EX-99.1 2 d72139dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter ended June 30, 2015 under IFRS

Gross Revenues grew 10% YoY

IT Services Revenue grew in line with guidance

Bangalore, India and East Brunswick, New Jersey, USA – July 23, 2015 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2015.

Highlights of the Results for the Quarter ended June 30, 2015:

 

    Gross Revenues were LOGO 122.4 billion ($1.9 billion1), an increase of 10% YoY.

 

    Net Income2 was LOGO 21.9 billion ($344 million1), an increase of 4% YoY.

 

    IT Services Segment Revenue was $1,794.1 million, a sequential increase of 1.1%

 

    Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 0.2% sequentially and grew 8.1% YoY

 

    IT Services Segment Revenue in Rupee terms was LOGO 115.8 billion ($1.8 billion1), an increase of 10% YoY.

 

    IT Services Segment Results was LOGO 24.3 billion ($382 million1), an increase of 1% YoY.

 

    IT Services Segment Margins was 21.0% for the quarter.

Performance for the quarter ended June 30, 2015

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said – “On the Run side, deals are getting increasingly competitive and we are focused on increasing the levels of automation, while on the Change side, new stakeholders are influencing buying decisions in the Digital space. On the Run side, we continued to win deals which deploy Wipro HOLMESTM, our Artificial Intelligence platform to drive down costs for our customers. On the Change side, we have announced the acquisition of Designit, one of the largest independent global strategic design firms. Designit’s design capabilities in synergy with Wipro’s scale in technology services will position Wipro uniquely in Digital, as an integrated design & technology player.”

Jatin Dalal, Chief Financial Officer of Wipro, said – “We continued to drive productivity and improve operating levers even as we invested for growth in people, process and IP. In the quarter, we maintained strong cash flow generation while operating margins were, on predictable lines, modestly lower due to employee compensation measures.”

Outlook for the Quarter ending September 30, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,821 million to $ 1,857 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.56, Euro/USD at 1.13, AUD/USD at 0.78, USD/INR at 63.86 and USD/CAD at 1.22

IT Services

The IT Services segment had a headcount of 161,789 as of June 30, 2015. We added 36 new customers during 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 30, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 63.59. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2015 was US$1= LOGO 64.53

 

2. Refers to ‘Profit for the period attributable to equity holders of the company’


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

Wipro has been selected by one of the largest upstream oil and gas companies in Oman as its IT Partner to implement an ‘Integrated IT Services Contract’. The five-year engagement aims to improve operational efficiency across the organisation by integrating managed services for help desk, applications and telecom.

Wipro won a multi-year total outsourcing deal spanning Applications, Infrastructure and Business Process Services in a pay-per-use model from one of the largest construction companies with operations around the world. This engagement will transform the customer’s technology estate to drive simplification, scalability, agility and cost optimisation.

Wipro won an IT outsourcing deal from a global leader in marketing services for Small and Medium Businesses (SMBs). Wipro will provide applications and infrastructure services to the customer’s business units in the US, UK and Spain. The deal includes tools for automation and innovation, all of which are being offered in an Opex-based commercial model.

Corporation Bank has chosen Wipro to transform its existing core banking solution. This is a technology transformation initiative covering core transaction processing, channels across Internet and Mobile Banking, Risk Based Internal Audit and Enterprise Performance Management Applications. This project aims at providing Corporation Bank and its customers with an enhanced uptime and better response.

Wipro Ventures

During this fiscal year, Wipro made an investment in Talena, an early-stage company building innovative Big Data Availability Management Solutions.

Wipro also made an investment in Vicarious, an early-stage company developing the next-generation of Artificial Intelligence algorithms and solutions.

Digital highlights

Wipro Digital, the digital business unit of Wipro Limited, on July 9, 2015, announced its intention to acquire Designit, an award-winning global strategic design firm specializing in designing transformative product-service experiences. This investment marks a further stage in Wipro’s move to evolve the digital offerings it takes to market, combining its reputation and heritage in deep engineering and transformative technology with human centered-design methods.

Wipro has been awarded a strategic Application Development and Management contract by Allied Irish Bank, a leading bank in Ireland offering a full range of personal and corporate banking services. Wipro will manage and transform their Digital and Online Channels, Data and Enterprise support services & Applications estate over a period of 5 years.

This win builds on recent successes by Wipro Digital, including selection by a North American bank to redesign and implement a transformational B2B payment portal as well as working with the Lawn Tennis Association of the UK as their official Digital Technology Services Partner.

Awards and accolades

Wipro was been ranked among the top service providers in the ‘2015 Nordic IT Outsourcing Study’, an annual study on IT outsourcing and IT service provider performance in the Nordic region, conducted by Whitelane Research and PA Consulting Group. Wipro received an overall customer satisfaction score of 80% from its customers in Sweden, which was significantly higher than the average score (72%) for other service providers.


Wipro has been rated as a ‘High Performer’ by leading global analyst firm HfS Research, in the Population Health and Care Management (PHM) Business Services for U.S. Healthcare Providers and Payers, April 2015 Blueprint report.

Everest Group 2015 Workplace PEAK Matrix positions Wipro in the Leaders’ quadrant based on overall market success and delivery capabilities. Everest Group also positioned Wipro in the Leaders’ category based on overall market success and delivery capabilities in its 2015 PEAK Matrix for Banking AO (Application Outsourcing). Additionally, Wipro has been placed in the Leaders’ quadrant by Everest Group in its 2015 PEAK Matrix for Mortgage BPO.

IT Products

 

    Our IT Products Segment delivered Revenue of LOGO 8.2 billion ($128 million1) for the quarter ended June 30, 2015, an increase of 7% YoY.

 

    IT Products Segment Results for the quarter ended June 30, 2015 was LOGO 139 million ($2 million1).

Please refer the table on page 6 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 6 provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial 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 June 30, 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 Limited (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

   Abhishek Kumar Jain    Vipin Nair

Phone: +91-80-2505 6186

   Phone: +1 978 826 4700    Phone: +91-80-3991-6154

aravind.viswanathan@wipro.com

   abhishekkumar.jain@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 June 30,  
     2015      2015      2015  
    

 

    

 

     Convenience
translation into US
dollar in millions
(unaudited) - Refer
footnote 1 on Page 1
 

ASSETS

        

Goodwill

     68,078         69,240         1,089   

Intangible assets

     7,931         7,983         126   

Property, plant and equipment

     54,206         55,738         877   

Derivative assets

     736         271         4   

Available for sale investments

     3,867         4,013         63   

Non-current tax assets

     11,409         11,551         182   

Deferred tax assets

     2,945         3,636         57   

Other non-current assets

     14,369         14,179         223   
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     163,541         166,611         2,621   
  

 

 

    

 

 

    

 

 

 

Inventories

     4,849         4,736         74   

Trade receivables

     91,531         91,740         1,443   

Other current assets

     73,359         69,487         1,093   

Unbilled revenues

     42,338         46,259         727   

Available for sale investments

     53,908         110,585         1,739   

Current tax assets

     6,490         6,949         109   

Derivative assets

     5,077         3,250         51   

Cash and cash equivalents

     158,940         132,937         2,091   
  

 

 

    

 

 

    

 

 

 

Total current assets

     436,492         465,943         7,327   
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     600,033         632,554         9,948   
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     4,937         4,938         78   

Share premium

     14,031         14,120         222   

Retained earnings

     372,248         394,177         6,199   

Share based payment reserve

     1,312         1,688         27   

Other components of equity

     15,454         14,485         228   
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     407,982         429,408         6,754   

Non-controlling interest

     1,646         1,827         29   
  

 

 

    

 

 

    

 

 

 

Total equity

     409,628         431,235         6,783   
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Long—term loans and borrowings

     12,707         12,702         200   

Deferred tax liabilities

     3,240         3,186         50   

Derivative liabilities

     71         41         1   

Non-current tax liabilities

     6,695         6,269         99   

Other non-current liabilities

     3,658         5,441         86   

Provisions

     5         12         —     
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     26,376         27,651         436   
  

 

 

    

 

 

    

 

 

 

Loans and borrowings and bank overdrafts

     66,206         69,082         1,085   

Trade payables and accrued expenses

     58,745         63,962         1,006   

Unearned revenues

     16,549         16,829         265   

Current tax liabilities

     8,036         8,932         140   

Derivative liabilities

     753         1,261         20   

Other current liabilities

     12,223         12,238         192   

Provisions

     1,517         1,364         21   
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     164,029         173,668         2,729   
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     190,405         201,319         3,165   
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     600,033         632,554         9,948   
  

 

 

    

 

 

    

 

 

 


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 June 30,  
     2014     2015     2015  
    

 

   

 

    Convenience
translation into US
dollar in millions
(unaudited) - Refer
footnote 1 on Page 1
 

Gross revenues

     111,358        122,376        1,923   

Cost of revenues

     (74,941     (84,787     (1,333

Gross profit

     36,417        37,589        590   

Selling and marketing expenses

     (7,557     (8,044     (126

General and administrative expenses

     (6,187     (6,853     (108

Foreign exchange gains/(losses), net

     1,098        1,330        21   

Results from operating activities

     23,771        24,022        377   

Finance expenses

     (888     (1,286     (20

Finance and other income

     4,239        5,242        82   

Profit before tax

     27,122        27,978        439   

Income tax expense

     (5,942     (5,945     (93
  

 

 

   

 

 

   

 

 

 

Profit for the period

     21,180        22,033        346   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the company

     21,032        21,877        344   

Non-controlling interest

     148        156        2   
  

 

 

   

 

 

   

 

 

 

Profit for the period

     21,180        22,033        346   
  

 

 

   

 

 

   

 

 

 

Earnings per equity share:

      

Attributable to equity share holders of the company

      

Basic

     8.57        8.91        0.14   

Diluted

     8.54        8.89        0.14   

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

      

Basic

     2,455,543,231        2,455,804,709        2,455,804,709   

Diluted

     2,462,939,809        2,460,584,039        2,460,584,039   

Additional Information

      

Segment Revenue

      

IT Services Business Units

      

BFSI

     28,065        31,020        489   

HLS

     11,290        12,988        204   

RCTG

     14,727        17,380        273   

ENU

     16,822        17,577        276   

MFG

     19,110        21,524        338   

GMT

     15,069        15,284        240   
  

 

 

   

 

 

   

 

 

 

IT SERVICES TOTAL

     105,083        115,773        1,820   

IT PRODUCTS

     7,660        8,174        128   

RECONCILING ITEMS

     (287     (241     (4
  

 

 

   

 

 

   

 

 

 

TOTAL

     112,456        123,706        1,944   
  

 

 

   

 

 

   

 

 

 

Segment Result

      

IT Services Business Units

      

BFSI

     6,624        7,013        111   

HLS

     2,131        2,759        43   

RCTG

     3,188        3,140        49   

ENU

     4,553        3,812        60   

MFG

     4,368        4,327        69   

GMT

     3,762        2,698        42   

OTHERS

       —          —     

UNALLOCATED

     (623     530        8   
  

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

     24,003        24,279        382   

IT PRODUCTS

     165        139        2   

RECONCILING ITEMS

     (397     (396     (6
  

 

 

   

 

 

   

 

 

 

TOTAL

     23,771        24,022        378   
  

 

 

   

 

 

   

 

 

 

FINANCE EXPENSE

     (888     (1,286     (20

FINANCE AND OTHER INCOME

     4,239        5,242        82   
  

 

 

   

 

 

   

 

 

 

PROFIT BEFORE TAX

     27,122        27,978        440   

INCOME TAX EXPENSE

     (5,942     (5,945     (94
  

 

 

   

 

 

   

 

 

 

PROFIT FOR THE PERIOD

     21,180        22,033        346   
  

 

 

   

 

 

   

 

 

 

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.

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.

In the IT Products segment, the Company is 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 products, software licenses and other related deliverables.

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

 

Three Months ended June 30, 2015  

IT Services Revenue as per IFRS

   $ 1,794       IT Services Revenue as per IFRS    $ 1,794   

Effect of Foreign currency exchange movement

   $ (16)       Effect of Foreign currency exchange movement    $ 87   
  

 

 

       

 

 

 

Non-GAAP Constant Currency IT Services

      Non-GAAP Constant Currency IT Services   

Revenue based on previous quarter exchange rates

   $ 1,778       Revenue based on previous year exchange rates    $ 1,881