global apparel and footwear company has engaged Wipro to transform their End User Services, Network and Distributed Computing platforms in addition to expanding their IT applications portfolio. As the customer organization grows its lifestyle brands, this strategic initiative will be the global backbone for operational excellence with a high degree of automation, real-time analytics, self-help and self-heal.

Wipro has won an integrated Applications and Infrastructure deal with T-Mobile Polska S.A. In this strategic partnership spanning 5 years, Wipro would help T-Mobile systemize and standardize the IT architecture and operations of their Poland entity.

Wipro has been chosen as the engineering partner by a leading global technology company for establishing a shared services team, to support testing and maintenance of its core platform products. As part of this multi-year engagement, Wipro will leverage its product engineering capabilities to bring about process agility, faster delivery, enhanced quality and year-on-year efficiency gains for the customer.

A global manufacturing major has engaged Wipro in a multi-year and multi-million dollar workplace transformation and support program. As part of this engagement, Wipro will leverage its workplace transformation framework and automation tools to help enhance end-user experience and productivity for the manufacturing company.

Cloud highlights

Wipro’s Cloud business continued to build significant momentum in the applications and infrastructure areas. We have expanded our cloud applications business into new geographies with deal wins that include a leading Australian banking and insurance provider and a leading energy provider in Canada. Wipro’s ServiceNXT™ Cloud Operations Center has been selected for hosting and providing managed services for affiliate/partner applications by a global cigarette and tobacco company and for customer care and billing platform of a global telecom company. Wipro has also been selected as a strategic Cloud partner for the assessment and migration of 3000+ web-based applications for a large US-based multinational bank.


OpenSource highlights

Wipro’s Open Source practice continued to gain traction with customers in the areas of Middleware, Cloud, Analytics, Big Data, API (Application Program Interface) and Operating Systems across industries. Some marquee wins in Q4 include building treasury, budgeting, financial operations and MIS systems for a government organization, middleware integration for a global retail giant and migration of applications from a proprietary platform to an Open Source application server for a global investment bank.

Awards and accolades

Wipro was positioned in the ‘Winner’s Circle’ of the HfS Blueprint Report on Enterprise Analytics Services 2015. Wipro’s Vertical expertise, Big Data Analytics capabilities and collaborative approach with clients, have been called out as key areas of strength in the report.

Wipro has been positioned amongst ‘Leaders’ by Everest Group in their PEAK MatrixTM assessment 2015 on Record-to-Report (R2R) BPO Service provider within Finance & Accounting Outsourcing. This report examines multiple aspects of the R2R BPO market. It focuses on each service provider’s position on the Everest Group Performance, Experience, Ability and Knowledge (PEAK) Matrix while assessing their capabilities on the dimensions of market success, scale, scope, delivery capability, technology solution, and buyer satisfaction. The report also encompasses analysis of R2R BPO landscape and key solution characteristics.

Wipro was recognized by the Ethisphere Institute, as a 2015 World’s Most Ethical Company® for the fourth consecutive year. The World’s Most Ethical Companies designation recognizes those organizations that have had a material impact on the way business is operated. Wipro is one of only three companies in the Information Technology Services industry honored this year.

IT Products

 

  Our IT Products Segment delivered Revenue of LOGO 9.5 billion ($152 million1) for the quarter ended March 31, 2015, a sequential growth of 22%.

 

  IT Products Segment results for the quarter ended March 31, 2015 was LOGO 58 million ($1 million1).

 

  Revenue for the year ended March 31, 2015 was LOGO 34.0 billion ($546 million1) a degrowth of 12% YoY.

 

  Segment Results for the year ended March 31, 2015 was LOGO 374 million ($6 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.

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 and year ended March 31, 2015, 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 (09:45 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 March 31,  
     2014     2015      2015  
                  Convenience
translation into US
dollar in millions
(unaudited) Refer

Note 2(iv)
 

ASSETS

       

Goodwill

     63,422        68,078         1,093   

Intangible assets

     1,936        7,931         127   

Property, plant and equipment

     51,449        54,206         870   

Derivative assets

     286        736         12   

Available for sale investments

     2,676        3,867         62   

Non-current tax assets

     10,192        11,409         183   

Deferred tax assets

     3,362        2,945         47   

Other non-current assets

     14,295        14,369         231   
  

 

 

   

 

 

    

 

 

 

Total non-current assets

  147,618      163,541      2,625   
  

 

 

   

 

 

    

 

 

 

Inventories

  2,293      4,849      78   

Trade receivables

  85,392      91,531      1,469   

Other current assets

  39,474      73,359      1,177   

Unbilled revenues

  39,334      42,338      679   

Available for sale investments

  60,557      53,908      865   

Current tax assets

  9,774      6,490      104   

Derivative assets

  3,661      5,077      81   

Cash and cash equivalents

  114,201      158,940      2,551   
  

 

 

   

 

 

    

 

 

 

Total current assets

  354,686      436,492      7,004   
  

 

 

   

 

 

    

 

 

 

TOTAL ASSETS

  502,304      600,033      9,629   
  

 

 

   

 

 

    

 

 

 

EQUITY

Share capital

  4,932      4,937      79   

Share premium

  12,664      14,031      225   

Retained earnings

  314,952      372,248      5,974   

Share based payment reserve

  1,021      1,312      21   

Other components of equity

  10,472      15,454      248   

Shares held by controlled trust

  (542   —        —     
  

 

 

   

 

 

    

 

 

 

Equity attributable to the equity holders of the company

  343,499      407,982      6,547   

Non-controlling interest

  1,387      1,646      26   
  

 

 

   

 

 

    

 

 

 

Total equity

  344,886      409,628      6,573   
  

 

 

   

 

 

    

 

 

 

LIABILITIES

Long - term loans and borrowings

  10,909      12,707      204   

Deferred tax liabilities

  1,796      3,240      52   

Derivative liabilities

  629      71      1   

Non-current tax liability

  3,448      6,695      107   

Other non-current liabilities

  4,478      3,658      59   

Provisions

  6      5      —     
  

 

 

   

 

 

    

 

 

 

Total non-current liabilities

  21,266      26,376      423   
  

 

 

   

 

 

    

 

 

 

Loans and borrowings and bank overdrafts

  40,683      66,206      1,063   

Trade payables and accrued expenses

  51,917      58,745      945   

Unearned revenues

  12,767      16,549      264   

Current tax liabilities

  12,482      8,036      129   

Derivative liabilities

  2,504      753      12   

Other current liabilities

  14,429      12,223      196   

Provisions

  1,370      1,517      24   
  

 

 

   

 

 

    

 

 

 

Total current liabilities

  136,152      164,029      2,633   
  

 

 

   

 

 

    

 

 

 

TOTAL LIABILITIES

  157,418      190,405      3,056   
  

 

 

   

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

  502,304      600,033      9,629   
  

 

 

   

 

 

    

 

 

 


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 March 31,     Year ended March 31,  
    2014     2015     2015     2014     2015     2015  
              Convenience
translation into US
dollar in millions
(unaudited)
                Convenience
translation into US
dollar in millions
(unaudited)
 

Gross revenues

    116,535        121,420        1,949        434,269        469,545        7,536   

Cost of revenues

    (77,700     (82,609     (1,326     (295,488     (321,284     (5,156

Gross profit

    38,835        38,811        623        138,781        148,261        2,380   

Selling and marketing expenses

    (7,025     (7,916     (127     (29,248     (30,625     (491

General and administrative expenses

    (6,510     (6,633     (106     (23,538     (25,850     (415

Foreign exchange gains/(losses), net

    510        294        5        3,359        3,637        58   

Results from operating activities

    25,810        24,556        395        89,354        95,423        1,532   

Finance expenses

    (842     (912     (15     (2,891     (3,599     (58

Finance and other income

    3,959        5,476        88        14,542        19,859        319   

Profit before tax

    28,927        29,120        468        101,005        111,683        1,793   

Income tax expense

    (6,536     (6,255     (100     (22,600     (24,624     (395
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

  22,391      22,865      368      78,405      87,059      1,398   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

Equity holders of the company

  22,265      22,720      366      77,967      86,528      1,389   

Non-controlling interest

  126      145      2      438      531      9   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

  22,391      22,865      368      78,405      87,059      1,398   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

Attributable to equity share holders of the company

Basic

  9.07      9.25      0.15      31.76      35.25      0.57   

Diluted

  9.04      9.21      0.15      31.66      35.13      0.56   

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

Basic

  2,455,543,231      2,456,575,761      2,456,575,761      2,454,745,434      2,454,681,650      2,454,681,650   

Diluted

  2,462,876,367      2,465,876,236      2,465,876,236      2,462,626,739      2,462,579,161      2,462,579,161   

Additional Information

Segment Revenue

IT Services Business Units

BFSI

  28,468      29,852      479      106,035      115,505      1,854   

HLS

  11,275      13,171      211      41,130      49,884      801   

RCTG

  15,412      16,258      261      58,893      62,209      998   

ENU

  17,173      17,437      280      63,923      71,229      1,143   

MFG

  19,095      20,582      330      74,423      80,303      1,289   

GMT

  14,770      15,117      243      55,105      61,050      980   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT SERVICES TOTAL

  106,193      112,417      1,804      399,509      440,180      7,064   

IT PRODUCTS

  11,090      9,454      152      38,785      34,006      546   

RECONCILING ITEMS

  (238   (157   (3   (666   (1,004   (16
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  117,045      121,714      1,953      437,628      473,182      7,594   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

IT Services Business Units

BFSI

  7,005      7,474      120      24,153      27,378      439   

HLS

  2,482      3,031      49      7,637      10,565      170   

RCTG

  4,048      3,542      57      13,012      13,190      212   

ENU

  4,887      4,078      65      17,418      17,561      282   

MFG

  4,909      4,497      72      17,348      17,127      275   

GMT

  3,332      2,878      46      11,569      13,574      218   

OTHERS

  —        —        583      10   

UNALLOCATED

  (609   (723   (12   (804   (2,329   (37
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

  26,054      24,777      398      90,333      97,649      1,568   

IT PRODUCTS

  143      58      1      310      374      6   

RECONCILING ITEMS

  (387   (279   (4   (1,289   (2,600   (42
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

  25,810      24,556      395      89,354      95,423      1,532   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FINANCE EXPENSE

  (842   (912   (15   (2,891   (3,599   (58

FINANCE AND OTHER INCOME

  3,959      5,476      88      14,542      19,859      319   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT BEFORE TAX

  28,927      29,120      468      101,005      111,683      1,793   

INCOME TAX EXPENSE

  (6,536   (6,255   (100   (22,600   (24,624   (395
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT FOR THE PERIOD

  22,391      22,865      368      78,405      87,059      1,398   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 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)

 

Three Months ended March 31, 2015     Year ended March 31, 2015  

IT Services Revenue as per
IFRS

  $ 1,775     

IT Services Revenue as per
IFRS

  $ 1,775     

IT Services Revenue as per
IFRS

  $ 7,082   

Effect of Foreign currency exchange movement

  $ 43     

Effect of Foreign currency exchange movement

  $ 90     

Effect of Foreign currency exchange movement

  $ 109   
 

 

 

     

 

 

     

 

 

 

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

$ 1,818   

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

$ 1,865   

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

$ 7,191