EX-99.1 2 d128333dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

Results for the quarter ended December 31, 2015 under IFRS

Gross Revenues grew 7% YoY

Bangalore, India and East Brunswick, New Jersey, USA – January 18, 2016 — Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its third quarter ended December 31, 2015.

Highlights of the Results:

 

  Wipro Limited Gross Revenues were LOGO 128.6 billion ($1.9 billion1), an increase of 7% YoY.

 

  IT Services Segment Non-GAAP constant currency Revenue in dollar terms grew 1.4% sequentially and grew 6.3% YoY. IT Services Segment Revenue was $1,838.3 million, a sequential increase of 0.3%.

 

  IT Services Segment Revenue was LOGO 123.1 billion ($1,861 million1), an increase of 9% YoY.

 

  Net Income2 was LOGO 22.3 billion ($338 million1), an increase of 2% YoY.

 

  IT Services Segment Profit3 was LOGO 24.8 billion ($375 million1).

 

  IT Services Segment Margins was 20.2%.

 

  Headcount increased by 2,268 to 170,664.

 

  Wipro declared an interim dividend of LOGO 5 ($0.08) per share /ADS.

Performance for the quarter ended December 31, 2015

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said – “We delivered Revenues in line with our guidance. We saw a pick-up in large deal closures led by Global Infrastructure Services. It is becoming increasingly clear that customers want to simplify operations and optimize their IT spend while investing in Digital to transform their business. We are well-positioned to take advantage of this trend.”

Abidali Z. Neemuchwala, Chief Executive Officer-Designate of Wipro, said –  “We are focused on driving market share growth in our core businesses through integrated domain and technology services, while investing for the future in building differentiated Digital capabilities. We will leverage our strong culture of innovation and extremely talented employee pool to build compelling value propositions for our customers.”

Jatin Dalal, Chief Financial Officer of Wipro, said – “During the quarter, we have built competitive differentiation through the acquisition of two high-potential companies – cellent and Viteos. The impact on revenues from the Chennai floods were minimized significantly by strong execution of our robust Business Continuity Plans (BCP). The additional expenses incurred in deploying BCP impacted operating margins for 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 December 31, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= LOGO 66.19. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2015 was US$1= LOGO 66.99
2. Refers to ‘Profit for the period attributable to equity holders of the company’
3. Refers to Segment Results


Outlook for the Quarter ending March 31, 2016

We expect Revenues from our IT Services business to be in the range of $ 1,875 million to $1,912 million*.

 

* Guidance is based on the following exchange rates: GBP/USD at 1.50, Euro/USD at 1.07, AUD/USD at 0.72, USD/INR at 66.13 and USD/CAD at 1.37

IT Services

The IT Services segment had a headcount of 170,664 as of December 31, 2015. We added 39 new customers during the quarter.

Effective January 1, 2016, Wipro completed the transaction announced on December 2, 2015 to acquire cellent AG, a leading IT consulting and software services company in the DACH region of Germany, Austria and Switzerland.

On December 23, 2015, Wipro announced that it has signed a definitive agreement to acquire Viteos Group, a BPaaS provider for the Alternative Investment Management Industry.

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

Wipro has entered into a multi-year global infrastructure support engagement with one of the largest medical devices companies in the world. Wipro will standardize and simplify the customer’s IT infrastructure across multiple service lines and in over 90 countries.

A leading global nutrition, health and wellness company has selected Wipro to enable the migration of a significant portion of its global IT applications estate to a hybrid cloud. As part of the engagement, Wipro will provide IaaS (Infrastructure as a Service), PaaS (Platform as a Service), an integrated hardware-software-services stack, and billing-metering-chargeback in a completely outcome-based model.

A large global retailer has selected Wipro as its quality engineering partner. Wipro will help develop a new operating and financial model that will allow the customer to accurately forecast its quality engineering spends and optimize costs, while driving continuous improvements in the quality and time-to-market of its offerings.

Wipro has won a large contract from a European general insurance multinational for provisioning and managing the company’s infrastructure.

A leading security solutions manufacturer, headquartered in the Nordic region, has selected Wipro to transform its IT infrastructure. As part of the five-year agreement, Wipro will leverage its Boundaryless Datacenter offering and will consolidate the customer’s existing data centers and implement a cloud-based-services model, including IaaS (Infrastructure as a Service) and PaaS (Platform as a Service).

An Australia-headquartered manufacturing sector customer has awarded a five-year strategic, IT-as-a-service contract to Wipro. Wipro will have the end-to-end responsibility of running the customer’s IT operations and enabling the transformation of the existing IT estate to a next-generation digital-ready landscape. The new consumption-based model will enable the customer to be more agile, reliable and competitive while launching new products and services.

Digital highlights

Our Digital capability combining design, engineering and analytics is seeing traction in the marketplace. Unique capabilities of Designit combined with Wipro’s technological prowess is driving synergistic deal wins.


Wipro has been selected to help a global bank establish and operate its new digital platform, across 50 markets. With global scale and a blend of strategy, design and engineering capabilities, Wipro’s agile teams will help support consistent customer experience, underpinned by continuous delivery across this new digital platform. Wipro will reinvent the onboarding process for customers, help improve sales conversion rates and reduce operational costs.

Wipro has won a multi-year deal from a large bank to enable omni-channel self-service by digitizing service processes and leveraging new age digital technologies. This will help the bank provide superior customer experience while reducing costs, in the form of lower call volumes.

Wipro will be augmenting the in-house team of a market leader in the automotive space, with telematics domain skills and advanced engineering expertise for their telematics program.

Designit has been selected by a leading South American bank to work on designing an entirely new banking concept and experience, targeted to create the next-generation banking experience for customers who are usually not attracted to traditional banking offerings anymore.

For a major German telecommunications brand, Designit has been assigned to create future smart Product-Service-Experiences using artificial intelligence and similar emerging technologies.

For a leading European energy provider, Designit has been selected to design an innovation process to better facilitate the company’s investments into technology start-ups and to effectively drive the integration of acquired start-ups into the client’s own organizational portfolio.

Cloud highlights

Our Cloud applications business is seeing a good traction in the market. In the quarter ending December 31, 2015 we engaged with several clients to design and deploy their enterprise processes leveraging industry leading SaaS products. A few marquee engagements include Cloud CRM processes rationalization for a UK-based gas and utility major, simplification of lead & opportunity management processes for a leading US based equipment rental company, modernization of a B2B order management system for a leading chemicals supplier company, design and deployment of recruitment processes for a business process outsourcing enterprise, implementation of performance and goal management processes for an American satellite service provider and transforming the source-to-pay process for an global pharmaceutical and consumer packaged goods major.

Wipro has also partnered with Apttus, the category-defining Quote-to-Cash cloud solution provider, to deliver best-in-class Contract Lifecycle Management (CLM), Configure-Price-Quote (CPQ) & Revenue Management solutions to clients across industries.

Awards and accolades

Wipro continued to lead the ‘Global Engineering and R&D Service Providers (GSPR) Rating 2015’ by Zinnov Management Consulting for the sixth consecutive year. The Zinnov study evaluated more than 75 R&D service providers across the world in 15 major industry segments across key parameters like product development capabilities & innovation, client relationships, human capital, financials, ecosystem linkages, infrastructure, and business sustainability.

Wipro has been positioned as a “Leader” by Forrester Research Inc, in its report ‘The Forrester Wave™: Global Workplace Services, Q4 2015’. The report cites Wipro’s relative strength in infrastructure services delivery, well-balanced staff distribution across EMEA, North America and Asia Pacific, highest overall customer reference scores of any supplier evaluated in the analysis, strong customer value proposition, and compelling vision for workplace services.


Wipro has been positioned as a “Leader” by in the IDC MarketScape: Worldwide Life Science Manufacturing and Supply Chain 2015 vendor assessment for services in all the 3 service categories of strategic consulting, ITO and BPO.

Wipro has been recognised as a “Leader” by leading global analyst firm Everest Group, in the Healthcare Payer Digital IT Services PEAK Matrix Assessment 2015. This reaffirms our growing capabilities in the Healthcare Digital space.

Wipro has also been featured as a “Star Performer” in the Everest Group Healthcare Provider IT Services PEAK Matrix Assessment 2015. This reflects Wipro’s large scale and deeper client relationships, technology capability and investments in tools, platforms, and a global delivery presence in the Healthcare Provider space.

Wipro has been recognised as a “Leader” in the Gartner Magic Quadrant for Application Testing Services, Worldwide for the second consecutive year.

Wipro has been positioned in the ‘Winner’s Circle’ of HfS Blueprint Report on Trust-as-a-Service 2015. The report covers the market view of Digital Trust and Security Framework, the Digital Trust Maturity Scale, and the As-a-Service Economy.

Wipro has won 8 awards at the seventh Annual Golden Bridge Business and Innovation Awards Ceremony including the Grand Trophy Award for being the overall winner with maximum impact. Wipro was recognized for its innovations in API Management and Solutions, Information Technology (Software), Mobile Innovative Products or Services, Business Process Management and Application Development.

IT Products

 

  Our IT Products Segment delivered Revenue of LOGO 6.5 billion ($98 million1) for the quarter ended December 31, 2015

Please refer to 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 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 December 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 11:00 a.m. Indian Standard Time (12:30 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.” By combining digital strategy, customer centric design, advanced analytics and product engineering approach, Wipro helps its clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, Wipro has a dedicated workforce of over 160,000, serving clients in 175+ cities across 6 continents.

For more information, please visit www.wipro.com

 

Contact for Investor Relations    Contact for Media & Press
Pavan N Rao    Abhishek Kumar Jain    Vipin Nair
Phone: +91-80-4672 6143    Phone: +1 978 826 4700    Phone: +91-98450 14036
pavan.rao@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 December 31,  
     2015      2015      2015  
    

 

    

 

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

ASSETS

        

Goodwill

     68,078         75,361         1,139   

Intangible assets

     7,931         8,274         125   

Property, plant and equipment

     54,206         57,360         867   

Derivative assets

     736         237         4   

Available for sale investments

     3,867         4,391         66   

Non-current tax assets

     11,409         11,551         175   

Deferred tax assets

     2,945         3,850         58   

Other non-current assets

     14,369         13,718         207   
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     163,541         174,742         2,641   
  

 

 

    

 

 

    

 

 

 

Inventories

     4,849         6,095         92   

Trade receivables

     91,531         99,959         1,510   

Other current assets

     73,359         97,751         1,477   

Unbilled revenues

     42,338         45,662         690   

Available for sale investments

     53,908         151,651         2,291   

Current tax assets

     6,490         8,371         126   

Derivative assets

     5,077         3,486         53   

Cash and cash equivalents

     158,940         89,973         1,359   
  

 

 

    

 

 

    

 

 

 

Total current assets

     436,492         502,948         7,598   
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     600,033         677,690         10,239   
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     4,937         4,941         75   

Share premium

     14,031         14,532         220   

Retained earnings

     372,248         418,176         6,318   

Share based payment reserve

     1,312         1,950         29   

Other components of equity

     15,454         16,968         256   
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     407,982         456,567         6,898   

Non-controlling interest

     1,646         2,035         31   
  

 

 

    

 

 

    

 

 

 

Total equity

     409,628         458,602         6,929   
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Long - term loans and borrowings

     12,707         16,427         248   

Deferred tax liabilities

     3,240         3,379         51   

Derivative liabilities

     71         50         1   

Non-current tax liabilities

     6,695         7,397         112   

Other non-current liabilities

     3,658         7,296         110   

Provisions

     5         15         —     
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     26,376         34,564         522   
  

 

 

    

 

 

    

 

 

 

Loans and borrowings and bank overdrafts

     66,206         81,501         1,231   

Trade payables and accrued expenses

     58,745         61,918         935   

Unearned revenues

     16,549         19,122         289   

Current tax liabilities

     8,036         7,209         109   

Derivative liabilities

     753         908         14   

Other current liabilities

     12,223         12,622         191   

Provisions

     1,517         1,244         19   
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     164,029         184,524         2,788   
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     190,405         219,088         3,310   
  

 

 

    

 

 

    

 

 

 
        
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     600,033         677,690         10,239   
  

 

 

    

 

 

    

 

 

 


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,  
     2014     2015     2015     2014     2015     2015  
    

 

   

 

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

 

   

 

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

Gross revenues

     119,929        128,605        1,943        348,125        376,116        5,682   

Cost of revenues

     (82,867     (90,270     (1,364     (238,675     (260,881     (3,941

Gross profit

     37,062        38,335        579        109,450        115,235        1,741   

Selling and marketing expenses

     (7,524     (8,362     (126     (22,709     (25,114     (379

General and administrative expenses

     (6,426     (7,010     (106     (19,217     (20,710     (313

Foreign exchange gains/(losses), net

     922        911        14        3,343        2,774        42   

Results from operating activities

     24,034        23,874        361        70,867        72,185        1,091   

Finance expenses

     (810     (1,423     (21     (2,687     (4,298     (65

Finance and other income

     5,035        6,227        94        14,383        17,663        267   

Profit before tax

     28,259        28,678        434        82,563        85,550        1,293   

Income tax expense

     (6,228     (6,248     (95     (18,369     (18,679     (282
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     22,031        22,430        339        64,194        66,871        1,011   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

            

Equity holders of the company

     21,928        22,341        338        63,808        66,572        1,006   

Non-controlling interest

     103        89        1        386        299        5   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     22,031        22,430        339        64,194        66,871        1,011   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

            

Attributable to equity share holders of the company

            

Basic

     8.92        9.09        0.14        25.97        27.10        0.41   

Diluted

     8.88        9.07        0.14        25.85        27.05        0.41   

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

            

Basic

     2,457,766,859        2,457,022,905        2,457,022,905        2,457,491,867        2,456,551,992        2,456,551,992   

Diluted

     2,469,323,243        2,462,220,926        2,462,220,926        2,468,262,835        2,461,282,411        2,461,282,411   

Additional Information

            

Segment Revenue

            

IT Services Business Units

            

BFSI

     29,177        32,322        489        85,653        95,595        1,444   

HLS

     13,247        14,719        222        36,713        41,453        626   

RCTG

     16,005        19,158        289        45,951        54,650        826   

ENU

     18,637        17,708        268        53,792        52,949        800   

MFG

     20,718        22,683        343        59,721        66,769        1,009   

GMT

     15,661        16,557        250        45,933        47,932        724   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT SERVICES TOTAL

     113,445        123,147        1,861        327,763        359,348        5,429   

IT PRODUCTS

     7,740        6,503        98        24,552        20,119        304   

RECONCILING ITEMS

     (334     (134     (2     (847     (577     (9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     120,851        129,516        1,957        351,468        378,890        5,724   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

            

IT Services Business Units

            

BFSI

     7,035        7,199        109        19,904        21,147        320   

HLS

     2,981        3,188        48        7,534        8,991        136   

RCTG

     3,255        3,809        57        9,648        10,211        154   

ENU

     4,262        3,436        52        13,483        10,745        162   

MFG

     4,228        4,142        63        12,630        13,270        201   

GMT

     3,438        3,093        47        10,696        8,928        135   

OTHERS

     —          —          —          583        —          —     

UNALLOCATED

     (458     (47     (1     (1,606     759        11   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

     24,741        24,820        375        72,872        74,051        1,119   

IT PRODUCTS

     89        (505     (7     316        (574     (9

RECONCILING ITEMS

     (796     (441     (7     (2,321     (1,292     (19
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     24,034        23,874        361        70,867        72,185        1,091   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FINANCE EXPENSE

     (810     (1,423     (22     (2,687     (4,298     (65

FINANCE AND OTHER INCOME

     5,035        6,227        94        14,383        17,663        267   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT BEFORE TAX

     28,259        28,678        433        82,563        85,550        1,293   

INCOME TAX EXPENSE

     (6,228     (6,248     (94     (18,369     (18,679     (282
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT FOR THE PERIOD

     22,031        22,430        339        64,194        66,871        1,011   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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 December 31, 2015      Three Months ended December 31, 2015  

IT Services Revenue as per IFRS

   $ 1,838.3      

IT Services Revenue as per IFRS

   $ 1,838.3   

Effect of Foreign currency exchange movement

   $ 19.8      

Effect of Foreign currency exchange movement

   $ 69.9   
  

 

 

       

 

 

 

Non-GAAP Constant Currency IT Services

     

Non-GAAP Constant Currency IT Services

  
Revenue based on exchange rates of previous quarter    $ 1,858.1       Revenue based on exchange rates of comparable quarter in the previous year    $ 1,908.2