UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of October 2016
Commission File Number 001-16139
Wipro Limited
(Exact name of Registrant as specified in its charter)
Not Applicable
(Translation of Registrants name into English)
Karnataka, India
(Jurisdiction of incorporation or organization)
Doddakannelli
Sarjapur Road
Bangalore, Karnataka 560035, India +91-80-2844-0011
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes ☐ No ☒
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
We hereby furnish the Commission with copies of the following information concerning our public disclosures regarding our results of operations for the quarter ended September 30, 2016. The following information shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
On October 21, 2016, we announced our results of operations for the three months ended September 30, 2016. We issued a press release announcing our results under IFRS, copy of which is attached to this Form 6-K as Item 99.1.
On October 21, 2016, we held a press conference to announce our results. The presentation made by the registrant at the press conference is attached to this Form 6-K as Item 99.2.
We placed advertisements in certain Indian newspapers concerning our results of operations for the three months ended September 30, 2016 under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Item 99.3.
We made available on our website the Condensed Consolidated Interim Financial Statements as of and for the three and six months ended September 30, 2016 under IFRS. A copy of such financial statements are attached to this Form 6-K as Item 99.4.
We filed with stock exchanges in India a statement of statutorily audited consolidated financial results for the three and six months ended September 30, 2016 under IFRS. A copy of such financial statements are attached to this Form 6-K as Item 99.5.
We filed with stock exchanges in India a datasheet containing operating metrics for the quarter ended September 30, 2016. A copy of such data sheet is attached to this Form 6-K as Item 99.6.
On October 20, 2016, we issued a press release announcing our definitive agreement to acquire Appirio. The press release is attached to this Form 6-K as Item 99.7. Disclosure made under regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 is attached to this Form 6-K as Item 99.8.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.
WIPRO LIMITED |
/s/ Jatin Pravinchandra Dalal |
Jatin Pravinchandra Dalal |
Chief Financial Officer |
Dated: October 25, 2016
INDEX TO EXHIBITS
Item |
||
99.1 | IFRS Press Release | |
99.2 | Presentation made by the Company at the Press Conference on October 21, 2016 | |
99.3 | Form of Advertisement Placed in Indian Newspapers | |
99.4 | Consolidated Interim Financial Statements under IFRS | |
99.5 | Statutorily Audited Consolidated Financial Results filed with stock exchanges in India | |
99.6 | Data sheet containing operating metrics filed with stock exchanges in India | |
99.7 | Press release announcing our definitive agreement to acquire Appirio | |
99.8 | Disclosure under regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Results for the quarter ended September 30, 2016 under IFRS
Gross Revenues grew 10% YoY
IT Services Segment Revenue in US Dollar terms grew by 7.2% YoY in constant currency
Bangalore, India and East Brunswick, New Jersey, USA October 21, 2016 Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its second quarter ended September 30, 2016.
Highlights of the Results
| Gross Revenues were ₹137.7 billion ($2.1 billion1), an increase of 10% YoY. |
| Net Income2 was ₹20.7 billion ($312 million1), a decline of 8% YoY. |
| Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 0.9% sequentially and grew 7.2% YoY. |
| IT Services Segment Revenue was $1,916.3 million, a sequential decrease of 0.8% and YoY increase of 4.6%. |
| IT Services Segment Revenue in Rupee terms was ₹131.4 billion ($2.0 billion1), an increase of 9% YoY. |
| IT Services Segment Profits3 was ₹23.4 billion ($352 million1), a decrease of 5% YoY. |
| IT Services Margins4 was 17.8% for the quarter, as compared to 17.8% for the quarter ended June 30, 2016. |
Performance for the quarter ended September 30, 2016
We delivered Revenues in constant currency at the top end of our guidance range, said Abidali Z. Neemuchwala, Chief Executive Officer and Member of the Board. I am very excited about Wipros acquisition of Appirio, a leader in cloud applications especially across Salesforce and Workday implementation services. This acquisition will establish Wipros dominance in cloud application services and further strengthen Wipros brand as a Digital Partner of choice.
We maintained margins in Q2 despite the impact of salary increase for an incremental two months due to strong operational improvements in automation-led productivity, offshoring and utilization. said Jatin Dalal, Chief Financial Officer. As we look forward, the demand environment is mixed in a seasonally weak quarter affected by furloughs and lower number of working days.
Outlook for the Quarter ending December 31, 2016
We expect Revenues from our IT Services business to be in the range of $ 1,916 million to $ 1,955 million*.
* | Guidance is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.11, AUD/USD at 0.76, USD/INR at 67.01 and USD/CAD at 1.31. |
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 September 30, 2016, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= ₹66.58. However, the realized exchange rate in our IT Services business segment for the quarter ended September 30, 2016 was US$1= ₹68.55 |
2. | Net Income refers to Profit for the period attributable to equity holders of the Company |
3. | Segment Profit refers to segment results. Effective April 1, 2016, the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items until the fiscal year ended March 31, 2016. Comparative information has been restated to give effect to the same. |
4. | Margins have been computed based on the change as listed in footnote 3. above |
IT Services
The IT Services segment had a headcount of 174,238 as of September 30, 2016.
Wipro has won a multi-year network management product sustenance deal from a Tier-1 network equipment provider. The company has been working with the client to optimize the total cost of ownership, and this end-to-end ownership engagement further strengthens Wipros relationship with the customer.
A global consumer electronics and technology major headquartered in Europe has awarded an IT application managed services deal to Wipro. As part of the project, Wipro will consolidate and optimize the clients IT application managed services through hyper-automation using the Wipro HOLMES Artificial Intelligence Platform. The engagement will further strengthen Wipros existing relationship with the customer.
Wipro has been awarded a three-year IT infrastructure services contract by a prominent Australian oil and gas company with a global presence. The client has chosen Wipro as their strategic partner due to its proven capabilities in the infrastructure services space and expertise in automation. Wipro will also be a partner for the digital transformation of the clients upstream operations.
Wipro has won a multi-year managed services engagement with a large Australian utilities business. The scope of the contract includes Applications, Networks, End User Computing, Service Desk and Data Centre Services. This engagement will see Wipro helping the customer transition to a more scalable and sustainable cost based model, which improves services and functional capabilities through digital initiatives.
Wipro has won a multi-year managed services engagement with a top U.S Department Store Retailer to transform their Quality Centre of Excellence. This deal will enable the client to realize significant savings and achieve quicker Go to Market through transformation initiatives involving quality engineering and Wipro IP-enabled cognitive automation and robots.
Wipro has won a multi-year engagement with The Highland Council, UK to transform their core IT infrastructure and provide tablet devices to school children. This program will empower the Council to provide robust IT services and transform education in schools in the region.
Digital highlights
Service providers in the digital transformation space need to develop a comprehensive set of capabilities to meet the new client demand effectively. In this context, through strategic acquisitions including Designit, investments in Wipro Digital and studios in key client hubs, and a strong partner ecosystem, Wipro has developed unique competencies that integrate technology and domain to establish industry leading digital delivery capabilities, said Peter Bendor-Samuel, CEO, Everest Group.
Wipro will enable a global contract manufacturing company in its journey of implementing the SmartFactory model through advanced automation, machine learning, IoT and data analytics.
A leading provider for electricity distribution, automation and energy management has engaged Wipro to help them develop new business models through the intelligent application of their software and entitlement management systems.
Wipro will enable a biopharmaceutical company transform the online digital experience for its customers. Leveraging expertise from its Digital, Designit, Digital Engineering and Connected Enterprise Services teams, Wipro will deliver a consistent and relevant experience across multiple websites for the companys customers.
A leader in the DIY (Do It Yourself) home space has chosen Wipro and Designit as its partners to help the company define the vision, a new value proposition, product road-map and design products for its Connected Home segment.
Designit was asked by one of the worlds leading ICT solution providers to define and design the next innovative application for smart watches. The goal is to assist with developing realizable next-generation functionalities for the product line management at the clients headquarters in Asia. The client seeks an innovative state-of-the-art customization of Android Wear in regards to application interfaces and the necessary programming.
Wipro has secured a Data Discovery Platform win at a western Australian state government-owned corporation. This program will help the organization understand where their predictive asset maintenance capabilities currently lie, and provide a roadmap to develop their analytics capabilities. Wipros Data Discovery Platform will use the best of breed open source technologies and leverage cognitive capabilities from Wipro HOLMES Artificial Intelligence Platform to bring to life the hidden insights in large and diverse data sets.
We have had more than 10 cloud application wins this quarter and a few of the notable ones are as follows:
| Wipro was selected to implement a cloud based Procure-to-Pay solution for a global leader in branded lifestyle apparel, footwear and accessories. |
| An American Chemicals Conglomerate selected Wipro to define their CRM modernization roadmap using a leading cloud CRM platform. |
| A global marketing services firm has chosen Wipro to manage and execute the campaigns of their customers using leading marketing cloud platforms. |
Delivery Excellence
We wanted a partner who can think global and act local. Wipro has displayed a deep understanding of our business priorities, organization culture and the ability to challenge and innovate the way of executing the business. Wipro is our trusted partner in this journey and our journey will continue with Wipro in the future as well said Serhan Ozhan, CIO, CLK Enerji.
It is key for us in IT to provide consistent and reliable services and we look to Wipro to help us do that. They bring best in class practices to IT that we think well be able to leverage over the coming years. Our experience in dealing with Wipro is that they have always been responsive. We trust them as a partner. They are honest and a very high integrity company said Christopher Krebs, Senior Vice President & CIO, Fruit of the Loom.
Wipro deployed an integrated retail solution across 550 stores for a global retail major enabling central visibility of inventory, price differentials, cash and sales forecast. The retail solution led to the decommissioning of 10 legacy applications and helped reduce stock outage situations by almost 90%, resulting in an increased in-store customer satisfaction.
Awards and accolades
Gartner has identified Wipro Digital as a Representative Provider of all five services - Business Model Innovation, Cybersecurity and Digital Trust, Internet of Things, Industry-Specific Disruptive Technologies and Organizational Culture and Change Management in its Market Guide for Digital Business Consulting Services.*
Wipro has been included in the Dow Jones Sustainability Index (DJSI) World and Emerging Markets for the seventh time in succession.
Wipro has been cited as a Leader by technology global research and advisory firm Forrester Research Inc. in its report, The Forrester Wave: Services Providers for Next-Generation Oracle Application Projects, Q3 2016.
Wipro won the Teradata Epic Award for ICP Collaborative Revenue category at Teradata Partners Conference & Expo 2016. The Collaborative Revenue award recognizes the Integration and Consulting Partners (ICP) who worked with Teradata to influence the largest year-over-year order revenue growth for Teradata technology and services.
Wipro has been named as a Leader in the report IDC MarketScape: Worldwide Oracle Implementation Services 2016 Vendor Assessment.
Wipro has been featured in the Winners Circle by HfS Research in its 2016 blueprint report on Mortgage As-a-Service. HfS said Wipro has one of the most progressive strategies for moving toward Mortgage As-a-Service and is expanding market lead and vision by integrating and building on valuable mortgage industry assets.
Wipro is rated as a Leader in the Everest Group PEAK Matrix reports for Capital Markets BPO, Application Outsourcing and FAO Service providers in 2016.
Wipro has been positioned in the Winners Circle by HfS Research in its 2016 blueprint report on Energy Operations. HfS said Wipro is enabling new business models across the value chain with strong capabilities in Digital, automation and domain expertise.
* | Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartners research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. |
IT Products
| Revenue for the quarter ended September 30, 2016 was ₹7.7 billion ($115 million1). |
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 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 September 30, 2016, 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. U.S. Eastern Time) to discuss our performance for the quarter. The audio from the conference call will be available online through a web-cast and can be accessed at the following link-http://services.choruscall.eu/links/wipro161021.html
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
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) 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 170,000, serving clients 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: +91-80-3991 6450 | ||
pavan.rao@wipro.com | abhishekkumar.jain@wipro.com | vipin.nair1@wipro.com |
Forward-looking statements
The forward-looking statements contained herein represent Wipros beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipros control. Such statements include, but are not limited to, statements regarding Wipros 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 companys 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 September 30, | |||||||||||
2016 | 2016 | 2016 | ||||||||||
Convenience translation into US dollar in millions (unaudited) - Refer footnote 1 on Page 1 |
||||||||||||
ASSETS |
||||||||||||
Goodwill |
101,991 | 101,864 | 1,530 | |||||||||
Intangible assets |
15,841 | 14,479 | 217 | |||||||||
Property, plant and equipment |
64,952 | 69,103 | 1,038 | |||||||||
Derivative assets |
260 | 100 | 2 | |||||||||
Investments |
4,907 | 5,092 | 76 | |||||||||
Non-current tax assets |
11,751 | 11,938 | 179 | |||||||||
Deferred tax assets |
4,286 | 3,530 | 53 | |||||||||
Other non-current assets |
15,828 | 16,773 | 252 | |||||||||
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Total non-current assets |
219,816 | 222,879 | 3,347 | |||||||||
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Inventories |
5,390 | 5,215 | 78 | |||||||||
Trade receivables |
100,976 | 101,170 | 1,520 | |||||||||
Other current assets |
32,894 | 32,245 | 484 | |||||||||
Unbilled revenues |
48,273 | 48,691 | 731 | |||||||||
Investments |
204,244 | 258,499 | 3,883 | |||||||||
Current tax assets |
7,812 | 8,131 | 122 | |||||||||
Derivative assets |
5,549 | 6,746 | 101 | |||||||||
Cash and cash equivalents |
99,049 | 55,167 | 829 | |||||||||
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Total current assets |
504,187 | 515,864 | 7,748 | |||||||||
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TOTAL ASSETS |
724,003 | 738,743 | 11,095 | |||||||||
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EQUITY |
||||||||||||
Share capital |
4,941 | 4,861 | 73 | |||||||||
Share premium |
14,642 | 427 | 6 | |||||||||
Retained earnings |
425,106 | 452,925 | 6,803 | |||||||||
Share based payment reserve |
2,229 | 2,761 | 41 | |||||||||
Other components of equity |
18,242 | 22,353 | 335 | |||||||||
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Equity attributable to the equity holders of the Company |
465,160 | 483,327 | 7,258 | |||||||||
Non-controlling interest |
2,224 | 2,363 | 35 | |||||||||
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Total equity |
467,384 | 485,690 | 7,293 | |||||||||
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LIABILITIES |
||||||||||||
Long - term loans and borrowings |
17,361 | 18,004 | 270 | |||||||||
Deferred tax liabilities |
5,108 | 4,436 | 67 | |||||||||
Derivative liabilities |
119 | 26 | | |||||||||
Non-current tax liabilities |
8,231 | 7,795 | 117 | |||||||||
Other non-current liabilities |
7,225 | 7,269 | 109 | |||||||||
Provisions |
14 | 14 | | |||||||||
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Total non-current liabilities |
38,058 | 37,544 | 563 | |||||||||
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Loans, borrowings and bank overdrafts |
107,860 | 106,600 | 1,601 | |||||||||
Trade payables and accrued expenses |
68,187 | 68,487 | 1,031 | |||||||||
Unearned revenues |
18,076 | 15,053 | 226 | |||||||||
Current tax liabilities |
7,015 | 8,810 | 132 | |||||||||
Derivative liabilities |
2,340 | 2,553 | 38 | |||||||||
Other current liabilities |
13,821 | 12,820 | 193 | |||||||||
Provisions |
1,262 | 1,186 | 18 | |||||||||
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Total current liabilities |
218,561 | 215,509 | 3,239 | |||||||||
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TOTAL LIABILITIES |
256,619 | 253,053 | 3,802 | |||||||||
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TOTAL EQUITY AND LIABILITIES |
724,003 | 738,743 | 11,095 | |||||||||
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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 September 30, | Six Months ended September 30, | |||||||||||||||||||||||
2015 | 2016 | 2016 | 2015 | 2016 | 2016 | |||||||||||||||||||
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 |
125,135 | 137,657 | 2,068 | 247,511 | 273,649 | 4,111 | ||||||||||||||||||
Cost of revenues |
(85,824 | ) | (97,808 | ) | (1,469 | ) | (170,611 | ) | (194,197 | ) | (2,917 | ) | ||||||||||||
Gross profit |
39,311 | 39,849 | 599 | 76,900 | 79,452 | 1,194 | ||||||||||||||||||
Selling and marketing expenses |
(8,708 | ) | (9,614 | ) | (144 | ) | (16,752 | ) | (19,755 | ) | (297 | ) | ||||||||||||
General and administrative expenses |
(6,887 | ) | (8,545 | ) | (128 | ) | (13,780 | ) | (16,144 | ) | (242 | ) | ||||||||||||
Foreign exchange gains/(losses), net |
533 | 1,281 | 19 | 1,863 | 2,265 | 34 | ||||||||||||||||||
Results from operating activities |
24,249 | 22,971 | 346 | 48,231 | 45,818 | 689 | ||||||||||||||||||
Finance expenses |
(1,589 | ) | (1,428 | ) | (21 | ) | (2,875 | ) | (2,764 | ) | (42 | ) | ||||||||||||
Finance and other income |
6,318 | 5,105 | 77 | 11,653 | 10,305 | 155 | ||||||||||||||||||
Profit before tax |
28,978 | 26,648 | 402 | 57,009 | 53,359 | 802 | ||||||||||||||||||
Income tax expense |
(6,515 | ) | (5,909 | ) | (89 | ) | (12,473 | ) | (12,031 | ) | (181 | ) | ||||||||||||
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Profit for the period |
22,463 | 20,739 | 313 | 44,536 | 41,328 | 621 | ||||||||||||||||||
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Attributable to: |
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Equity holders of the company |
22,409 | 20,672 | 312 | 44,326 | 41,190 | 619 | ||||||||||||||||||
Non-controlling interest |
54 | 67 | 1 | 210 | 138 | 2 | ||||||||||||||||||
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Profit for the period |
22,463 | 20,739 | 313 | 44,536 | 41,328 | 621 | ||||||||||||||||||
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Earnings per equity share: |
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Attributable to equity share holders of the company |
||||||||||||||||||||||||
Basic |
9.12 | 8.54 | 0.13 | 18.05 | 16.89 | 0.25 | ||||||||||||||||||
Diluted |
9.10 | 8.52 | 0.13 | 18.01 | 16.84 | 0.25 | ||||||||||||||||||
Weighted average number of equity shares used in computing earnings per equity share |
||||||||||||||||||||||||
Basic |
2,456,285,585 | 2,420,621,137 | 2,420,621,137 | 2,456,223,408 | 2,439,012,817 | 2,439,012,817 | ||||||||||||||||||
Diluted |
2,461,507,934 | 2,426,812,644 | 2,426,812,644 | 2,460,985,436 | 2,445,466,651 | 2,445,466,651 | ||||||||||||||||||
Additional Information |
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Segment Revenue |
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IT Services Business Units |
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BFSI |
32,252 | 33,583 | 503 | 63,273 | 67,213 | 1,011 | ||||||||||||||||||
HLS |
13,746 | 20,883 | 314 | 26,734 | 40,814 | 613 | ||||||||||||||||||
CBU |
19,510 | 20,708 | 311 | 38,210 | 41,433 | 622 | ||||||||||||||||||
ENU |
17,664 | 16,881 | 254 | 35,240 | 34,237 | 514 | ||||||||||||||||||
MNT |
28,146 | 29,463 | 443 | 55,109 | 59,001 | 886 | ||||||||||||||||||
COMM |
9,110 | 9,848 | 148 | 17,635 | 19,760 | 297 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
IT SERVICES TOTAL |
120,428 | 131,366 | 1,973 | 236,201 | 262,458 | 3,943 | ||||||||||||||||||
IT PRODUCTS |
5,442 | 7,666 | 115 | 13,616 | 13,596 | 204 | ||||||||||||||||||
RECONCILING ITEMS |
(202 | ) | (94 | ) | (1 | ) | (443 | ) | (140 | ) | (2 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
125,668 | 138,938 | 2,087 | 249,374 | 275,914 | 4,145 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Segment Result |
||||||||||||||||||||||||
IT Services Business Units |
||||||||||||||||||||||||
BFSI |
6,882 | 6,379 | 96 | 13,829 | 13,373 | 201 | ||||||||||||||||||
HLS |
3,023 | 3,234 | 49 | 5,777 | 6,090 | 91 | ||||||||||||||||||
CBU |
3,238 | 3,584 | 54 | 6,320 | 7,359 | 111 | ||||||||||||||||||
ENU |
3,272 | 3,443 | 52 | 6,859 | 6,468 | 97 | ||||||||||||||||||
MNT |
6,370 | 6,175 | 93 | 12,203 | 12,129 | 182 | ||||||||||||||||||
COMM |
1,554 | 1,594 | 24 | 2,801 | 3,096 | 47 | ||||||||||||||||||
OTHERS |
| | | | ||||||||||||||||||||
UNALLOCATED |
277 | (1,037 | ) | (16 | ) | 808 | (1,874 | ) | (28 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL IT SERVICES |
24,616 | 23,372 | 352 | 48,597 | 46,641 | 701 | ||||||||||||||||||
IT PRODUCTS |
(244 | ) | (298 | ) | (4 | ) | (141 | ) | (666 | ) | (10 | ) | ||||||||||||
RECONCILING ITEMS |
(123 | ) | (103 | ) | (2 | ) | (225 | ) | (157 | ) | (2 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
TOTAL |
24,249 | 22,971 | 346 | 48,231 | 45,818 | 689 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
FINANCE EXPENSE |
(1,589 | ) | (1,428 | ) | (21 | ) | (2,875 | ) | (2,764 | ) | (42 | ) | ||||||||||||
FINANCE AND OTHER INCOME |
6,318 | 5,105 | 77 | 11,653 | 10,305 | 155 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
PROFIT BEFORE TAX |
28,978 | 26,648 | 402 | 57,009 | 53,359 | 802 | ||||||||||||||||||
INCOME TAX EXPENSE |
(6,515 | ) | (5,909 | ) | (89 | ) | (12,473 | ) | (12,031 | ) | (181 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
PROFIT FOR THE PERIOD |
22,463 | 20,739 | 313 | 44,536 | 41,328 | 621 | ||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
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 customers organized by industry verticals. Effective April 1, 2016, we realigned our industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named Communications. The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as Consumer Business Unit industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the Manufacturing and Technology industry vertical. The revised industry verticals are as follows: Finance Solutions (BFSI), Healthcare, Lifesciences & Services (HLS), Consumer (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing & Technology (MNT), Communications (COMM). IT Services segment 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 offerings 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 September 30, 2016 | Three Months ended September 30, 2016 | |||||||||
IT Services Revenue as per IFRS |
$ | 1,916.3 | IT Services Revenue as per IFRS |
$ | 1,916.3 | |||||
Effect of Foreign currency exchange movement |
$ | 32.3 | Effect of Foreign currency exchange movement |
$ | 47.2 | |||||
|
|
|
|
|||||||
Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates |
$ | 1,948.6 | Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates |
$ | 1,963.5 |
Exhibit 99.2
Performance for Quarter ended September 30, 2016
Jatin Dalal
Senior Vice President and Chief Financial Officer
October 21, 2016
© 2016 WIPRO LTD | WWW.WIPRO.COM
Financial Summary for the Quarter Ended September 30, 2016 (IFRS)
Wipro Limited
Q2 17 (Rs crores) QoQ Growth
Revenues 13,766 1.2%
Results from Operating Activities
2,297 0.5% (EBIT)
Revenue of the Company grew 1.2% QoQ
EBIT of the Company grew by 0.5% QoQ
IT Services Segment Revenue was Rs 13,137 crores, an increase of 0.2% QoQ
Gross Cash position was Rs. 31,367 crores or $ 4.71 Billion
Gross Cash is the sum of (i) cash and cash equivalents plus (ii) Investments Current. For detailed reconciliations, please refer slide 10 in appendix 1 crores=10 million
2 © 2016 WIPRO LTD | WWW.WIPRO.COM
Highlights for the quarter
Non-GAAP constant currency IT Services Segment USD Revenue grew 0.9% QoQ at the top end of the guidance range
IT Services Segment Margins was maintained at 17.8% as headwinds in salary increases were offset by strong operational improvements in automation-led productivity, offshoring and utilization improvements.
Gross Utilization has increased by 134 bps to 71.2%.
Digital Eco-system constitutes 19.6% of revenues
Acquired Appirio, a leader in cloud applications across Salesforce and Workday implementation services
For reconciliation of non-GAAP constant currency IT Services USD revenues please refer to slide 10 Segment Profit refers to Segment Results 1 crores= 10 million
3 © 2016 WIPRO LTD | WWW.WIPRO.COM
IT ServicesRevenue Dynamics for Quarter Ended September 30, 2016
Vertical Business units
1. Healthcare, Life Sciences & Services grew 4.3% on a constant currency basis sequentially
2. Energy, Natural Resources & Utilities grew 1.3% on a constant currency basis sequentially
Geographies
1. Americas grew 1.8% on a constant currency basis sequentially
2. Europe grew 0.3% on a constant currency basis sequentially
Service Lines
1. Business Process Service grew 3.3% on a reported currency basis sequentially
2. Product Engineering grew by 0.7% on a reported currency basis sequentially
The growth percentages have been calculated based on USD revenues for the Business Unit/ Service line/ Geography. We have re-classified some portions of work amongst Service lines effective April 1, 2016 and therefore the growth rates (YoY) may not be comparable.
4 © 2016 WIPRO LTD | WWW.WIPRO.COM
Looking ahead
Looking ahead for the quarter ending December 31, 2016
Jul May Aug
We expect the Revenue from our Apr Sep IT Services business to be in the range of
2016-17 $ 1,916 million to $ 1,955 million*.
Oct
Feb
Jan Dec
We expect to consummate the Appirio acquisition in Q3 and hence Revenues from the acquisition is included in our guidance. However, there is variability in terms of exact date of consummation and our guidance incorporates this variability in the range.
* Guidance is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.11, AUD/USD at 0.76, USD/INR at 67.01 and USD/CAD at 1.31
5 © 2016 WIPRO LTD | WWW.WIPRO.COM
Supplemental Data
Key Operating Metrics of IT Services
6 © 2016 WIPRO LTD | WWW.WIPRO.COM
Key Operating Metrics in IT Services for the Quarter ended September, 2016
Particulars Q217 Q117 Q216
Revenue Composition
Communications 7.5% 7.6% 7.6% Finance Solutions 25.5% 25.6% 26.7% Manufacturing & Technology 22.4% 22.5% 23.4% Healthcare, Life Sciences & Services 16.0% 15.3% 11.4% Consumer 15.7% 15.8% 16.2% Energy, Natural Resources & Utilities 12.9% 13.2% 14.7%
Geography Composition
Americas 54.8% 53.5% 53.0% Europe 24.0% 25.4% 25.2% India & Middle East Business 10.4% 10.4% 10.6% APAC & Other Emerging Markets 10.8% 10.7% 11.2%
People related
Headcount 174,238 173,863 168,396
7 © 2016 WIPRO LTD | WWW.WIPRO.COM
Thank You
Jatin Dalal
Senior Vice President & Chief Financial Officer Jatin.Dalal@wipro.com
8 © 2016 WIPRO LTD | WWW.WIPRO.COM
Appendix
9 © 2016 WIPRO LTD | WWW.WIPRO.COM
Reconciliation of Selected GAAP measures to Non-GAAP measures
Reconciliation of Gross Cash Reconciliation of Free Cash Flow
WIPRO LIMITED AND SUBSIDIARIES WIPRO LIMITED AND SUBSIDIARIES (Amounts in INR crores) (Amounts in INR crores)
As of Three months ended September 30, 2016 September 30, 2016
Computation of Gross cash position Profit for the period [A] 2,067 Cash and cash equivalents 5,517
InvestmentsCurrent 25,850 Computation of Free cash flow
Net cash generated from operating activities 2,637
Total 31,367 Add/(deduct) cash inflow/(outflow) on :
Purchase of Property, plant and equipment (695) Proceeds from sale of Property, plant and equipment 12
Free cash flow [B] 1,954 Free cash flow as a percentage of Net income [B/A] 94.5%
Reconciliation of Non-GAAP constant currency Revenue
Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN) Three months ended September 30, 2016 Three months ended September 30, 2016
IT Services Revenue as per IFRS $1,916.3 IT Services Revenue as per IFRS $1,916.3
Effect of Foreign currency exchange movement $ 32.3 Effect of Foreign currency exchange movement $ 47.2 Non-GAAP Constant Currency IT Services Revenue Non-GAAP Constant Currency IT Services Revenue based on previous quarter exchange rates based on exchange rates of comparable period in $ 1,948.6 previous year $1,963.5
10 1 crores=10 million
© 2016 WIPRO LTD | WWW.WIPRO.COM
WIPRO
Applying Thought
Exhibit 99.3
Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore-560035, India
Website: www.wipro.com; Email Id- Info@wipro.com; Tel: +91-80-2844 0011; Fax: +91-80-2844 0054
Wipro Limited
Extract of audited financial results of Wipro Limited and its subsidiaries for the quarter ended September 30, 2016
Consolidated Audited Financial Results of Wipro Limited under IFRS
(in millions, except share and per share data, unless otherwise stated)
Particulars Quarter ended
September 30, 2016 Year to date
September 30, 2016 Quarter ended September 30, 2015
Total income from operations (net) 138,938 275,914 125,668
Net Profit / (Loss) before tax, exceptional and extraordinary items 26,648 53,359 28,978
Net Profit / (Loss) before tax but after exceptional and extraordinary items 26,648 53,359 28,978
Net Profit / (Loss) after tax, exceptional and extraordinary items 20,739 41,328 22,463
Total Comprehensive Income after tax 21,554 45,360 24,291
Equity Share Capital 4,861 4,861 4,940
Reserves excluding Revaluation Reserve 478,466 478,466 427,417
Earnings Per Share (after extraordinary items) (of 2/- each)
Basic:
Diluted:
8.54
8.52
16.89
16.84
9.12
9.10
The audited consolidated interim financial results of the Company for the quarter ended September 30, 2016 have been approved by the Board of Directors of the Company at its meeting held on October 21, 2016. The statutory auditors have expressed an unqualified audit opinion.
Financial Results of Wipro Limited under IND AS
The condensed interim financial results are prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (the Companies Act), as applicable and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.
These financial statements, are prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with Previous GAAP (i.e. Indian GAAP).
Audited Consolidated Financial results under Ind AS
Particulars Quarter ended
September 30, 2016 Year to date
September 30, 2016 Quarter ended September 30, 2015
Total income from operations (net) 138,968 275,944 125,668
Net Profit / (Loss) before tax, exceptional and extraordinary items 26,681 53,392 28,979
Net Profit / (Loss) before tax but after exceptional and extraordinary items 26,681 53,392 28,979
Net Profit / (Loss) after tax, exceptional and extraordinary items 20,771 41,361 22,464
Total Comprehensive Income after tax 21,636 45,372 24,190
Equity Share Capital 4,861 4,861 4,940
Reserves excluding Revaluation Reserve 474,755 474,755 423,716
Earnings Per Share (after extraordinary items ) (of 2/- each)
Basic:
Diluted:
8.55
8.53
16.90
16.86
9.12
9.10
The audited consolidated interim financial results (under Ind AS) of the Company for the quarter ended September 30, 2016 have been approved by the Board of Directors of the Company at its meeting held on October 21, 2016. The statutory auditors have expressed an unqualified audit opinion.
Reconciliation of equity:
As at
March 31, 2016 As at
September 30, 2015 As at
April 1, 2015
Equity under Previous GAAP attributable to
Equity holders of the Company 446,886 416,354 370,920
Non-controlling interest 2,224 1,936 1,646
Total equity under Previous GAAP 449,110 418,290 372,566
Effect of transition to Ind AS
Impact of application of Ind AS 103 to past business combinations 9,930
10,541 11,253
Fair valuation of investments 2,135 1,909 1,338
Provision for expected credit loss (1,404) (1,323) (1,243)
Dividend and tax on dividend 2,959 - 20,656
Incremental deferred tax recognized, net 543 864 454
Others 387 311 260
Equity under Ind AS 463,660 430,592 405,284
Attributable to
Equity holders of the Company 461,436 428,656 403,638
Non-controlling interest 2,224 1,936 1,646
Reconciliation of Net Profit:
Three months ended
September 30, 2015
Net profit under Previous GAAP attributable to
Equity holders of the Company 22,496
Non-controlling interest 54
Net profit under Previous GAAP 22,550
Effect of transition to Ind AS
Impact of retrospective application of Ind AS 103 (347)
Employee benefits 86
Share based compensation expense 116
Expected credit loss recognized (40)
Change in fair valuation of investments 134
Tax impact on above, net 61
Others (96)
Profit for the period under Ind AS attributable to 22,464
Equity holders of the Company 22,410
Non-controlling interest 54
Standalone Audited Financial Results of Wipro Limited under Ind AS
Particulars Quarter ended
September 30, 2016 Year to date
September 30, 2016 Quarter ended September 30, 2015
Total income from operations (net) 114,538 230,413 110,369
Net Profit / (Loss) before tax, exceptional and extraordinary items 25,147 51,098 27,663
Net Profit / (Loss) before tax but after exceptional and extraordinary items 25,147 51,098 27,663
Net Profit / (Loss) after tax, exceptional and extraordinary items 19,321 39,398 21,531
Total Comprehensive Income after tax 21,546 43,290 21,435
Equity Share Capital 4,861 4,861 4,940
Reserves excluding Revaluation Reserve 423,614 423,614 380,917
Earnings Per Share (after extraordinary items) (of 2/- each)
Basic:
Diluted:
7.98
7.96
16.15
16.11
8.77
8.75
The audited interim financial results of the Company for the quarter ended September 30, 2016 have been approved by the Board of Directors of the Company at its meeting held on October 21, 2016. The statutory auditors have expressed an unqualified audit opinion.
Reconciliations between Previous GAAP and Ind AS
Equity reconciliations
As at As at As at
Mar 312016 September 302015 Apr 12015
As reported under Previous GAAP 409,052 385,519 346,216
Effect of transition to IND AS
Proposed Dividend (incl Dividend distribution tax) 2,974 - 20,739
Impact on adoption of Ind AS 109
Provision for expected credit loss (1,347) (1,266) (1,186)
Change in fair valuation of investments 2,135 1,909 1,338
Intangible amortization (368) (335) (302)
Tax impact (337) 10 (475)
Others 148 20 55
Equity as per Ind AS 412,257 385,857 366,385
Net Profit
Three months ended
September 30, 2015
Net Profit under Previous GAAP 21,420
Ind AS Adjustments
Employee benefits 80
Share based compensation expense 116
Depreciation, amortization and impairment change (16)
Change in fair valuation of investments 47
Expected credit loss recognized (40)
Tax impact 30
Others (106)
Net Profit under Ind AS 21,531
Notes:
The above is an extract of the detailed format of Quarterly Financial Results filed with the Stock Exchanges under Regulation 33 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015. The full format of the Quarterly Financial Results are available on the Bombay Stock Exchange website (URL: www.bseindia.com/corporates), the National Stock Exchange website (URL: www.nseindia.com/corporates) and on the Companys website (URL: www.wipro.com).
On October 20, 2016 the Company entered in to definitive agreement to acquire Appirio Inc., a global cloud services company for a consideration of US $ 500 million. The acquisition will strengthen Wipros cloud transformation practices.
By Order of the Board, Wipro Limited
Wipro Limited
For Wipro Ltd. Regd. Office: Doddakanneli,
Place: Bangalore Azim H Premji Sarjapur Road, Bangalore- 560035
Date: October 21, 2016 Chairman & Managing Director www.wipro.com
Exhibit 99.4
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS UNDER IFRS
AS OF AND FOR THE THREE AND SIX MONTHS ENDED
SEPTEMBER 30, 2016
1
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
(₹ in millions, except share and per share data, unless otherwise stated)
Notes | As of March 31, | As of September 30, | ||||||||||||||
2016 | 2016 | 2016 | ||||||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) |
||||||||||||||||
ASSETS |
||||||||||||||||
Goodwill |
5 | 101,991 | 101,864 | 1,530 | ||||||||||||
Intangible assets |
5 | 15,841 | 14,479 | 217 | ||||||||||||
Property, plant and equipment |
4 | 64,952 | 69,103 | 1,038 | ||||||||||||
Derivative assets |
13,14 | 260 | 100 | 2 | ||||||||||||
Investments |
7 | 4,907 | 5,092 | 76 | ||||||||||||
Non-current tax assets |
11,751 | 11,938 | 179 | |||||||||||||
Deferred tax assets |
4,286 | 3,530 | 53 | |||||||||||||
Other non-current assets |
10 | 15,828 | 16,773 | 252 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total non-current assets |
219,816 | 222,879 | 3,347 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Inventories |
8 | 5,390 | 5,215 | 78 | ||||||||||||
Trade receivables |
100,976 | 101,170 | 1,520 | |||||||||||||
Other current assets |
10 | 32,894 | 32,245 | 484 | ||||||||||||
Unbilled revenues |
48,273 | 48,691 | 731 | |||||||||||||
Investments |
7 | 204,244 | 258,499 | 3,883 | ||||||||||||
Current tax assets |
7,812 | 8,131 | 122 | |||||||||||||
Derivative assets |
13,14 | 5,549 | 6,746 | 101 | ||||||||||||
Cash and cash equivalents |
9 | 99,049 | 55,167 | 829 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total current assets |
504,187 | 515,864 | 7,748 | |||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL ASSETS |
724,003 | 738,743 | 11,095 | |||||||||||||
|
|
|
|
|
|
|||||||||||
EQUITY |
||||||||||||||||
Share capital |
4,941 | 4,861 | 73 | |||||||||||||
Share premium |
14,642 | 427 | 6 | |||||||||||||
Retained earnings |
425,106 | 452,925 | 6,803 | |||||||||||||
Share based payment reserve |
2,229 | 2,761 | 41 | |||||||||||||
Other components of equity |
18,242 | 22,353 | 335 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Equity attributable to the equity holders of the Company |
465,160 | 483,327 | 7,258 | |||||||||||||
Non-controlling interest |
2,224 | 2,363 | 35 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total equity |
467,384 | 485,690 | 7,293 | |||||||||||||
|
|
|
|
|
|
|||||||||||
LIABILITIES |
||||||||||||||||
Long - term loans and borrowings |
11 | 17,361 | 18,004 | 270 | ||||||||||||
Deferred tax liabilities |
5,108 | 4,436 | 67 | |||||||||||||
Derivative liabilities |
13,14 | 119 | 26 | | ||||||||||||
Non-current tax liabilities |
8,231 | 7,795 | 117 | |||||||||||||
Other non-current liabilities |
12 | 7,225 | 7,269 | 109 | ||||||||||||
Provisions |
12 | 14 | 14 | | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total non-current liabilities |
38,058 | 37,544 | 563 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Loans, borrowings and bank overdrafts |
11 | 107,860 | 106,600 | 1,601 | ||||||||||||
Trade payables and accrued expenses |
68,187 | 68,487 | 1,031 | |||||||||||||
Unearned revenues |
18,076 | 15,053 | 226 | |||||||||||||
Current tax liabilities |
7,015 | 8,810 | 132 | |||||||||||||
Derivative liabilities |
13,14 | 2,340 | 2,553 | 38 | ||||||||||||
Other current liabilities |
12 | 13,821 | 12,820 | 193 | ||||||||||||
Provisions |
12 | 1,262 | 1,186 | 18 | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total current liabilities |
218,561 | 215,509 | 3,239 | |||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL LIABILITIES |
256,619 | 253,053 | 3,802 | |||||||||||||
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL EQUITY AND LIABILITIES |
724,003 | 738,743 | 11,095 | |||||||||||||
|
|
|
|
|
|
The accompanying notes form an integral part of these condensed consolidated interim financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP Chartered Accountants |
Azim H Premji Chairman & Managing Director |
N Vaghul Director |
T K Kurien Executive Vice-Chairman | |||
Jamil Khatri Partner Membership No. 102527 |
Jatin Pravinchandra Dalal Chief Financial Officer |
M Sanaulla Khan Company Secretary |
||||
Mumbai October 21, 2016 |
Bangalore October 21, 2016 |
2
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME
(₹ in millions, except share and per share data, unless otherwise stated)
Three months ended September 30, | Six months ended September 30, | |||||||||||||||||||||||||||
Notes | 2015 | 2016 | 2016 | 2015 | 2016 | 2016 | ||||||||||||||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) |
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) |
|||||||||||||||||||||||||||
Gross revenues |
17 | 125,135 | 137,657 | 2,068 | 247,511 | 273,649 | 4,111 | |||||||||||||||||||||
Cost of revenues |
18 | (85,824 | ) | (97,808 | ) | (1,469 | ) | (170,611 | ) | (194,197 | ) | (2,917 | ) | |||||||||||||||
Gross profit |
39,311 | 39,849 | 599 | 76,900 | 79,452 | 1,194 | ||||||||||||||||||||||
Selling and marketing expenses |
18 | (8,708 | ) | (9,614 | ) | (144 | ) | (16,752 | ) | (19,755 | ) | (297 | ) | |||||||||||||||
General and administrative expenses |
18 | (6,887 | ) | (8,545 | ) | (128 | ) | (13,780 | ) | (16,144 | ) | (242 | ) | |||||||||||||||
Foreign exchange gains/(losses), net |
533 | 1,281 | 19 | 1,863 | 2,265 | 34 | ||||||||||||||||||||||
Results from operating activities |
24,249 | 22,971 | 346 | 48,231 | 45,818 | 689 | ||||||||||||||||||||||
Finance expenses |
19 | (1,589 | ) | (1,428 | ) | (21 | ) | (2,875 | ) | (2,764 | ) | (42 | ) | |||||||||||||||
Finance and other income |
20 | 6,318 | 5,105 | 77 | 11,653 | 10,305 | 155 | |||||||||||||||||||||
Profit before tax |
28,978 | 26,648 | 402 | 57,009 | 53,359 | 802 | ||||||||||||||||||||||
Income tax expense |
16 | (6,515 | ) | (5,909 | ) | (89 | ) | (12,473 | ) | (12,031 | ) | (181 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Profit for the period |
22,463 | 20,739 | 313 | 44,536 | 41,328 | 621 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Attributable to: |
||||||||||||||||||||||||||||
Equity holders of the Company |
22,409 | 20,672 | 312 | 44,326 | 41,190 | 619 | ||||||||||||||||||||||
Non-controlling interest |
54 | 67 | 1 | 210 | 138 | 2 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Profit for the period |
22,463 | 20,739 | 313 | 44,536 | 41,328 | 621 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Earnings per equity share: |
21 | |||||||||||||||||||||||||||
Attributable to equity share holders of the Company |
||||||||||||||||||||||||||||
Basic |
9.12 | 8.54 | 0.13 | 18.05 | 16.89 | 0.25 | ||||||||||||||||||||||
Diluted |
9.10 | 8.52 | 0.13 | 18.01 | 16.84 | 0.25 | ||||||||||||||||||||||
Weighted average number of equity shares used in computing earnings per equity share |
||||||||||||||||||||||||||||
Basic |
2,456,285,585 | 2,420,621,137 | 2,420,621,137 | 2,456,223,408 | 2,439,012,817 | 2,439,012,817 | ||||||||||||||||||||||
Diluted |
2,461,507,934 | 2,426,812,644 | 2,426,812,644 | 2,460,985,436 | 2,445,466,651 | 2,445,466,651 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP | Azim H Premji | N Vaghul | T K Kurien | |||
Chartered Accountants Firms Registration No: 101248W/W- 100022 |
Chairman & Managing Director |
Director | Executive Vice-Chairman | |||
Jamil Khatri | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 102527 | ||||||
Mumbai | Bangalore | |||||
October 21, 2016 | October 21, 2016 |
3
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
(₹ in millions, except share and per share data, unless otherwise stated)
Three months ended September 30, | Six months ended September 30, | |||||||||||||||||||||||||||
Notes | 2015 | 2016 | 2016 | 2015 | 2016 | 2016 | ||||||||||||||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) |
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) |
|||||||||||||||||||||||||||
Profit for the period |
22,463 | 20,739 | 312 | 44,536 | 41,328 | 621 | ||||||||||||||||||||||
Items that will not be reclassified to profit or loss |
||||||||||||||||||||||||||||
Defined benefit plan actuarial gains/(losses) |
(64 | ) | 8 | | (723 | ) | 80 | 1 | ||||||||||||||||||||
Net change in fair value of financial instruments through OCI |
130 | | | 130 | | | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
66 | 8 | | (593 | ) | 80 | 1 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Items that may be reclassified subsequently to profit or loss |
||||||||||||||||||||||||||||
Foreign currency translation differences |
15 | 1,924 | (1,410 | ) | (21 | ) | 3,527 | 140 | 2 | |||||||||||||||||||
Net change in fair value of cash flow hedges |
13,16 | (348 | ) | 1,645 | 25 | (2,347 | ) | 2,615 | 39 | |||||||||||||||||||
Net change in fair value of financial instruments through OCI |
7,16 | 186 | 572 | 9 | 237 | 1,197 | 18 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1,762 | 807 | 13 | 1,417 | 3,952 | 59 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total other comprehensive income, net of taxes |
1,828 | 815 | 13 | 824 | 4,032 | 60 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total comprehensive income for the period |
24,291 | 21,554 | 325 | 45,360 | 45,360 | 681 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Attributable to: |
||||||||||||||||||||||||||||
Equity holders of the Company |
24,182 | 21,509 | 324 | 45,070 | 45,221 | 679 | ||||||||||||||||||||||
Non-controlling interest |
109 | 45 | 1 | 290 | 139 | 2 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
24,291 | 21,554 | 325 | 45,360 | 45,360 | 681 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes form an integral part of these condensed consolidated interim financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP Chartered Accountants Firms Registration No: 101248W/W- 100022 |
Azim H Premji Chairman & Managing Director |
N Vaghul Director |
T K Kurien Executive Vice-Chairman | |||
Jamil Khatri Partner Membership No. 102527 |
Jatin Pravinchandra Dalal Chief Financial Officer |
M Sanaulla Khan Company Secretary |
||||
Mumbai October 21, 2016 |
Bangalore October 21, 2016 |
4
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
(₹ in millions, except share and per share data, unless otherwise stated)
Other components of equity | Equity attributable to the equity holders of the Company |
|||||||||||||||||||||||||||||||||||||||||||
Particulars |
No. of Shares | Share capital |
Share premium |
Retained earnings |
Share based payment reserve |
Foreign currency translation reserve |
Cash flow hedging reserve |
Other reserves |
Non-controlling interest |
Total equity | ||||||||||||||||||||||||||||||||||
As at April 1, 2015 |
2,469,043,038 | 4,937 | 14,031 | 372,248 | 1,312 | 11,249 | 3,550 | 655 | 407,982 | 1,646 | 409,628 | |||||||||||||||||||||||||||||||||
Adjustment on adoption of IFRS 9 (net of tax) |
| | | (782 | ) | | | | (31 | ) | (813 | ) | | (813 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted balances as at April 1, 2015 |
2,469,043,038 | 4,937 | 14,031 | 371,466 | 1,312 | 11,249 | 3,550 | 624 | 407,169 | 1,646 | 408,815 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total comprehensive income for the period |
||||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
| | | 44,326 | | | | | 44,326 | 210 | 44,536 | |||||||||||||||||||||||||||||||||
Other comprehensive income |
| | | | | 3,447 | (2,347 | ) | (356 | ) | 744 | 80 | 824 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total comprehensive income for the period |
| | | 44,326 | | 3,447 | (2,347 | ) | (356 | ) | 45,070 | 290 | 45,360 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Transaction with owners of the company, recognized directly in equity |
||||||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners of the Company |
||||||||||||||||||||||||||||||||||||||||||||
Issue of equity shares on exercise of options |
851,170 | 3 | 304 | | (304 | ) | | | | 3 | | 3 | ||||||||||||||||||||||||||||||||
Dividends |
| | | (20,701 | ) | | | | | (20,701 | ) | | (20,701 | ) | ||||||||||||||||||||||||||||||
Compensation cost related to employee share based payment transactions |
| | | 48 | 768 | | | | 816 | | 816 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
851,170 | 3 | 304 | (20,653 | ) | 464 | | | | (19,882 | ) | | (19,882 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
As at September 30, 2015 |
2,469,894,208 | 4,940 | 14,335 | 395,139 | 1,776 | 14,696 | 1,203 | 268 | 432,357 | 1,936 | 434,293 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Convenience translation into US $ in million (Unaudited) Refer note 2(iv) |
75 | 219 | 6,033 | 27 | 224 | 18 | 4 | 6,600 | 30 | 6,629 |
5
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
(₹ in millions, except share and per share data, unless otherwise stated)
Other components of equity | Equity attributable to the equity holders of the Company |
|||||||||||||||||||||||||||||||||||||||||||
Particulars |
No. of Shares* | Share capital |
Share premium |
Retained earnings |
Share based payment reserve |
Foreign currency translation reserve |
Cash flow hedging reserve |
Other reserves |
Non-controlling interest |
Total equity | ||||||||||||||||||||||||||||||||||
As at April 1, 2016 |
2,470,713,290 | 4,941 | 14,642 | 425,735 | 2,229 | 16,116 | 1,910 | 505 | 466,078 | 2,224 | 468,302 | |||||||||||||||||||||||||||||||||
Adjustment on adoption of IFRS 9 (net of tax) |
| | | (629 | ) | | | | (289 | ) | (918 | ) | | (918 | ) | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Adjusted balances as at April 1, 2016 |
2,470,713,290 | 4,941 | 14,642 | 425,106 | 2,229 | 16,116 | 1,910 | 216 | 465,160 | 2,224 | 467,384 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total comprehensive income for the period |
||||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
| | | 41,190 | | | | | 41,190 | 138 | 41,328 | |||||||||||||||||||||||||||||||||
Other comprehensive income |
| | | | | 139 | 2,615 | 1,277 | 4,031 | 1 | 4,032 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total comprehensive income for the period |
| | | 41,190 | | 139 | 2,615 | 1,277 | 45,221 | 139 | 45,360 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Transaction with owners of the Company, recognized directly in equity |
||||||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners of the Company |
||||||||||||||||||||||||||||||||||||||||||||
Issue of equity shares on exercise of options |
88,526 | ^ | 39 | | (39 | ) | | | | | | | ||||||||||||||||||||||||||||||||
Issue of shares by controlled trust on exercise of options* |
| | | 271 | (271 | ) | | | | | | | ||||||||||||||||||||||||||||||||
Buyback of equity shares # |
(40,000,000 | ) | (80 | ) | (14,254 | ) | (10,746 | ) | | | | 80 | (25,000 | ) | | (25,000 | ) | |||||||||||||||||||||||||||
Dividends |
| | | (2,911 | ) | | | | | (2,911 | ) | | (2,911 | ) | ||||||||||||||||||||||||||||||
Compensation cost related to employee share based payment transactions |
| | | 15 | 842 | | | | 857 | | 857 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
(39,911,474 | ) | (80 | ) | (14,215 | ) | (13,371 | ) | 532 | | | 80 | (27,054 | ) | | (27,054 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|||||||||||||||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
As at September 30, 2016 |
2,430,801,816 | 4,861 | 427 | 452,925 | 2,761 | 16,255 | 4,525 | 1,573 | 483,327 | 2,363 | 485,690 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Convenience translation into US $ in million (Unaudited) Refer note 2(iv) |
73 | 6 | 6,803 | 41 | 243 | 68 | 24 | 7,258 | 35 | 7,293 |
* | Includes 14,829,824 and 14,051,976 treasury shares as of March 31, 2016 and September 30, 2016, respectively. During the period 777,848 shares have been issued by the controlled trust on exercise of options. |
# | Refer note 27 |
^ | Value is less than 1 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP Chartered Accountants Firms Registration No: 101248W/W- 100022 |
Azim H Premji Chairman & Managing Director |
N Vaghul Director |
T K Kurien Executive Vice-Chairman | |||
Jamil Khatri Partner Membership No. 102527 |
Jatin Pravinchandra Dalal Chief Financial Officer |
M Sanaulla Khan Company Secretary |
||||
Mumbai October 21, 2016 |
Bangalore October 21, 2016 |
6
WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
(₹ in millions, except share and per share data, unless otherwise stated)
Six months ended September 30, | ||||||||||||
2015 | 2016 | 2016 | ||||||||||
Translation into US$ in millions (Unaudited) Refer note 2(iv) |
||||||||||||
Cash flows from operating activities: |
||||||||||||
Profit for the period |
44,536 | 41,328 | 621 | |||||||||
Adjustments: |
||||||||||||
(Gain)/ loss on sale of property, plant and equipment and intangible assets, net |
(6 | ) | 143 | 2 | ||||||||
Depreciation and amortization |
6,897 | 9,514 | 143 | |||||||||
Exchange loss, net |
2,317 | 2,250 | 34 | |||||||||
Gain on sale of investments, net |
(1,251 | ) | (812 | ) | (12 | ) | ||||||
Share based compensation expense |
782 | 831 | 12 | |||||||||
Income tax expense |
12,478 | 12,031 | 181 | |||||||||
Dividend and interest (income)/expenses, net |
(9,691 | ) | (8,538 | ) | (128 | ) | ||||||
Changes in operating assets and liabilities; net of effects from acquisitions |
||||||||||||
Trade receivables |
(4,663 | ) | (187 | ) | (3 | ) | ||||||
Unbilled revenue |
(5,305 | ) | (367 | ) | (6 | ) | ||||||
Inventories |
(722 | ) | 175 | 3 | ||||||||
Other assets |
1,394 | 41 | 1 | |||||||||
Trade payables, accrued expenses, other liabilities and provisions |
2,829 | (566 | ) | (9 | ) | |||||||
Unearned revenue |
491 | (3,048 | ) | (46 | ) | |||||||
|
|
|
|
|
|
|||||||
Cash generated from operating activities before taxes |
50,086 | 52,795 | 793 | |||||||||
|
|
|
|
|
|
|||||||
Income taxes paid, net |
(12,464 | ) | (11,992 | ) | (180 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash generated from operating activities |
37,622 | 40,803 | 613 | |||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities: |
||||||||||||
Purchase of property, plant and equipment |
(7,498 | ) | (11,632 | ) | (175 | ) | ||||||
Proceeds from sale of property, plant and equipment |
130 | 168 | 3 | |||||||||
Purchase of investments |
(465,235 | ) | (399,995 | ) | (6,008 | ) | ||||||
Proceeds from sale of investments |
376,545 | 348,262 | 5,231 | |||||||||
Impact of investment hedging activities, net |
(99 | ) | | | ||||||||
Proceeds on adjustment of purchase consideration for business combination |
| 114 | 2 | |||||||||
Payment for business acquisitions, net of cash acquired |
(4,089 | ) | | | ||||||||
Interest received |
8,353 | 9,850 | 148 | |||||||||
Dividend received |
54 | 77 | 1 | |||||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities |
(91,839 | ) | (53,156 | ) | (798 | ) | ||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from issuance of equity shares/shares pending allotment |
3 | ^ | | |||||||||
Repayment of loans and borrowings |
(62,648 | ) | (39,191 | ) | (589 | ) | ||||||
Proceeds from loans and borrowings |
76,074 | 34,933 | 525 | |||||||||
Payment for buy back of shares |
| (25,000 | ) | | ||||||||
Interest paid on loans and borrowings |
(660 | ) | (874 | ) | (13 | ) | ||||||
Payment of cash dividend (including dividend tax thereon) |
(20,701 | ) | (2,911 | ) | (44 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash used in financing activities |
(7,932 | ) | (33,043 | ) | (121 | ) | ||||||
|
|
|
|
|
|
|||||||
Net (decrease) in cash and cash equivalents during the period |
(62,149 | ) | (45,396 | ) | (306 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents |
529 | 355 | 5 | |||||||||
Cash and cash equivalents at the beginning of the period |
158,713 | 98,392 | 1,478 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents at the end of the period (Note 9) |
97,093 | 53,351 | 1,177 | |||||||||
|
|
|
|
|
|
^ | Value is less than ₹1 |
The accompanying notes form an integral part of these condensed consolidated interim financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP Chartered Accountants Firms Registration No: 101248W/W- 100022 |
Azim H Premji Chairman & Managing Director |
N Vaghul Director |
T K Kurien Executive Vice-Chairman | |||
Jamil Khatri Partner Membership No. 102527 |
Jatin Pravinchandra Dalal Chief Financial Officer |
M Sanaulla Khan Company Secretary |
||||
Mumbai October 21, 2016 |
Bangalore October 21, 2016 |
7
WIPRO LIMITED AND SUBSIDIARIES
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(₹ in millions, except share and per share data, unless otherwise stated)
1. | The Company overview |
Wipro Limited (Wipro or the Parent Company), together with its subsidiaries (collectively, the Company or the Group) is a leading India based provider of IT Services, including Business Process Services (BPS), globally.
Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore 560 035, Karnataka, India. Wipro has its primary listing with Bombay Stock Exchange and National Stock Exchange in India. The Companys American Depository Shares representing equity shares are also listed on the New York Stock Exchange. These condensed consolidated interim financial statements were authorized for issue by the Companys Board of Directors on October 21, 2016.
2. | Basis of preparation of financial statements |
(i) | Statement of compliance |
These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB). Selected explanatory notes are included to explain events and transactions that are significant to understand the changes in financial position and performance of the Company since the last annual consolidated financial statements as at and for the year ended March 31, 2016. These condensed consolidated interim financial statements do not include all the information required for full annual financial statements prepared in accordance with IFRS.
(ii) | Basis of preparation |
These condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting.
The condensed consolidated interim financial statements correspond to the classification provisions contained in IAS 1(revised), Presentation of Financial Statements. For clarity, various items are aggregated in the statements of income and statements of financial position. These items are disaggregated separately in the notes, where applicable. The accounting policies have been consistently applied to all periods presented in these condensed consolidated interim financial statements.
All amounts included in the condensed consolidated interim financial statements are reported in millions of Indian rupees (₹ in millions) except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
(iii) | Basis of measurement |
The condensed consolidated interim financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items that have been measured at fair value as required by relevant IFRS:
a. | Derivative financial instruments; |
b. | Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss; |
c. | The defined benefit asset/ (liability) is recognised at the present value of the defined benefit obligation less fair value of plan assets; and |
d. | Contingent consideration. |
8
(iv) | Convenience translation (unaudited) |
The accompanying condensed consolidated interim financial statements have been prepared and reported in Indian rupees, the national currency of India. Solely for the convenience of the readers, the condensed consolidated interim financial statements as of and for the six months ended September 30, 2016, have been translated into United States dollars at the certified foreign exchange rate of $ 1 = ₹ 66.58 (March 31, 2016: $ 1 = ₹ 66.25), as published by Federal Reserve Board of Governors on September 30, 2016. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollars at such a rate or any other rate.
(v) | Use of estimates and judgment |
The preparation of the condensed consolidated interim financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the condensed consolidated interim financial statements is included in the following notes:
a) | Revenue recognition: The Company uses the percentage of completion method using the input (cost expended) method to measure progress towards completion in respect of fixed price contracts. Percentage of completion method accounting relies on estimates of total expected contract revenue and costs. This method is followed when reasonably dependable estimates of the revenues and costs applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labor costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognized revenue and profit are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable. |
b) | Goodwill: Goodwill is tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of the cash generating unit is less than its carrying value. The recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The calculation involves use of significant estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions. |
c) | Income taxes: The major tax jurisdictions for the Company are India and the United States of America. Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods. |
d) | Deferred taxes: Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those temporary differences and tax loss carry-forwards become deductible. The Company considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. |
e) | Business combinations: In accounting for business combinations, judgment is required in identifying whether an identifiable intangible asset is to be recorded separately from goodwill. Additionally, estimating the acquisition date fair value of the identifiable assets acquired, and liabilities and contingent consideration assumed involves management judgment. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management. Changes in these judgments, estimates, and assumptions can materially affect the results of operations. |
9
f) | Expected credit losses on financial assets: On application of IFRS 9, the impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Companys past history, customers credit-worthiness, existing market conditions as well as forward looking estimates at the end of each reporting period. |
g) | Measurement of fair value of non-marketable equity investments: These instruments are initially recorded at cost and subsequently measured at fair value. Fair value of investments is determined using the market and income approaches. The market approach includes the use of financial metrics and ratios of comparable companies, such as revenue, earnings, comparable performance multiples, recent financial rounds and the level of marketability of the investments. The selection of comparable companies requires management judgment and is based on a number of factors, including comparable company sizes, growth rates, and development stages. The income approach includes the use of discounted cash flow model, which requires significant estimates regarding the investees revenue, costs, and discount rates based on the risk profile of comparable companies. Estimates of revenue and costs are developed using available historical and forecast data. |
h) | Other estimates: The share based compensation expense is determined based on the Companys estimate of equity instruments that will eventually vest. |
3. | Significant accounting policies |
Please refer to the Companys Annual Report for the year ended March 31, 2016 for a discussion of the Companys other critical accounting policies.
The Company has early adopted IFRS 9 effective April 1, 2016, with retrospective application. Accordingly, the policy for financial instruments as presented in the Companys Annual Report is amended as under:
Financial instruments:
a) | Non-derivative financial instruments: |
Non derivative financial instruments consist of:
| financial assets, which include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances, investments in equity and debt securities and eligible current and non-current assets; |
| financial liabilities, which include long and short-term loans and borrowings, bank overdrafts, trade payables, eligible current and non-current liabilities. |
Non derivative financial instruments are recognized initially at fair value. Financial assets are derecognized when substantial risks and rewards of ownership of the financial asset have been transferred. In cases where substantial risks and rewards of ownership of the financial assets are neither transferred nor retained, financial assets are derecognized only when the Company has not retained control over the financial asset.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below:
A. Cash and cash equivalents
The Companys cash and cash equivalents consist of cash on hand and in banks and demand deposits with banks, which can be withdrawn at any time, without prior notice or penalty on the principal.
For the purposes of the cash flow statement, cash and cash equivalents include cash on hand, in banks and demand deposits with banks, net of outstanding bank overdrafts that are repayable on demand and are considered part of the Companys cash management system. In the consolidated statement of financial position, bank overdrafts are presented under borrowings within current liabilities.
10
B. Investments
Financial instruments measured at amortised cost:
Debt instruments that meet the following criteria are measured at amortized cost (except for debt instruments that are designated at fair value through Profit or Loss (FVTPL) on initial recognition):
| the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and |
| the contractual terms of the instrument give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding. |
Financial instruments measured at fair value through other comprehensive income (FVTOCI):
Debt instruments that meet the following criteria are measured at fair value through other comprehensive income (FVTOCI) (except for debt instruments that are designated at fair value through Profit or Loss (FVTPL) on initial recognition):
| the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial asset; and |
| the contractual terms of the instrument give rise on specified dates to cash flows that are solely payment of principal and interest on the principal amount outstanding. |
Interest income is recognized in statement of income for FVTOCI debt instruments. Other changes in fair value of FVTOCI financial assets are recognized in other comprehensive income. When the investment is disposed of, the cumulative gain or loss previously accumulated in reserves is reclassified to statement of income.
Financial instruments measured at fair value through profit or loss (FVTPL):
Instruments that do not meet the amortised cost or FVTOCI criteria are measured at FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any gains or losses arising on re-measurement recognized in statement of income. The gain or loss on disposal is recognized in statement of income.
Interest income is recognized in statement of income for FVTPL debt instruments. Dividend on financial assets at FVTPL is recognized when the Groups right to receive dividend is established.
Investments in equity instruments designated to be classified as FVTOCI:
The Company carries certain equity instruments which are not held for trading. The Company has elected the FVTOCI irrevocable option for these instruments. Movements in fair value of these investments are recognized in other comprehensive income and the gain or loss is not reclassified to statement of income on disposal of these investments. Dividends from these investments are recognized in statement of income when the Companys right to receive dividends is established.
C. Other financial assets:
Other financial assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as non-current assets. These are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less any impairment losses. These comprise trade receivables, unbilled revenues, cash and cash equivalents and other assets.
11
D. Trade and other payables
Trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest method. For these financial instruments, the carrying amounts approximate fair value due to the short term maturity of these instruments.
b) | Derivative financial instruments |
The Company is exposed to foreign currency fluctuations on foreign currency assets, liabilities, net investment in foreign operations and forecasted cash flows denominated in foreign currency.
The Company limits the effect of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments where the counterparty is primarily a bank.
Derivatives are recognized and measured at fair value. Attributable transaction costs are recognized in statement of income as cost.
Subsequent to initial recognition, derivative financial instruments are measured as described below:
A. Cash flow hedges
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized in other comprehensive income and held in cash flow hedging reserve, net of taxes, a component of equity, to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognized in the statement of income and reported within foreign exchange gains/(losses), net within results from operating activities. If the hedging instrument no longer meets the criteria for hedge accounting, then hedge accounting is discontinued prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the hedge was effective remains in cash flow hedging reserve until the forecasted transaction occurs. The cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the statement of income upon the occurrence of the related forecasted transaction. If the forecasted transaction is no longer expected to occur, such cumulative balance is immediately recognized in the statement of income.
B. Hedges of net investment in foreign operations
The Company designates derivative financial instruments as hedges of net investments in foreign operations. The Company has also designated a foreign currency denominated borrowing as a hedge of net investment in foreign operations. Changes in the fair value of the derivative hedging instruments and gains/losses on translation or settlement of foreign currency denominated borrowings designated as a hedge of net investment in foreign operations are recognized in other comprehensive income and presented within equity in the FCTR to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognized in the statement of income and reported within foreign exchange gains/(losses), net within results from operating activities.
C. Others
Changes in fair value of foreign currency derivative instruments neither designated as cash flow hedges nor hedges of net investment in foreign operations are recognized in the statement of income and reported within foreign exchange gains, net within results from operating activities.
Changes in fair value and gains/(losses) on settlement of foreign currency derivative instruments relating to borrowings, which have not been designated as hedges are recorded in finance expense.
12
New Accounting standards adopted by the Company:
The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Companys annual consolidated financial statements for the year ended March 31, 2016, except for:
IFRS 9 Financial instruments
The Company has elected to early adopt IFRS 9, Financial Instruments effective April 1, 2016 with retrospective application.
IFRS 9 introduces a single approach for the classification and measurement of financial assets according to their cash flow characteristics and the business model they are managed in, and provides a new impairment model based on expected credit losses. IFRS 9 also includes new guidance regarding the application of hedge accounting to better reflect an entitys risk management activities especially with regard to managing non-financial risks.
Application of the new measurement and presentation requirements of IFRS 9 did not have a significant impact on equity. The Company continues to measure at fair value all financial assets earlier measured at fair value. All existing hedge relationships that were earlier designated as effective hedging relationships continue to qualify for hedge accounting under IFRS 9. As IFRS 9 does not change the general principles of how an entity accounts for effective hedges, there is no significant impact as a result of applying IFRS 9. The effect of change in measurement of financial instruments on the Companys financial position has been applied retrospectively. The retrospective application did not have a significant impact on the financial position as at March 31, 2015 and 2016.
The total impact on the Companys retained earnings due to classification and measurement of financial instruments is as follows:
Effect on retained earnings |
Effect on other reserves |
|||||||
Reported opening balance as at April 1, 2015 |
₹ | 372,248 | ₹ | 655 | ||||
|
|
|
|
|||||
Impact on adoption of IFRS 9 |
||||||||
Reclassification of investments from AFS to FVTPL (refer note a) |
55 | (55 | ) | |||||
Expected credit losses on financial assets (refer note d) |
(1,243 | ) | | |||||
Deferred tax impact on the above |
406 | 24 | ||||||
|
|
|
|
|||||
Total impact on adoption of IFRS 9 |
(782 | ) | (31 | ) | ||||
|
|
|
|
|||||
Adjusted balance as at April 1, 2015 |
₹ | 371,466 | ₹ | 624 | ||||
Reported balance as at March 31, 2016 |
425,735 | 505 | ||||||
Impact of adoption of IFRS 9 for the year ended March 31, 2016 |
||||||||
Reclassification of investments from AFS to FVTPL (refer note a) |
375 | (375 | ) | |||||
Expected credit losses on financial assets (refer note d) |
(161 | ) | | |||||
Deferred tax impact on the above |
(61 | ) | 117 | |||||
|
|
|
|
|||||
Adjustment on adoption of IFRS 9 for the year ended March 31, 2016 |
153 | (258 | ) | |||||
|
|
|
|
|||||
Cumulative impact on adoption of IFRS 9 as at March 31, 2016 |
(629 | ) | (289 | ) | ||||
|
|
|
|
|||||
Adjusted balance as at March 31, 2016 |
₹ | 425,106 | ₹ | 216 | ||||
|
|
|
|
(a) | Reclassification of investments from available for sale (AFS) to FVTPL |
Certain investments in liquid and short-term mutual funds and equity linked debentures were reclassified from available for sale to financial assets measured at FVTPL. Related fair value gains were transferred from other comprehensive income to retained earnings on April 1, 2015. During the year ended March 31, 2016, fair value gains related to these investments amounting to ₹ 258 was recognized in statement of income, net of related deferred tax expense of ₹ 117. This reclassification did not have any impact on the carrying value of the said assets as at April 1, 2015.
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(b) | Reclassification of investments from AFS to FVTOCI |
The Company on initial application of IFRS 9 has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of equity investments not held for trading. Such investments and investment in certificate of deposits were reclassified from available for sale to financial assets measured at FVTOCI. The fair value movements on these investments continue to be recorded through other comprehensive income. This reclassification did not have any impact on the carrying value of the said assets as at April 1, 2015.
(c) | Reclassification of loans and deposits to financial instruments at amortised cost |
Certain inter corporate and term deposits along with related interest accruals were reclassified from loans and receivables reported as part of other assets to financial assets measured at amortised cost. This reclassification did not have any impact on the carrying value of the said assets as at April 1, 2015.
(d) | Impairment of financial assets |
The Company has applied the simplified approach to providing for expected credit losses on trade receivables as described by IFRS 9, which requires the use of lifetime expected credit loss provision for all trade receivables. These provisions are based on assessment of risk of default and expected timing of collection. A cumulative impairment provision of ₹ 918 (net of deferred tax) has been recorded as an adjustment to retained earnings as at April 1, 2015.
The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
New accounting standards not yet adopted:
A number of new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2016, and have not been applied in preparing these condensed consolidated interim financial statements. New standards, amendments to standards and interpretations that could have a potential impact on the consolidated financial statements of the Company are:
IFRS 15 Revenue from Contracts with Customers
IFRS 15 supersedes all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations). According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account balances between periods and key judgments and estimates. The standard permits the use of either the retrospective or cumulative effect transition method. In September 2015, the IASB issued an amendment to IFRS 15 deferring the adoption of standard to the period beginning on or after January 1, 2018. The Company is currently assessing the impact of adopting IFRS 15 on the Companys Consolidated Financial Statements.
IFRS 16 - Leases
On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Accounting for transactions where the Company is a lessee is expected to be impacted on application of this standard. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019, though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Company is currently assessing the impact of adopting IFRS 16 on the Companys Consolidated Financial Statements.
14
4. | Property, plant and equipment |
Land | Buildings | Plant and machinery* |
Furniture fixtures and equipment |
Vehicles | Total | |||||||||||||||||||
Gross carrying value: |
||||||||||||||||||||||||
As at April 1, 2015 |
₹ | 3,685 | ₹ | 24,515 | ₹ | 79,594 | ₹ | 12,698 | ₹ | 830 | ₹ | 121,322 | ||||||||||||
Translation adjustment |
11 | 168 | 1,294 | 82 | (9 | ) | 1,546 | |||||||||||||||||
Additions |
| 207 | 6,661 | 426 | 8 | 7,302 | ||||||||||||||||||
Additions through business combination |
| 14 | | 40 | 1 | 55 | ||||||||||||||||||
Disposal / adjustments |
| | (732 | ) | (427 | ) | (28 | ) | (1,187 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at September 30, 2015 |
₹ | 3,696 | ₹ | 24,904 | ₹ | 86,817 | ₹ | 12,819 | ₹ | 802 | ₹ | 129,038 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation/impairment: |
||||||||||||||||||||||||
As at April 1, 2015 |
₹ | | ₹ | 4,513 | ₹ | 56,629 | ₹ | 10,636 | ₹ | 809 | ₹ | 72,587 | ||||||||||||
Translation adjustment |
| 58 | 815 | 58 | (3 | ) | 928 | |||||||||||||||||
Depreciation |
| 398 | 5,245 | 566 | 11 | 6,220 | ||||||||||||||||||
Disposal / adjustments |
| (39 | ) | (698 | ) | (323 | ) | (21 | ) | (1,081 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at September 30, 2015 |
₹ | | ₹ | 4,930 | ₹ | 61,991 | ₹ | 10,937 | ₹ | 796 | ₹ | 78,654 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Capital work-in-progress |
₹ | 7,019 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Net carrying value including Capital work-in-progress as at September 30, 2015 |
₹ | 57,403 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Gross carrying value: |
||||||||||||||||||||||||
As at April 1, 2015 |
₹ | 3,685 | ₹ | 24,515 | ₹ | 79,594 | ₹ | 12,698 | ₹ | 830 | ₹ | 121,322 | ||||||||||||
Translation adjustment |
10 | 209 | 1,720 | 79 | (1 | ) | 2,017 | |||||||||||||||||
Additions |
| 1,799 | 15,424 | 1,791 | 62 | 19,076 | ||||||||||||||||||
Additions through business combination |
| 105 | 4,462 | 162 | 34 | 4,763 | ||||||||||||||||||
Disposal / adjustments |
| (539 | ) | (1,620 | ) | (615 | ) | (336 | ) | (3,110 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at March 31, 2016 |
₹ | 3,695 | ₹ | 26,089 | ₹ | 99,580 | ₹ | 14,115 | ₹ | 589 | ₹ | 144,068 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation/impairment: |
||||||||||||||||||||||||
As at April 1, 2015 |
₹ | | ₹ | 4,513 | ₹ | 56,629 | ₹ | 10,636 | ₹ | 809 | ₹ | 72,587 | ||||||||||||
Translation adjustment |
| 73 | 1,113 | 80 | | 1,266 | ||||||||||||||||||
Depreciation |
| 861 | 11,381 | 1,094 | 19 | 13,355 | ||||||||||||||||||
Disposal / adjustments |
| (103 | ) | (962 | ) | (492 | ) | (324 | ) | (1,881 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at March 31, 2016 |
₹ | | ₹ | 5,344 | ₹ | 68,161 | ₹ | 11,318 | ₹ | 504 | ₹ | 85,327 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Capital work-in-progress |
₹ | 6,211 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Net carrying value including Capital work-in-progress as at March 31, 2016 |
₹ | 64,952 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Gross carrying value: |
||||||||||||||||||||||||
As at April 1, 2016 |
₹ | 3,695 | ₹ | 26,089 | ₹ | 99,580 | ₹ | 14,115 | ₹ | 589 | ₹ | 144,068 | ||||||||||||
Translation adjustment |
| 3 | 68 | 7 | 5 | 83 | ||||||||||||||||||
Additions |
| 642 | 8,494 | 969 | 17 | 10,122 | ||||||||||||||||||
Disposal / adjustments |
| (8 | ) | (4,103 | ) | (380 | ) | (53 | ) | (4,544 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at September 30, 2016 |
₹ | 3,695 | ₹ | 26,726 | ₹ | 104,039 | ₹ | 14,711 | ₹ | 558 | ₹ | 149,729 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated depreciation/impairment: |
||||||||||||||||||||||||
As at April 1, 2016 |
₹ | | ₹ | 5,344 | ₹ | 68,161 | ₹ | 11,318 | ₹ | 504 | ₹ | 85,327 | ||||||||||||
Translation adjustment |
| 3 | 25 | 8 | 2 | 38 | ||||||||||||||||||
Depreciation |
| 506 | 7,173 | 530 | 9 | 8,218 | ||||||||||||||||||
Disposal / adjustments |
| (7 | ) | (3,839 | ) | (344 | ) | (43 | ) | (4,233 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As at September 30, 2016 |
₹ | | ₹ | 5,846 | ₹ | 71,520 | ₹ | 11,512 | ₹ | 472 | ₹ | 89,350 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Capital work-in-progress |
₹ | 8,724 | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||
Net carrying value including Capital work-in-progress as at September 30, 2016 |
₹ | 69,103 | ||||||||||||||||||||||
|
|
* | Including computer equipment and software. |
15
5. | Goodwill and intangible assets |
The movement in goodwill balance is given below:
Year ended March 31, 2016 |
Six months ended September 30, 2016 |
|||||||
Balance at the beginning of the period |
₹ | 68,078 | ₹ | 101,991 | ||||
Translation adjustment |
3,421 | (69 | ) | |||||
Acquisition through business combination, net/adjustments |
30,492 | (58 | ) | |||||
|
|
|
|
|||||
Balance at the end of the period |
₹ | 101,991 | ₹ | 101,864 | ||||
|
|
|
|
Intangible assets | ||||||||||||
Customer related |
Marketing related |
Total | ||||||||||
Gross carrying value: |
||||||||||||
As at April 1, 2015 |
₹ | 10,617 | ₹ | 905 | ₹ | 11,522 | ||||||
Translation adjustment |
60 | 88 | 148 | |||||||||
Acquisition through business combination |
597 | 741 | 1,338 | |||||||||
|
|
|
|
|
|
|||||||
As at September 30, 2015 |
₹ | 11,274 | ₹ | 1,734 | ₹ | 13,008 | ||||||
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment: |
||||||||||||
As at April 1, 2015 |
₹ | 2,936 | ₹ | 655 | ₹ | 3,591 | ||||||
Translation adjustment |
| 48 | 48 | |||||||||
Amortization |
554 | 75 | 629 | |||||||||
|
|
|
|
|
|
|||||||
As at September 30, 2015 |
₹ | 3,490 | ₹ | 778 | ₹ | 4,268 | ||||||
|
|
|
|
|
|
|||||||
Net carrying value as at September 30, 2015 |
₹ | 7,784 | ₹ | 956 | ₹ | 8,740 | ||||||
Gross carrying value: |
||||||||||||
As at April 1, 2015 |
₹ | 10,617 | ₹ | 905 | ₹ | 11,522 | ||||||
Translation adjustment |
292 | 120 | 412 | |||||||||
Disposal/ adjustment |
| 189 | 189 | |||||||||
Acquisition through business combination |
7,451 | 1,373 | 8,824 | |||||||||
|
|
|
|
|
|
|||||||
As at March 31, 2016 |
₹ | 18,360 | ₹ | 2,587 | ₹ | 20,947 | ||||||
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment: |
||||||||||||
As at April 1, 2015 |
₹ | 2,936 | ₹ | 655 | ₹ | 3,591 | ||||||
Translation adjustment |
| 70 | 70 | |||||||||
Amortization and impairment |
1,228 | 217 | 1,445 | |||||||||
|
|
|
|
|
|
|||||||
As at March 31, 2016 |
₹ | 4,164 | ₹ | 942 | ₹ | 5,106 | ||||||
|
|
|
|
|
|
|||||||
Net carrying value as at March 31, 2016 |
₹ | 14,196 | ₹ | 1,645 | ₹ | 15,841 | ||||||
Gross carrying value: |
||||||||||||
As at April 1, 2016 |
₹ | 18,360 | ₹ | 2,587 | ₹ | 20,947 | ||||||
Acquisition through business combination, net/adjustments |
(62 | ) | | (62 | ) | |||||||
Translation adjustment |
(49 | ) | (21 | ) | (70 | ) | ||||||
|
|
|
|
|
|
|||||||
As at September 30, 2016 |
₹ | 18,249 | ₹ | 2,566 | ₹ | 20,815 | ||||||
|
|
|
|
|
|
|||||||
Accumulated amortization and impairment: |
||||||||||||
As at April 1, 2016 |
₹ | 4,164 | ₹ | 942 | ₹ | 5,106 | ||||||
Translation adjustment |
| (6 | ) | (6 | ) | |||||||
Amortization |
1,019 | 217 | 1,236 | |||||||||
|
|
|
|
|
|
|||||||
As at September 30, 2016 |
₹ | 5,183 | ₹ | 1,153 | ₹ | 6,336 | ||||||
|
|
|
|
|
|
|||||||
Net carrying value as at September 30, 2016 |
₹ | 13,066 | ₹ | 1,413 | ₹ | 14,479 |
Amortization expense on intangible assets is included in selling and marketing expenses in the condensed consolidated interim statement of income.
16
6. | Business combination |
Designit AS
On August 6, 2015, the Company obtained control of Designit AS (Designit) by acquiring 100% of its share capital. Designit is a Denmark based global strategic design firm specializing in designing transformative product-service experiences. The acquisition strengthens the Companys digital offerings, combining engineering and transformative technology with human centered-design methods.
The acquisition was executed through a share purchase agreement for a consideration of ₹ 6,540 (EUR 93 million) which includes a deferred earn-out component of ₹ 2,092 (EUR 30 million), which is linked to achievement of revenues and earnings over a period of 3 years ending June 30, 2018. The fair value of the earn-out liability was estimated by applying the discounted cash flow approach considering discount rate of 13% and probability adjusted revenue and earnings estimates. This earn-out liability was fair valued at ₹ 1,287 million and recorded as part of purchase price allocation.
The following table presents the allocation of purchase price:
Description |
Pre-acquisition carrying amount |
Fair value adjustments |
Purchase price allocated |
|||||||||
Net assets |
₹ | 586 | ₹ | | ₹ | 586 | ||||||
Customer related intangibles |
| 597 | 597 | |||||||||
Brand |
| 638 | 638 | |||||||||
Non-compete agreement |
| 103 | 103 | |||||||||
Deferred tax liabilities on intangible assets |
| (290 | ) | (290 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
₹ | 586 | ₹ | 1,048 | 1,634 | |||||||
|
|
|
|
|
|
|||||||
Goodwill |
4,046 | |||||||||||
|
|
|||||||||||
Total purchase price |
₹ | 5,680 | ||||||||||
|
|
Net assets acquired include ₹ 359 of cash and cash equivalents and trade receivables valued at ₹ 392.
The goodwill of ₹ 4,046 comprises value of acquired workforce and expected synergies arising from the acquisition. Goodwill is not deductible for income tax purposes.
During the year ended March 31, 2016, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition.
Cellent AG
On January 5, 2016, the Company obtained control of Cellent AG (Cellent) by acquiring 100% of its share capital. Cellent is an IT consulting and software services company offering IT solutions and services to customers in Germany, Switzerland and Austria. This acquisition provides Wipro with scale and customer relationships, in the Manufacturing and Automotive domains in Germany, Switzerland and Austria region.
The acquisition was executed through a share purchase agreement for a consideration of ₹ 5,686 (EUR 78.8 million), net of ₹ 114 received during the current period on conclusion of certain closing conditions which has resulted in reduction of goodwill as at September 30, 2016.
17
The following table presents the allocation of purchase price:
Description |
Pre-acquisition carrying amount |
Fair value adjustments |
Purchase price allocated |
|||||||||
Net assets |
₹ | 846 | ₹ | | ₹ | 846 | ||||||
Customer related intangibles |
| 1,001 | 1,001 | |||||||||
Brand |
| 317 | 317 | |||||||||
Deferred tax liabilities on intangible assets |
| (391 | ) | (391 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
₹ | 846 | ₹ | 927 | 1,773 | |||||||
|
|
|
|
|
|
|||||||
Goodwill |
3,913 | |||||||||||
|
|
|||||||||||
Total purchase price |
₹ | 5,686 | ||||||||||
|
|
Net assets acquired include ₹ 367 of cash and cash equivalents and trade receivables valued at ₹ 1,437.
The goodwill of ₹ 3,913 comprises value of acquired workforce and expected synergies arising from the acquisition. Goodwill is not deductible for income tax purposes.
During the period ended September 30, 2016, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition.
Healthplan Services
On February 29, 2016, the Company obtained full control of HPH Holdings Corp. (Healthplan Services). HealthPlan Services offers market-leading technology platforms and a fully integrated Business Process as a Service (BPaaS) solution to Health Insurance companies (Payers) in the individual, group and ancillary markets. HealthPlan Services provides U.S. Payers with a diversified portfolio of health insurance products delivered through its proprietary technology platform.
The acquisition was consummated for a consideration of ₹ 31,069 (USD 454.1 million) which includes a deferred earn-out component of ₹ 1,115 (USD 16.3 million), which is linked to achievement of revenues and earnings over a period of 3 years ending March 31, 2019. The fair value of the earn-out liability was estimated by applying the discounted cash flow approach considering discount rate of 14.1% and probability adjusted revenue and earnings estimates. This earn-out liability was fair valued at ₹ 536 million (USD 7.8 million) and recorded as part of preliminary purchase price allocation.
The following table presents the provisional allocation of purchase price:
Description |
Pre-acquisition carrying amount |
Fair value adjustments |
Purchase price allocated |
|||||||||
Net assets |
₹ | 368 | ₹ | 1,604 | ₹ | 1,972 | ||||||
Technology platform |
1,087 | 1,904 | 2,991 | |||||||||
Customer related intangibles |
| 5,853 | 5,853 | |||||||||
Non-compete agreement |
| 315 | 315 | |||||||||
Deferred tax liabilities on intangible assets |
| (3,066 | ) | (3,066 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
₹ | 1,455 | ₹ | 6,610 | 8,065 | |||||||
|
|
|
|
|
|
|||||||
Goodwill |
22,425 | |||||||||||
|
|
|||||||||||
Total purchase price |
₹ | 30,490 | ||||||||||
|
|
Net assets acquired include ₹ 47 of cash and cash equivalents and trade receivables valued at ₹ 2,449.
The goodwill of ₹ 22,425 comprises value of acquired workforce and expected synergies arising from the acquisition. Goodwill is not deductible for income tax purposes.
The purchase consideration has been allocated on a provisional basis based on managements estimates. The Company is in the process of making a final determination of the fair value of assets and liabilities. Finalization of the purchase price allocation may result in certain adjustments to the above allocation.
18
7. | Investments |
Financial instruments consist of the following:
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Financial instruments at FVTPL |
||||||||
Investments in liquid and short-term mutual funds (1) |
₹ | 10,578 | ₹ | 83,259 | ||||
Others |
816 | 544 | ||||||
Financial instruments at FVTOCI |
||||||||
Equity instruments |
4,907 | 5,092 | ||||||
Commercial paper, Certificate of deposits and bonds |
121,676 | 114,443 | ||||||
Financial instruments at amortised cost |
||||||||
Inter corporate and term deposits (2) (3) |
71,174 | 60,253 | ||||||
|
|
|
|
|||||
₹ | 209,151 | ₹ | 263,591 | |||||
|
|
|
|
|||||
Current |
204,244 | 258,499 | ||||||
Non-current |
4,907 | 5,092 |
(1) | Investments in liquid and short-term mutual funds include investments amounting to ₹ 113 (March 31, 2016: ₹ 109) pledged as margin money deposits for entering into currency future contracts. |
(2) | These deposits earn a fixed rate of interest and mature within 12 months. |
(3) | Term deposits include deposits in lien with banks amounting to ₹ 398 (March 31, 2016: ₹ 300). |
8. | Inventories |
Inventories consist of the following:
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Stores and spare parts |
₹ | 871 | ₹ | 876 | ||||
Raw materials and components |
2 | 1 | ||||||
Finished goods and traded goods |
4,517 | 4,338 | ||||||
|
|
|
|
|||||
₹ | 5,390 | ₹ | 5,215 | |||||
|
|
|
|
9. | Cash and cash equivalents |
Cash and cash equivalents as of March 31, 2016 and September 30, 2016 consists of cash and balances on deposit with banks. Cash and cash equivalents consists of the following:
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Cash and bank balances |
₹ | 63,518 | ₹ | 23,767 | ||||
Demand deposits with banks (1) (2) |
35,531 | 31,400 | ||||||
|
|
|
|
|||||
₹ | 99,049 | ₹ | 55,167 | |||||
|
|
|
|
(1) | These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal. |
(2) | Demand deposits with banks include deposits in lien with banks amounting to ₹ Nil (March 31, 2016: ₹ 3). |
Cash and cash equivalents consists of the following for the purpose of the cash flow statement:
As at | ||||||||
September 30, 2015 | September 30, 2016 | |||||||
Cash and cash equivalents |
₹ | 100,486 | ₹ | 55,167 | ||||
Bank overdrafts |
(3,393 | ) | (1,816 | ) | ||||
|
|
|
|
|||||
₹ | 97,093 | ₹ | 53,351 | |||||
|
|
|
|
19
10. | Other assets |
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Current |
||||||||
Prepaid expenses and Deposits |
₹ | 14,518 | 14,684 | |||||
Due from officers and employees |
3,780 | 3,097 | ||||||
Finance lease receivables |
2,034 | 1,865 | ||||||
Advance to suppliers |
1,507 | 1,364 | ||||||
Deferred contract costs |
3,720 | 4,173 | ||||||
Interest receivable |
2,488 | 1,946 | ||||||
Balance with excise, customs and other authorities |
1,814 | 2,106 | ||||||
Others(1) |
3,033 | 3,010 | ||||||
|
|
|
|
|||||
₹ | 32,894 | ₹ | 32,245 | |||||
|
|
|
|
|||||
Non-current |
||||||||
Prepaid expenses including rentals for leasehold land and deposits |
₹ | 8,534 | ₹ | 10,067 | ||||
Finance lease receivables |
2,964 | 2,856 | ||||||
Deferred contract costs |
3,807 | 3,537 | ||||||
Others |
523 | 313 | ||||||
|
|
|
|
|||||
₹ | 15,828 | ₹ | 16,773 | |||||
|
|
|
|
|||||
Total |
₹ | 48,722 | ₹ | 49,018 | ||||
|
|
|
|
(1) | Others include ₹ Nil (March 31, 2016: ₹ 418) representing assets held for sale. |
11. | Loans and borrowings |
A summary of loans and borrowings is as follows:
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Borrowings from banks |
₹ | 105,661 | ₹ | 104,420 | ||||
External commercial borrowings |
9,938 | 9,993 | ||||||
Obligations under finance leases |
8,963 | 9,192 | ||||||
Term loans |
659 | 999 | ||||||
|
|
|
|
|||||
Total loans and borrowings |
₹ | 125,221 | ₹ | 124,604 | ||||
|
|
|
|
12. | Other liabilities and provisions |
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Other liabilities: |
||||||||
Current: |
||||||||
Statutory and other liabilities |
₹ | 3,871 | ₹ | 2,839 | ||||
Employee benefit obligations |
5,494 | 6,010 | ||||||
Advance from customers |
2,283 | 1,993 | ||||||
Others |
2,173 | 1,978 | ||||||
|
|
|
|
|||||
₹ | 13,821 | ₹ | 12,820 | |||||
|
|
|
|
|||||
Non-current: |
||||||||
Employee benefit obligations |
₹ | 4,618 | ₹ | 4,684 | ||||
Others |
2,607 | 2,585 | ||||||
|
|
|
|
|||||
₹ | 7,225 | ₹ | 7,269 | |||||
|
|
|
|
|||||
Total |
₹ | 21,046 | ₹ | 20,089 | ||||
|
|
|
|
20
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Provisions: |
||||||||
Current: |
||||||||
Provision for warranty |
₹ | 388 | ₹ | 381 | ||||
Others |
874 | 805 | ||||||
|
|
|
|
|||||
₹ | 1,262 | ₹ | 1,186 | |||||
|
|
|
|
|||||
Non-current: |
||||||||
Provision for warranty |
₹ | 14 | ₹ | 14 | ||||
|
|
|
|
|||||
Total |
₹ | 1,276 | ₹ | 1,200 | ||||
|
|
|
|
Provision for warranty represents cost associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 to 2 years. Other provisions primarily include provisions for tax related contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined.
13. | Financial instruments |
Derivative assets and liabilities:
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks of non-performance by the counterparty as non-material.
The following table presents the aggregate contracted principal amounts of the Companys derivative contracts outstanding:
As at | ||||||||
March 31, 2016 | September 30, 2016 | |||||||
Designated derivative instruments |
||||||||
Sell |
$ | 922 | $ | 916 | ||||
£ | 248 | £ | 265 | |||||
| 278 | | 248 | |||||
AUD | 139 | AUD | 129 | |||||
SAR | 19 | SAR | | |||||
AED | 7 | AED | | |||||
Interest rate swaps |
$ | 150 | $ | 150 | ||||
Non designated derivative instruments |
||||||||
Sell |
$ | 1,298 | $ | 850 | ||||
£ | 55 | £ | 56 | |||||
| 87 | | 78 | |||||
AUD | 35 | AUD | 45 | |||||
¥ | 490 | ¥ | 490 | |||||
SGD | 3 | SGD | 3 | |||||
ZAR | 110 | ZAR | 285 | |||||
CAD | 11 | CAD | 11 | |||||
CHF | 10 | CHF | 10 | |||||
SAR | 58 | SAR | 49 | |||||
AED | 7 | AED | 74 | |||||
PLN | | PLN | 31 | |||||
Buy |
$ | 822 | $ | 810 |
21
The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:
As at September 30, | ||||||||
2015 | 2016 | |||||||
Balance as at the beginning of the period |
₹ | 4,268 | ₹ | 2,367 | ||||
Deferred cancellation gain/(loss) |
48 | 80 | ||||||
Changes in fair value of effective portion of derivatives |
(1,206 | ) | 5,215 | |||||
Net (gain)/loss reclassified to statement of income on occurrence of hedged transactions |
(1,664 | ) | (2,326 | ) | ||||
|
|
|
|
|||||
Gain/(loss) on cash flow hedging derivatives, net |
₹ | (2,822 | ) | ₹ | 2,969 | |||
|
|
|
|
|||||
Balance as at the end of the period |
₹ | 1,446 | ₹ | 5,336 | ||||
|
|
|
|
|||||
Deferred tax asset/(liability) thereon |
₹ | (243 | ) | ₹ | (811 | ) | ||
|
|
|
|
|||||
Balance as at the end of the period, net of deferred tax |
₹ | 1,203 | ₹ | 4,525 | ||||
|
|
|
|
As at March 31, 2016, September 30, 2015 and 2016, there were no significant gains or losses on derivative transactions or portions thereof that have become ineffective as hedges, or associated with an underlying exposure that did not occur.
14. | Fair value hierarchy |
Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances and eligible current and non-current assets, long and short-term loans and borrowings, finance lease payables, bank overdrafts, trade payable, eligible current liabilities and non-current liabilities. The fair value of financial assets and liabilities approximate their carrying amount largely due to the short-term nature of such assets and liabilities.
Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using the net asset values at the reporting date multiplied by the quantity held.
The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
The following table presents fair value of hierarchy of assets and liabilities measured at fair value on a recurring basis:
As at March 31, 2016 | As at September 30, 2016 | |||||||||||||||||||||||||||||||
Fair value measurements at reporting date using |
Fair value measurements at reporting date using |
|||||||||||||||||||||||||||||||
Particulars |
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||
Derivative instruments: |
||||||||||||||||||||||||||||||||
Cash flow hedges |
₹ | 3,072 | ₹ | | ₹ | 3,072 | ₹ | | ₹ | 5,392 | ₹ | | ₹ | 5,392 | ₹ | | ||||||||||||||||
Others |
2,737 | | 2,179 | 558 | 1,454 | | 896 | 558 | ||||||||||||||||||||||||
Investments: |
||||||||||||||||||||||||||||||||
Investment in liquid and short-term mutual funds |
10,578 | 10,578 | | | 83,259 | 83,259 | | |
22
As at March 31, 2016 | As at September 30, 2016 | |||||||||||||||||||||||||||||||
Fair value measurements at reporting date using |
Fair value measurements at reporting date using |
|||||||||||||||||||||||||||||||
Particulars |
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Other investments |
816 | | 816 | | 544 | | 544 | | ||||||||||||||||||||||||
Investment in equity instruments |
4,907 | | | 4,907 | 5,092 | | | 5,092 | ||||||||||||||||||||||||
Commercial paper, Certificate of deposits and bonds |
121,676 | 1,094 | 120,582 | | 114,443 | 2,062 | 112,381 | | ||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||
Derivative instruments: |
||||||||||||||||||||||||||||||||
Cash flow hedges |
(706 | ) | | (706 | ) | | (135 | ) | | (135 | ) | | ||||||||||||||||||||
Others |
(1,753 | ) | | (1,753 | ) | | (2,444 | ) | | (2,444 | ) | | ||||||||||||||||||||
Contingent consideration |
(2,251 | ) | | | (2,251 | ) | (2,396 | ) | | | (2,396 | ) |
The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments included in the above table.
Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As at September 30, 2016, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.
Investment in commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at the reporting date.
Details of assets and liabilities considered under Level 3 classification:
Investments in equity instruments |
Derivative Assets Others |
Liabilities Contingent consideration |
||||||||||
Opening balance as on April 1, 2015 |
₹ | 3,867 | ₹ | 524 | ₹ | (110 | ) | |||||
Additions/adjustments |
1,016 | | (1,908 | ) | ||||||||
Gain/loss recognized in statement of income |
| 34 | | |||||||||
Gain/loss recognized in foreign currency translation reserve |
| | (95 | ) | ||||||||
Gain/loss recognized in other comprehensive income |
24 | | | |||||||||
Finance expense recognized in statement of income |
| | (138 | ) | ||||||||
Balance as on March 31, 2016 |
₹ | 4,907 | ₹ | 558 | ₹ | (2,251 | ) | |||||
Additions/(Deletions) |
185 | | | |||||||||
Gain/loss recognized in foreign currency translation reserve |
| | (22 | ) | ||||||||
Finance expense recognized in statement of income |
| | (123 | ) | ||||||||
Closing balance as on September 30, 2016 |
5,092 | 558 | (2,396 | ) |
23
Description of significant unobservable inputs to valuation:
Item |
Valuation technique |
Significant unobservable inputs |
Movement by |
Increase (₹) |
Decrease (₹) |
|||||||||||
Unquoted equity investments |
Discounted cash flow model Market multiple approach |
Long term growth rate |
0.5 | % | 57 | (53 | ) | |||||||||
Discount rate |
0.5 | % | (95 | ) | 103 | |||||||||||
Revenue multiple |
0.5x | 182 | (187 | ) | ||||||||||||
Derivative assets |
Option pricing model |
Volatility of comparable companies |
2.5 | % | 31 | (32 | ) | |||||||||
Time to liquidation event |
1 year | 60 | (69 | ) | ||||||||||||
Contingent consideration |
Probability weighted method |
Estimated revenue achievement |
1 | % | 36 | (36 | ) | |||||||||
Estimated earnings achievement |
1 | % | 37 | (37 | ) |
15. | Foreign currency translation reserve |
The movement in foreign currency translation reserve attributable to equity holders of the Company is summarized below:
As at | ||||||||
September 30, 2015 | September 30, 2016 | |||||||
Balance at the beginning of the period |
₹ | 11,249 | ₹ | 16,116 | ||||
|
|
|
|
|||||
Translation difference related to foreign operations, net |
4,017 | 194 | ||||||
Change in effective portion of hedges of net investment in foreign operations |
(570 | ) | (55 | ) | ||||
|
|
|
|
|||||
Total change during the period |
₹ | 3,447 | ₹ | 139 | ||||
|
|
|
|
|||||
Balance at the end of the period |
₹ | 14,696 | ₹ | 16,255 | ||||
|
|
|
|
16. | Income taxes |
Income tax expense / (credit) has been allocated as follows:
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Income tax expense as per the statement of income |
₹ | 6,515 | ₹ | 5,909 | ₹ | 12,473 | ₹ | 12,031 | ||||||||
Income tax included in other comprehensive income on: |
||||||||||||||||
Unrealized gain on investment securities |
169 | 303 | 62 | 629 | ||||||||||||
Gain / (loss) on cash flow hedging derivatives |
(82 | ) | 398 | (475 | ) | 354 | ||||||||||
Defined benefit plan actuarial gains / (losses) |
(18 | ) | 2 | (204 | ) | 24 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total income taxes |
₹ | 6,584 | ₹ | 6,612 | ₹ | 11,856 | ₹ | 13,038 | ||||||||
|
|
|
|
|
|
|
|
Income tax expense consists of the following:
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Current taxes |
||||||||||||||||
Domestic |
₹ | 5,322 | ₹ | 5,030 | ₹ | 10,155 | ₹ | 9,771 | ||||||||
Foreign |
1,374 | 1,291 | 2,544 | 2,935 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₹ | 6,696 | ₹ | 6,321 | ₹ | 12,699 | ₹ | 12,706 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Deferred taxes |
||||||||||||||||
Domestic |
₹ | (137 | ) | ₹ | (95 | ) | ₹ | (222 | ) | ₹ | (336 | ) | ||||
Foreign |
(44 | ) | (317 | ) | (4 | ) | (339 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
₹ | (181 | ) | ₹ | (412 | ) | ₹ | (226 | ) | ₹ | (675 | ) | |||||
|
|
|
|
|
|
|
|
|||||||||
Total income tax expense |
₹ | 6,515 | ₹ | 5,909 | ₹ | 12,473 | ₹ | 12,031 | ||||||||
|
|
|
|
|
|
|
|
24
Income tax expense is net of reversal of provisions recorded in earlier periods, which are no longer required, amounting to ₹ 270 and ₹ 475 for the three months ended September 30, 2015 and 2016 respectively and ₹ 625 and ₹ 663 the six months ended September 30, 2015 and 2016 respectively.
17. | Revenues |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Rendering of services |
₹ | 119,468 | ₹ | 129,613 | ₹ | 233,334 | ₹ | 258,934 | ||||||||
Sale of products |
5,667 | 8,044 | 14,177 | 14,715 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total revenues |
₹ | 125,135 | ₹ | 137,657 | ₹ | 247,511 | ₹ | 273,649 | ||||||||
|
|
|
|
|
|
|
|
18. | Expenses by nature |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Employee compensation |
₹ | 61,314 | ₹ | 67,105 | ₹ | 120,321 | ₹ | 133,282 | ||||||||
Sub-contracting/technical fees |
15,880 | 19,919 | 30,441 | 40,279 | ||||||||||||
Cost of hardware and software |
5,375 | 7,502 | 13,565 | 14,057 | ||||||||||||
Travel |
5,984 | 5,036 | 11,641 | 10,565 | ||||||||||||
Facility expenses |
4,060 | 4,726 | 8,125 | 9,714 | ||||||||||||
Depreciation and amortization |
3,530 | 4,849 | 6,897 | 9,514 | ||||||||||||
Communication |
1,281 | 1,272 | 2,559 | 2,560 | ||||||||||||
Legal and professional fees |
943 | 1,232 | 1,923 | 2,514 | ||||||||||||
Rates, taxes and insurance |
636 | 673 | 1,296 | 1,210 | ||||||||||||
Advertisement |
618 | 749 | 1,051 | 1,518 | ||||||||||||
Provision for doubtful debt |
484 | 1,175 | 743 | 1,464 | ||||||||||||
Miscellaneous expenses |
1,314 | 1,729 | 2,581 | 3,419 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total cost of revenues, selling and marketing and general and administrative expenses |
₹ | 101,419 | ₹ | 115,967 | ₹ | 201,143 | ₹ | 230,096 | ||||||||
|
|
|
|
|
|
|
|
19. | Finance expense |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Interest expense |
₹ | 325 | ₹ | 543 | ₹ | 641 | ₹ | 955 | ||||||||
Exchange fluctuation on foreign currency borrowings, net |
1,264 | 885 | 2,234 | 1,809 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₹ | 1,589 | ₹ | 1,428 | ₹ | 2,875 | ₹ | 2,764 | ||||||||
|
|
|
|
|
|
|
|
20. | Finance and other income |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Interest income |
₹ | 5,328 | ₹ | 4,195 | ₹ | 10,131 | ₹ | 8,927 | ||||||||
Dividend income |
28 | 53 | 54 | 77 | ||||||||||||
Unrealized gains/losses on financial instruments measured at fair value through profit or loss |
124 | 413 | 217 | 489 | ||||||||||||
Gain on sale of investments |
838 | 444 | 1,251 | 812 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
₹ | 6,318 | ₹ | 5,105 | ₹ | 11,653 | ₹ | 10,305 | ||||||||
|
|
|
|
|
|
|
|
25
21. | Earnings per equity share |
A reconciliation of profit for the period and equity shares used in the computation of basic and diluted earnings per equity share is set out below:
Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period, excluding equity shares purchased by the Company and held as treasury shares.
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Profit attributable to equity holders of the Company |
₹ | 22,409 | ₹ | 20,672 | ₹ | 44,326 | ₹ | 41,190 | ||||||||
Weighted average number of equity shares outstanding |
2,456,285,585 | 2,420,621,137 | 2,456,223,408 | 2,439,012,817 | ||||||||||||
Basic earnings per share |
₹ | 9.12 | ₹ | 8.54 | ₹ | 18.05 | ₹ | 16.89 |
Diluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares outstanding during the period for assumed conversion of all dilutive potential equity shares. Employee share options are dilutive potential equity shares for the Company.
The calculation is performed in respect of share options to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Companys shares during the period). The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Profit attributable to equity holders of the Company |
₹ | 22,409 | ₹ | 20,672 | ₹ | 44,326 | ₹ | 41,190 | ||||||||
Weighted average number of equity shares outstanding |
2,456,285,585 | 2,420,621,137 | 2,456,223,408 | 2,439,012,817 | ||||||||||||
Effect of dilutive equivalent share options |
5,222,349 | 6,191,507 | 4,762,028 | 6,453,834 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average number of equity shares for diluted earnings per share |
2,461,507,934 | 2,426,812,644 | 2,460,985,436 | 2,445,466,651 | ||||||||||||
Basic earnings per share |
₹ | 9.10 | ₹ | 8.52 | ₹ | 18.01 | ₹ | 16.84 |
22. | Employee benefits |
a) | Employee costs include: |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Salaries and bonus |
₹ | 59,510 | ₹ | 64,955 | ₹ | 116,852 | ₹ | 129,010 | ||||||||
Employee benefit plans |
||||||||||||||||
Gratuity |
278 | 241 | 464 | 532 | ||||||||||||
Contribution to provident and other funds |
1,226 | 1,503 | 2,223 | 2,909 | ||||||||||||
Share based compensation |
300 | 406 | 782 | 831 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₹ | 61,314 | ₹ | 67,105 | ₹ | 120,321 | ₹ | 133,282 | |||||||||
|
|
|
|
|
|
|
|
26
b) | The employee benefit cost is recognized in the following line items in the statement of income: |
Three months ended September 30, |
Six months ended September 30, |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
Cost of revenues |
₹ | 51,888 | ₹ | 56,403 | ₹ | 101,835 | ₹ | 112,212 | ||||||||
Selling and marketing expenses |
6,027 | 6,849 | 11,775 | 13,586 | ||||||||||||
General and administrative expenses |
3,399 | 3,853 | 6,711 | 7,484 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₹ | 61,314 | ₹ | 67,105 | ₹ | 120,321 | ₹ | 133,282 | |||||||||
|
|
|
|
|
|
|
|
The Company has granted 104,000 and 104,000 options under RSU option plan during the three and six months ended September 30, 2016 respectively (83,000 and 2,830,400 for the three and six months ended September 30, 2015); 188,000 and 195,500 options under ADS option plan during the three and six months ended September 30, 2016 respectively (10,000 and 1,497,700 for three and six months ended September 30, 2015).
23. | Commitments and contingencies |
Capital commitments: As at March 31, 2016 and September 30, 2016, the Company had committed to spend approximately ₹ 10,734 and ₹ 13,337 respectively, under agreements to purchase property and equipment. These amounts are net of capital advances paid in respect of these purchases.
Guarantees: As at March 31, 2016 and September 30, 2016, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately ₹ 25,218 and ₹ 22,935 respectively, as part of the bank line of credit.
Contingencies and lawsuits: The Company is subject to legal proceedings and claims (including tax assessment orders/ penalty notices) which have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial position of the Company. The significant of such matters are discussed below.
In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Companys undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments for the years ended March 31, 2002 to March 31, 2011 and the aggregate demand is ₹ 47,583 (including interest of ₹ 13,832). The appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2007. Further appeals have been filed by the Income tax authorities before the Honble High Court. The Honble High Court has heard and disposed-off majority of the issues in favor of the Company up to years ended March 31, 2004. Department has filed a Special Leave Petition (SLP) before the Supreme Court of India for the year ended March 31, 2001 on certain issues allowed in favor of the Company.
On similar issues for years up to March 31, 2000, the Honble High Court of Karnataka has upheld the claim of the Company under section 10A of the Act. For the years ended March 31, 2008 and March 31, 2009, the appeals are pending before Income Tax Appellate Tribunal (Tribunal). For years ended March 31, 2010 and March 31, 2011, the Dispute Resolution Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed an appeal before the Tribunal.
For year ended March 31, 2012, the Company received the draft assessment order in March 2016 with a proposed demand of ₹ 4,241 (including interest of ₹ 1,376), arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. Company has filed an objection before DRP within the prescribed timelines.
Considering the facts and nature of disallowance and the order of the appellate authority / Honble High Court of Karnataka upholding the claims of the Company for earlier years, the Company believes that the final outcome of the above disputes should be in favor of the Company and there should not be any material adverse impact on the financial statements.
27
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounts to ₹ 2,654 and ₹ 2,527 as of March 31, 2016 and September 30, 2016.
24. | Segment information |
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 customers organized by industry verticals. Effective April 1, 2016, The Company realigned its industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named Communications. The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as Consumer Business Unit industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the Manufacturing and Technology industry vertical.
The revised industry verticals are as follows: Finance Solutions (BFSI), Healthcare, Lifesciences & Services (HLS), Consumer (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing & Technology (MNT), Communications (COMM). IT Services segment 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 offerings 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.
Comparative information has been restated to give effect to the above changes.
IT Products: 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, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.
The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, Operating Segments. The Chairman of the Company evaluates the segments based on their revenue growth and operating income.
Assets and liabilities used in the Companys business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
Information on reportable segment for the three months ended September 30, 2015 is as follows:
IT Services | IT Products |
Reconciling Items |
Company total |
|||||||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Others | Total | |||||||||||||||||||||||||||||||||||||
Revenue |
32,252 | 13,746 | 19,510 | 17,664 | 28,146 | 9,110 | | 120,428 | 5,442 | (202 | ) | 125,668 | ||||||||||||||||||||||||||||||||
Segment Result |
6,882 | 3,023 | 3,238 | 3,272 | 6,370 | 1,554 | | 24,339 | (244 | ) | (123 | ) | 23,972 | |||||||||||||||||||||||||||||||
Unallocated |
277 | | | 277 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Segment Result Total |
24,616 | (244 | ) | (123 | ) | 24,249 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Finance expense |
(1,589 | ) | ||||||||||||||||||||||||||||||||||||||||||
Finance and other income |
6,318 | |||||||||||||||||||||||||||||||||||||||||||
Profit before tax |
28,978 | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
(6,515 | ) | ||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
22,463 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
3,530 |
28
Information on reportable segment for the three months ended September 30, 2016 is as follows:
IT Services | IT Products |
Reconciling Items |
Company total |
|||||||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Others | Total | |||||||||||||||||||||||||||||||||||||
Revenue |
33,583 | 20,883 | 20,708 | 16,881 | 29,463 | 9,848 | | 131,366 | 7,666 | (94 | ) | 138,938 | ||||||||||||||||||||||||||||||||
Segment Result |
6,379 | 3,234 | 3,584 | 3,443 | 6,175 | 1,594 | | 24,409 | (298 | ) | (103 | ) | 24,008 | |||||||||||||||||||||||||||||||
Unallocated |
(1,037 | ) | | | (1,037 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Segment Result Total |
23,372 | (298 | ) | (103 | ) | 22,971 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Finance expense |
(1,428 | ) | ||||||||||||||||||||||||||||||||||||||||||
Finance and other income |
5,105 | |||||||||||||||||||||||||||||||||||||||||||
Profit before tax |
26,648 | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
(5,909 | ) | ||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
20,739 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
4,849 |
Information on reportable segment for the six months ended September 30, 2015 is as follows:
IT Services | IT Products |
Reconciling Items |
Company total |
|||||||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Others | Total | |||||||||||||||||||||||||||||||||||||
Revenue |
63,273 | 26,734 | 38,210 | 35,240 | 55,109 | 17,635 | | 236,201 | 13,616 | (443 | ) | 249,374 | ||||||||||||||||||||||||||||||||
Segment Result |
13,829 | 5,777 | 6,320 | 6,859 | 12,203 | 2,801 | | 47,789 | (141 | ) | (225 | ) | 47,423 | |||||||||||||||||||||||||||||||
Unallocated |
808 | | | 808 | ||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Segment Result Total |
48,597 | (141 | ) | (225 | ) | 48,231 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Finance expense |
(2,875 | ) | ||||||||||||||||||||||||||||||||||||||||||
Finance and other income |
11,653 | |||||||||||||||||||||||||||||||||||||||||||
Profit before tax |
57,009 | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
(12,473 | ) | ||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
44,536 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
6,897 |
Information on reportable segment for the six months ended September 30, 2016 is as follows:
IT Services | IT Products |
Reconciling Items |
Company total |
|||||||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Others | Total | |||||||||||||||||||||||||||||||||||||
Revenue |
67,213 | 40,814 | 41,433 | 34,237 | 59,001 | 19,760 | | 262,458 | 13,596 | (140 | ) | 275,914 | ||||||||||||||||||||||||||||||||
Segment Result |
13,373 | 6,090 | 7,359 | 6,468 | 12,129 | 3,096 | | 48,515 | (666 | ) | (157 | ) | 47,692 | |||||||||||||||||||||||||||||||
Unallocated |
(1,874 | ) | | | (1,874 | ) | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Segment Result Total |
46,641 | (666 | ) | (157 | ) | 45,818 | ||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Finance expense |
(2,764 | ) | ||||||||||||||||||||||||||||||||||||||||||
Finance and other income |
10,305 | |||||||||||||||||||||||||||||||||||||||||||
Profit before tax |
53,359 | |||||||||||||||||||||||||||||||||||||||||||
Income tax expense |
(12,031 | ) | ||||||||||||||||||||||||||||||||||||||||||
Profit for the period |
41,328 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
9,514 |
29
The Company has four geographic segments: India, Americas, Europe and Rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:
Three months ended September 30 |
Six months ended September 30 |
|||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||
India |
₹ | 12,073 | ₹ | 11,729 | ₹ | 25,427 | ₹ | 24,528 | ||||||||
Americas |
64,094 | 72,879 | 125,155 | 143,135 | ||||||||||||
Europe |
30,629 | 32,985 | 60,635 | 66,566 | ||||||||||||
Rest of the world |
18,872 | 21,345 | 38,157 | 41,685 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
₹ | 125,668 | ₹ | 138,938 | ₹ | 249,374 | ₹ | 275,914 | |||||||||
|
|
|
|
|
|
|
|
Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.
No client individually accounted for more than 10% of the revenues during the three and six months ended September 30, 2015 and 2016.
Notes:
a) | Effective April 1, 2016, CODMs review of the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same. |
b) | Reconciling items includes elimination of inter-segment transactions, dividend income/ gains/ losses relating to strategic investments and other corporate activities. |
c) | 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. |
d) | Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues. |
e) | For the purpose of segment reporting, the Company has included the impact of foreign exchange gains / (losses), net in revenues (which is reported as a part of operating profit in the statement of income). |
f) | For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items. |
g) | The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. Corporate treasury provides internal financing to the business units offering multi-year payments terms. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items. |
25. | List of subsidiaries as of September 30, 2016 are provided in the table below. |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Wipro LLC (formerly Wipro, Inc.) | USA | |||||
Wipro Gallagher Solutions, Inc. | USA | |||||
Opus Capital Markets Consultants LLC | USA | |||||
Wipro Promax Analytics Solutions LLC | USA | |||||
Infocrossing, Inc. | USA |
30
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Wipro Insurance Solutions LLC | USA | |||||
Wipro Data Centre and Cloud Services, Inc. | USA | |||||
Wipro IT Services, Inc. | USA | |||||
HPH Holdings Corp. (A) | USA | |||||
Wipro Overseas IT Services Pvt. Ltd | India | |||||
Wipro Japan KK | Japan | |||||
Wipro Shanghai Limited | China | |||||
Wipro Trademarks Holding Limited | India | |||||
Wipro Travel Services Limited | India | |||||
Wipro Holdings (Mauritius) Limited | Mauritius | |||||
Wipro Holdings UK Limited | U.K. | |||||
Wipro Information Technology Austria GmbH(A) | Austria | |||||
Wipro Digital Aps (A) | Denmark | |||||
Wipro Europe Limited | U.K. | |||||
Wipro Promax Analytics Solutions (Europe) Limited | U.K. | |||||
Wipro Cyprus Private Limited | Cyprus | |||||
Wipro Doha LLC# | Qatar | |||||
Wipro Technologies S.A DE C.V | Mexico | |||||
Wipro BPO Philippines LTD. Inc | Philippines | |||||
Wipro Holdings Hungary | Hungary | |||||
Korlátolt Felelősségű Társaság | ||||||
Wipro Technologies SA | Argentina | |||||
Wipro Information Technology Egypt SAE | Egypt | |||||
Wipro Arabia Limited* | Saudi Arabia | |||||
Wipro Poland Sp. Z.o.o | Poland | |||||
Wipro IT Services Poland Sp. z o. o | Poland | |||||
Wipro Technologies Australia Pty Ltd. | Australia | |||||
Wipro Corporate Technologies Ghana Limited | Ghana | |||||
Wipro Technologies South Africa (Proprietary) Limited | South Africa | |||||
Wipro Technologies Nigeria Limited | Nigeria | |||||
Wipro Information Technology Netherlands BV. | Netherland | |||||
Wipro Portugal S.A.(A) | Portugal | |||||
Wipro Technologies Limited, Russia | Russia | |||||
Wipro Technology Chile SPA | Chile | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Information Technology Kazakhstan LLP | Kazakhstan |
31
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro IT Services Ukraine LLC | Ukraine | |||||
Wipro Technologies Norway AS | Norway | |||||
Wipro Technologies VZ, C.A. | Venezuela | |||||
Wipro Technologies Peru | Peru | |||||
S.A.C | ||||||
Wipro Technologies SRL | Romania | |||||
PT WT Indonesia | Indonesia | |||||
Wipro Australia Pty Limited | Australia | |||||
Wipro (Thailand) Co Limited | Thailand | |||||
Wipro Bahrain Limited WLL | Bahrain | |||||
Wipro Gulf LLC | Sultanate of | |||||
Oman | ||||||
Rainbow Software LLC | Iraq | |||||
Cellent AG | Germany | |||||
Cellent Mittelstandsberatung | Germany | |||||
GmbH | ||||||
Cellent AG Austria(A) | Austria | |||||
Wipro Networks Pte Limited | Singapore | |||||
Wipro (Dalian) Limited | China | |||||
Wipro Technologies SDN | Malaysia | |||||
BHD | ||||||
Wipro Chengdu Limited | China | |||||
Wipro Airport IT Services Limited* | India |
* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Limited and 74% of the equity securities of Wipro Airport IT Services Limited |
# | 51% of equity securities of Wipro Doha LLC are held by a local share holder. However, the beneficial interest in these holdings is with the Company. |
The Company controls The Wipro SA Broad Based Ownership Scheme Trust and Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A) | Step Subsidiary details of Wipro Information Technogoty Austria GmbH, Wipro Europe Limited, Wipro Portugal S.A, Wipro Digital Aps, Cellent AG Austria and HPH Holdings Corp. are as follows: |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | ||||
Wipro Information Technology Austria GmbH | Austria | |||||||
Wipro Technologies Austria GmbH | Austria | |||||||
New Logic Technologies SARL | France | |||||||
Wipro Europe Limited | U.K. | |||||||
Wipro UK Limited | U.K. | |||||||
Wipro Portugal S.A. | Portugal | |||||||
Wipro Retail UK Limited | U.K. |
32
Subsidiaries |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | ||||
Wipro do Brasil Technologia Ltda | Brazil | |||||||
Wipro Technologies Gmbh | Germany | |||||||
Wipro Do Brasil | Brazil | |||||||
Sistemetas De Informatica Ltd | ||||||||
Wipro Digital Aps | Denmark | |||||||
Designit A/S | Denmark | |||||||
Designit Denmark A/S | Denmark | |||||||
Designit MunchenGmbH | Germany | |||||||
Designit Oslo A/S | Norway | |||||||
Designit Sweden AB | Sweden | |||||||
Designit T.L.V Ltd. | Israel | |||||||
Designit Tokyo Ltd. | Japan | |||||||
Denextep Spain | Spain | |||||||
Digital, S.L | ||||||||
Designit Colombia S A S | Colombia | |||||||
Cellent AG Austria | Austria | |||||||
Frontworx | Austria | |||||||
Informationstechnologie AG | ||||||||
HPH Holdings Corp. | USA | |||||||
Healthplan Holdings, Inc. | USA | |||||||
Healthplan Services | USA | |||||||
Insurance Agency, Inc. | ||||||||
Healthplan Services, Inc. | USA | |||||||
Harrington Health Services Inc. | USA |
26. | Bank balances |
Details of balances with banks as of September 30, 2016 are as follows:
Bank Name |
In Current Account |
In Deposit Account |
Total | |||||||||
CITI Bank |
₹ | 12,840 | ₹ | 595 | ₹ | 13,435 | ||||||
ICICI Bank |
3 | 7,917 | 7,920 | |||||||||
Yes Bank |
| 7,450 | 7,450 | |||||||||
HSBC |
4,824 | 2,310 | 7,134 | |||||||||
Indusind Bank |
| 3,500 | 3,500 | |||||||||
Kotak Mahindra Bank |
97 | 3,000 | 3,097 | |||||||||
Axis Bank |
6 | 2,440 | 2,446 | |||||||||
Corporation Bank |
| 2,000 | 2,000 | |||||||||
Wells Fargo Bank |
1,744 | | 1,744 | |||||||||
ANZ Bank |
73 | 1,636 | 1,709 | |||||||||
Bank of Montreal |
477 | | 477 | |||||||||
Deutsche Bank |
429 | | 429 | |||||||||
Saudi British Bank |
192 | 231 | 423 | |||||||||
HDFC Bank |
224 | 125 | 349 | |||||||||
Standard Chartered Bank |
318 | | 318 | |||||||||
Uni Credit Bank |
209 | | 209 | |||||||||
Indian Overseas Bank |
1 | 196 | 197 | |||||||||
Funds in Transit |
724 | | 724 | |||||||||
Others including cash and cheques on hand |
1,606 | | 1,606 | |||||||||
|
|
|
|
|
|
|||||||
Total |
₹ | 23,767 | ₹ | 31,400 | ₹ | 55,167 | ||||||
|
|
|
|
|
|
33
27. | Buyback of equity shares |
During the current period, the Company has concluded the buyback of 40 million equity shares as approved by the Board of Directors on April 20, 2016. This has resulted in a total cash outflow of ₹ 25,000. In line with the requirement of the Companies Act 2013, an amount of ₹ 14,254 and ₹ 10,666 has been utilized from the share premium account and retained earnings respectively. Further, capital redemption reserves (included in other reserves) of ₹ 80 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, share capital has reduced by ₹ 80.
28. | Event after the reporting period |
On October 20, 2016 the Company entered in to definitive agreement to acquire Appirio, a global cloud services company for a consideration of US $ 500 million. The acquisition will strengthen Wipros cloud transformation practices.
The accompanying notes form an integral part of these condensed consolidated interim financial statements | ||||||
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for B S R & Co. LLP | Azim H Premji | N Vaghul | T K Kurien | |||
Chartered Accountants | Chairman | Director | Executive Vice-Chairman | |||
Firms Registration No: 101248W/W-100022 | & Managing Director | |||||
Jamil Khatri | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 102527 | ||||||
Mumbai | Bangalore | |||||
October 21, 2016 | October 21, 2016 |
34
Exhibit 99.5
WIPRO LIMITED
CIN: L32102KA1945PLC020800; Registered Office: Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore - 560035, India
Website: www.wipro.com; Email id info@wipro.com; Tel: +91-80-2844 0011; Fax: +91-80-2844 0054
STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2016 UNDER IFRS (IASB)
(₹ in millions, except share and per share data, unless otherwise stated)
Quarter ended | Six months ended | Year ended | ||||||||||||||||||||||||
Particulars |
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
March 31, 2016 |
||||||||||||||||||||
1 | Income from operations |
|||||||||||||||||||||||||
a) Net Sales/income from operations (net of excise duty) |
138,938 | 136,976 | 125,668 | 275,914 | 249,374 | 516,307 | ||||||||||||||||||||
b) Other operating income |
| | | | | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total income from operations (net) |
138,938 | 136,976 | 125,668 | 275,914 | 249,374 | 516,307 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
2 | Expenses |
|||||||||||||||||||||||||
a) Cost of materials consumed |
| | | | 1 | 2 | ||||||||||||||||||||
b) Purchase of stock-in-trade |
6,206 | 7,580 | 6,241 | 13,786 | 14,241 | 30,552 | ||||||||||||||||||||
c) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process |
1,248 | (1,069 | ) | (836 | ) | 179 | (739 | ) | (605 | ) | ||||||||||||||||
d) Employee benefit expense |
67,105 | 66,177 | 61,314 | 133,282 | 120,321 | 245,534 | ||||||||||||||||||||
e) Depreciation and amortisation expense |
4,849 | 4,665 | 3,530 | 9,514 | 6,897 | 14,965 | ||||||||||||||||||||
f) Sub contracting/technical fees/third party application |
19,919 | 20,360 | 15,880 | 40,279 | 30,441 | 67,769 | ||||||||||||||||||||
g) Other expenses |
16,640 | 16,416 | 15,290 | 33,056 | 29,981 | 61,230 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total expenses |
115,967 | 114,129 | 101,419 | 230,096 | 201,143 | 419,447 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
3 | Profit from operations before other income, finance costs and exceptional items (1-2) |
22,971 | 22,847 | 24,249 | 45,818 | 48,231 | 96,860 | |||||||||||||||||||
4 | Other Income |
5,105 | 5,200 | 6,318 | 10,305 | 11,653 | 23,655 | |||||||||||||||||||
5 | Profit from ordinary activities before finance costs and exceptional items (3+4) |
28,076 | 28,047 | 30,567 | 56,123 | 59,884 | 120,515 | |||||||||||||||||||
6 | Finance Costs |
1,428 | 1,336 | 1,589 | 2,764 | 2,875 | 5,582 | |||||||||||||||||||
7 | Profit from ordinary activities after finance costs but before exceptional items (5-6) |
26,648 | 26,711 | 28,978 | 53,359 | 57,009 | 114,933 | |||||||||||||||||||
8 | Exceptional items |
| | | | | | |||||||||||||||||||
9 | Profit from ordinary activities before tax (7+8) |
26,648 | 26,711 | 28,978 | 53,359 | 57,009 | 114,933 | |||||||||||||||||||
10 | Tax expense |
5,909 | 6,122 | 6,515 | 12,031 | 12,473 | 25,366 | |||||||||||||||||||
11 | Net profit from ordinary activities after tax (9-10) |
20,739 | 20,589 | 22,463 | 41,328 | 44,536 | 89,567 | |||||||||||||||||||
12 | Extraordinary items (net of tax expense) |
| | | | | | |||||||||||||||||||
13 | Net profit for the period (11+12) |
20,739 | 20,589 | 22,463 | 41,328 | 44,536 | 89,567 | |||||||||||||||||||
14 | Share of Profit/(loss) of associates |
| | | | | ||||||||||||||||||||
15 | Minority interest |
(67 | ) | (71 | ) | (54 | ) | (138 | ) | (210 | ) | (492 | ) | |||||||||||||
16 |
Net profit after taxes, minority interest and share of profit of associates (13+14+15) |
20,672 | 20,518 | 22,409 | 41,190 | 44,326 | 89,075 | |||||||||||||||||||
17 | Paid up equity share capital |
4,861 | 4,941 | 4,940 | 4,861 | 4,940 | 4,941 | |||||||||||||||||||
18 | Reserves excluding revaluation reserves |
460,219 | ||||||||||||||||||||||||
19 |
EARNINGS PER SHARE (EPS) |
|||||||||||||||||||||||||
Basic (in ₹) |
8.54 | 8.35 | 9.12 | 16.89 | 18.05 | 36.26 | ||||||||||||||||||||
Diluted (in ₹) |
8.52 | 8.33 | 9.10 | 16.84 | 18.01 | 36.19 | ||||||||||||||||||||
After extraordinary items |
||||||||||||||||||||||||||
Basic (in ₹) |
8.54 | 8.35 | 9.12 | 16.89 | 18.05 | 36.26 | ||||||||||||||||||||
Diluted (in ₹) |
8.52 | 8.33 | 9.10 | 16.84 | 18.01 | 36.19 |
1
1. | The audited consolidated interim financial results of the Company for the quarter ended September 30, 2016 have been approved by the Board of Directors of the Company at its meeting held on October 21, 2016. The statutory auditors have expressed an unqualified audit opinion on these financial results. |
2. | The above consolidated interim financial results have been prepared from the condensed consolidated interim financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (IFRS), as issued by the International Accounting Standards Board (IASB). Effective April 1, 2016, the Company has early adopted IFRS 9, Financial Instruments. The comparative information has been adjusted to effect this change retrospectively. |
3. | The total revenue from operations represent the aggregate revenue and includes foreign exchange gains/(losses), net amounting to ₹ 1,281, ₹ 984 and ₹ 533 for the quarter ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively, ₹ 2,265 and ₹ 1,863 for the half year ended September 30, 2016 and September 30, 2015 and ₹ 3,867 for the year ended March 31, 2016. |
4. | List of subsidiaries as of September 30, 2016 are provided in the table below: |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Wipro LLC (formerly Wipro, Inc.) |
USA | |||||
Wipro Gallagher Solutions, Inc. | USA | |||||
Opus Capital Markets Consultants LLC | USA | |||||
Wipro Promax Analytics Solutions LLC | USA | |||||
Infocrossing, Inc. | USA | |||||
Wipro Insurance Solutions LLC | USA | |||||
Wipro Data Centre and Cloud Services, Inc. | USA | |||||
Wipro IT Services, Inc. | USA | |||||
HPH Holdings Corp. (A) | USA | |||||
Wipro Overseas IT Services Pvt. Ltd | India | |||||
Wipro Japan KK | Japan | |||||
Wipro Shanghai Limited | China | |||||
Wipro Trademarks Holding Limited | India | |||||
Wipro Travel Services Limited | India | |||||
Wipro Holdings (Mauritius) Limited | Mauritius | |||||
Wipro Holdings UK Limited | U.K. | |||||
Wipro Information Technology Austria GmbH(A) | Austria | |||||
Wipro Digital Aps (A) | Denmark | |||||
Wipro Europe Limited | U.K. | |||||
Wipro Promax Analytics Solutions (Europe) Limited | U.K.
|
2
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Wipro Cyprus Private Limited | Cyprus | |||||
Wipro Doha LLC# | Qatar | |||||
Wipro Technologies S.A DE C.V | Mexico | |||||
Wipro BPO Philippines LTD. Inc | Philippines | |||||
Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Technologies SA | Argentina | |||||
Wipro Information Technology Egypt SAE | Egypt | |||||
Wipro Arabia Limited* | Saudi Arabia | |||||
Wipro Poland Sp. Z.o.o | Poland | |||||
Wipro IT Services Poland Sp. z.o. o | Poland | |||||
Wipro Technologies Australia Pty Ltd. | Australia | |||||
Wipro Corporate Technologies Ghana Limited | Ghana | |||||
Wipro Technologies South Africa (Proprietary) Limited | South Africa | |||||
Wipro Technologies Nigeria Limited |
Nigeria | |||||
Wipro Information Technology Netherlands BV. | Netherland | |||||
Wipro Portugal S.A.(A) | Portugal | |||||
Wipro Technologies Limited, Russia | Russia | |||||
Wipro Technology Chile SPA | Chile | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Information Technology Kazakhstan LLP | Kazakhstan | |||||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro IT Services Ukraine LLC | Ukraine | |||||
Wipro Technologies Norway AS |
Norway | |||||
Wipro Technologies VZ, C.A. | Venezuela | |||||
Wipro Technologies Peru S.A.C | Peru | |||||
Wipro Technologies SRL PT WT Indonesia Wipro Australia Pty Limited Wipro (Thailand) Co Limited Wipro Bahrain Limited WLL Wipro Gulf LLC
|
Romania Indonesia Australia Thailand Bahrain Sultanate of Oman | |||||
Rainbow Software LLC | Iraq | |||||
Cellent AG | Germany Germany |
3
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | |||
Cellent Mittelstandsberatung GmbH Cellent AG Austria(A) |
Austria | |||||
Wipro Networks Pte Limited | Wipro (Dalian) Limited Wipro Technologies SDN BHD | Singapore China Malaysia | ||||
Wipro Chengdu Limited | China | |||||
Wipro Airport IT Services Limited* |
India |
* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Limited and 74% of the equity securities of Wipro Airport IT Services Limited |
# | 51% of equity securities of Wipro Doha LLC are held by a local share holder. However, the beneficial interest in these holdings is with the Company. |
The Company controls The Wipro SA Broad Based Ownership Scheme Trust and Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A) | Step Subsidiary details of Wipro Information Technogoty Austria GmbH, Wipro Europe Limited, Wipro Portugal S.A, Wipro Digital Aps, Cellent AG Austria and HPH Holdings Corp. are as follows: |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | ||||
Wipro Information Technogoty Austria GmbH |
Wipro Technologies Austria GmbH New Logic Technologies SARL |
Austria
Austria
France | ||||||
Wipro Europe Limited |
Wipro UK Limited | U.K.
U.K. | ||||||
Wipro Portugal S.A. | Portugal | |||||||
Wipro Retail UK Limited | U.K. | |||||||
Wipro do Brasil | Brazil | |||||||
Technologia Ltda | ||||||||
Wipro Technologies | Germany | |||||||
Gmbh | Brazil | |||||||
Wipro Do Brasil | ||||||||
Sistemetas De Informatica Ltd |
4
Subsidiaries |
Subsidiaries |
Subsidiaries |
Subsidiaries |
Country of Incorporation | ||||
Wipro Digital Aps |
Designit A/S |
Designit Denmark A/S Designit MunchenGmbH Designit Oslo A/S Designit Sweden AB Designit T.L.V Ltd. Designit Tokyo Ltd. Denextep Spain Digital, S.L |
Designit Colombia S A S | Denmark Denmark Denmark Germany
Norway Sweden Israel Japan Spain
Colombia | ||||
Cellent AG Austria |
Frontworx Informationstechnologie AG |
Austria Austria | ||||||
HPH Holdings Corp. |
Healthplan Holdings, Inc. Healthplan Services Insurance Agency, Inc. Healthplan Services, Inc. Harrington Health Services Inc. |
USA USA USA
USA USA |
5. | Segment Information |
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 customers organized by industry verticals. Effective April 1, 2016, we realigned our industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named Communications. The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as Consumer Business Unit industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the Manufacturing and Technology industry vertical.
The revised industry verticals are as follows: Finance Solutions (BFSI), Healthcare, Lifesciences & Services (HLS), Consumer (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing & Technology (MNT), Communications (COMM). IT Services segment 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 offerings 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.
Comparative information has been restated to give effect to the above changes.
IT Products: 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, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.
The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker
(CODM) as defined by IFRS 8, Operating Segments. The Chairman of the Company evaluates the segments based on their revenue growth and operating income.
5
Assets and liabilities used in the Companys business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
Information on reportable segment for the quarter ended September 30, 2016, June 30, 2016 and September 30, 2015, half year ended September 30, 2016 and September 30, 2015 and year ended March 31, 2016 is as follows:
Quarter ended | Six months ended | Year ended | ||||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
March 31, 2016 |
|||||||||||||||||||
Particulars |
Audited | Audited | Audited | Audited | Audited | Audited | ||||||||||||||||||
Revenue |
||||||||||||||||||||||||
IT Services |
||||||||||||||||||||||||
BFSI |
33,583 | 33,630 | 32,252 | 67,213 | 63,273 | 128,147 | ||||||||||||||||||
HLS |
20,883 | 19,931 | 13,746 | 40,814 | 26,734 | 58,358 | ||||||||||||||||||
CBU |
20,708 | 20,725 | 19,510 | 41,433 | 38,210 | 79,514 | ||||||||||||||||||
ENU |
16,881 | 17,356 | 17,664 | 34,237 | 35,240 | 70,866 | ||||||||||||||||||
MNT |
29,463 | 29,538 | 28,146 | 59,001 | 55,109 | 113,422 | ||||||||||||||||||
COMM |
9,848 | 9,912 | 9,110 | 19,760 | 17,635 | 37,009 | ||||||||||||||||||
Others |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total of IT Services |
131,366 | 131,092 | 120,428 | 262,458 | 236,201 | 487,316 | ||||||||||||||||||
IT Products |
7,666 | 5,930 | 5,442 | 13,596 | 13,616 | 29,722 | ||||||||||||||||||
Reconciling Items |
(94 | ) | (46 | ) | (202 | ) | (140 | ) | (443 | ) | (731 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
138,938 | 136,976 | 125,668 | 275,914 | 249,374 | 516,307 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Segment Result |
||||||||||||||||||||||||
IT Services |
||||||||||||||||||||||||
BFSI |
6,379 | 6,994 | 6,882 | 13,373 | 13,829 | 27,902 | ||||||||||||||||||
HLS |
3,234 | 2,856 | 3,023 | 6,090 | 5,777 | 12,009 | ||||||||||||||||||
CBU |
3,584 | 3,775 | 3,238 | 7,359 | 6,320 | 13,590 | ||||||||||||||||||
ENU |
3,443 | 3,025 | 3,272 | 6,468 | 6,859 | 13,475 | ||||||||||||||||||
MNT |
6,175 | 5,954 | 6,370 | 12,129 | 12,203 | 24,223 | ||||||||||||||||||
COMM |
1,594 | 1,502 | 1,554 | 3,096 | 2,801 | 5,990 | ||||||||||||||||||
Others |
| | | | | | ||||||||||||||||||
Unallocated |
(1,037 | ) | (837 | ) | 277 | (1,874 | ) | 808 | 1,064 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total of IT Services |
23,372 | 23,269 | 24,616 | 46,641 | 48,597 | 98,253 | ||||||||||||||||||
IT Products |
(298 | ) | (368 | ) | (244 | ) | (666 | ) | (141 | ) | (1,007 | ) | ||||||||||||
Reconciling Items |
(103 | ) | (54 | ) | (123 | ) | (157 | ) | (225 | ) | (386 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
22,971 | 22,847 | 24,249 | 45,818 | 48,231 | 96,860 | ||||||||||||||||||
Finance Expense |
(1,428 | ) | (1,336 | ) | (1,589 | ) | (2,764 | ) | (2,875 | ) | (5,582 | ) | ||||||||||||
Finance and Other Income |
5,105 | 5,200 | 6,318 | 10,305 | 11,653 | 23,655 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit before tax |
26,648 | 26,711 | 28,978 | 53,359 | 57,009 | 114,933 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
a) | Effective April 1, 2016, CODMs review of the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same. |
6
b) | Reconciling items includes elimination of inter-segment transactions, dividend income/ gains/ losses relating to strategic investments and other corporate activities. |
c) | 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. |
d) | Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues. |
e) | For the purpose of segment reporting, the Company has included the impact of foreign exchange gains / (losses), net amounting to ₹ 1,281, ₹ 984 and ₹ 533 for the quarter ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively, ₹ 2,265 and ₹ 1,863 for the half year ended September 30, 2016 and September 30, 2015 and ₹ 3,867 for the year ended March 31, 2016 in revenues (which is reported as a part of operating profit in the statement of income). |
f) | For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items. |
g) | The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. Corporate treasury provides internal financing to the business units offering multi-year payments terms. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items. |
7
6. | Consolidated Statement of Assets and liabilities |
Particulars |
As at September 30, 2016 |
As at March 31, 2016 |
||||||||
I. |
EQUITY AND LIABILITIES |
|||||||||
1. |
Shareholders funds |
|||||||||
Share capital |
4,861 | 4,941 | ||||||||
Reserves and surplus |
478,466 | 460,219 | ||||||||
|
|
|
|
|||||||
483,327 | 465,160 | |||||||||
|
|
|
|
|||||||
2. |
Minority Interest |
2,363 | 2,224 | |||||||
3. |
Non- current liabilities |
|||||||||
Long-term borrowings |
18,004 | 17,361 | ||||||||
Deferred tax liabilities |
4,436 | 5,108 | ||||||||
Other long term liabilities |
7,295 | 7,344 | ||||||||
Long-term provisions |
7,809 | 8,245 | ||||||||
|
|
|
|
|||||||
37,544 | 38,058 | |||||||||
|
|
|
|
|||||||
4. |
Current liabilities | |||||||||
Short term borrowings |
106,600 | 107,860 | ||||||||
Trade payables and accrued expense |
68,487 | 68,187 | ||||||||
Other current liabilities |
30,426 | 34,237 | ||||||||
Short term provisions |
9,996 | 8,277 | ||||||||
|
|
|
|
|||||||
215,509 | 218,561 | |||||||||
|
|
|
|
|||||||
TOTAL EQUITY AND LIABILTIES |
738,743 | 724,003 | ||||||||
|
|
|
|
|||||||
II |
ASSETS | |||||||||
1. |
Non-current assets | |||||||||
Fixed assets |
||||||||||
Tangible assets |
69,103 | 64,952 | ||||||||
Intangible assets |
14,479 | 15,841 | ||||||||
Goodwill |
101,864 | 101,991 | ||||||||
Non-current investments |
5,092 | 4,907 | ||||||||
Deferred tax assets |
3,530 | 4,286 | ||||||||
Long-term loans and advances |
11,938 | 11,751 | ||||||||
Other non-current assets |
16,873 | 16,088 | ||||||||
|
|
|
|
|||||||
222,879 | 219,816 | |||||||||
|
|
|
|
|||||||
2. |
Current assets | |||||||||
Current investments |
258,499 | 204,244 | ||||||||
Inventories |
5,215 | 5,390 | ||||||||
Trade receivables |
101,170 | 100,976 | ||||||||
Cash and bank balances |
55,167 | 99,049 | ||||||||
Short-term loans and advances |
8,131 | 7,812 | ||||||||
Other current assets |
87,682 | 86,716 | ||||||||
|
|
|
|
|||||||
515,864 | 504,187 | |||||||||
|
|
|
|
|||||||
TOTAL ASSETS |
738,743 | 724,003 | ||||||||
|
|
|
|
8
7. | Buyback of equity shares |
During the current period, the Company has concluded the buyback of 40 million equity shares as approved by the Board of Directors on April 20, 2016. This has resulted in a total cash outflow of ₹ 25,000. In line with the requirement of the Companies Act 2013, an amount of ₹ 14,254 and ₹ 10,666 has been utilized from the share premium account and retained earnings respectively. Further, capital redemption reserves (included in other reserves) of ₹ 80 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, share capital has reduced by ₹ 80.
8. | Event after the reporting period |
On October 20, 2016 the Company entered in to definitive agreement to acquire Appirio Inc., a global cloud services company for a consideration of US $ 500 million. The acquisition will strengthen Wipros cloud transformation practices.
By order of the Board, | For Wipro Limited | |||
Azim H Premji | ||||
Place: Bangalore | Chairman & | |||
Date: October 21, 2016 | Managing Director |
9
Exhibit 99.6
Wipro Limited
Results for the Quarter ended September 30, 2016
Operating Metrics Pertaining to IT Services Segment
A. IT Services
FY 16-17 | FY 15-16 | |||||||||||||||||||||||||||||
Q2 | Q1 | FY | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Revenue & OM% |
IT Services Revenues ($M) | 1,916.3 | 1,930.8 | 7,346.3 | 1,882.0 | 1,838.3 | 1,831.9 | 1,794.1 | ||||||||||||||||||||||
Sequential Growth | -0.8 | % | 2.6 | % | 3.7 | % | 2.4 | % | 0.3 | % | 2.1 | % | 1.1 | % | ||||||||||||||||
Sequential Growth in Constant Currency* |
0.9 | % | 2.0 | % | 7.6 | % | 2.7 | % | 1.4 | % | 3.1 | % | 0.2 | % | ||||||||||||||||
Operating Margin%** | 17.8 | % | 17.8 | % | 20.2 | % | 19.7 | % | 19.9 | % | 20.4 | % | 20.7 | % | ||||||||||||||||
Service Line MIx |
Practices^ | |||||||||||||||||||||||||||||
Analytics | 7.3 | % | 7.4 | % | 7.4 | % | 7.2 | % | 7.4 | % | 7.5 | % | 7.5 | % | ||||||||||||||||
Application Services | 43.8 | % | 44.7 | % | 46.6 | % | 45.3 | % | 46.7 | % | 46.8 | % | 47.5 | % | ||||||||||||||||
Business Process Services | 13.4 | % | 12.9 | % | 9.8 | % | 10.6 | % | 9.8 | % | 9.8 | % | 9.3 | % | ||||||||||||||||
Global Infrastructure Services | 28.2 | % | 27.9 | % | 28.3 | % | 28.9 | % | 28.1 | % | 28.0 | % | 28.0 | % | ||||||||||||||||
Product Engineering | 7.3 | % | 7.1 | % | 7.9 | % | 8.0 | % | 8.0 | % | 7.9 | % | 7.7 | % | ||||||||||||||||
SBU MIx |
Strategic Business Units*** | |||||||||||||||||||||||||||||
Communications | 7.5 | % | 7.6 | % | 7.6 | % | 7.7 | % | 7.7 | % | 7.6 | % | 7.4 | % | ||||||||||||||||
Consumer | 15.7 | % | 15.8 | % | 16.3 | % | 16.4 | % | 16.5 | % | 16.2 | % | 16.2 | % | ||||||||||||||||
Energy, Natural Resources & Utilities |
12.9 | % | 13.2 | % | 14.6 | % | 14.0 | % | 14.4 | % | 14.7 | % | 15.2 | % | ||||||||||||||||
Finance Solutions | 25.5 | % | 25.6 | % | 26.3 | % | 25.4 | % | 26.2 | % | 26.7 | % | 26.8 | % | ||||||||||||||||
Healthcare, Life Sciences & Services |
16.0 | % | 15.3 | % | 12.0 | % | 13.3 | % | 12.0 | % | 11.4 | % | 11.2 | % | ||||||||||||||||
Manufacturing & Technology | 22.4 | % | 22.5 | % | 23.2 | % | 23.2 | % | 23.2 | % | 23.4 | % | 23.2 | % | ||||||||||||||||
Geography MIx |
Geography | |||||||||||||||||||||||||||||
Americas | 54.8 | % | 53.5 | % | 52.7 | % | 52.5 | % | 52.8 | % | 53.0 | % | 52.5 | % | ||||||||||||||||
APAC and Other Emerging Markets |
10.8 | % | 10.7 | % | 11.2 | % | 10.9 | % | 11.4 | % | 11.2 | % | 11.3 | % | ||||||||||||||||
Europe | 24.0 | % | 25.4 | % | 25.3 | % | 25.6 | % | 24.8 | % | 25.2 | % | 25.6 | % | ||||||||||||||||
India & Middle East business | 10.4 | % | 10.4 | % | 10.8 | % | 11.0 | % | 11.0 | % | 10.6 | % | 10.6 | % | ||||||||||||||||
Guidance |
Guidance ($MN) | 1,931-1,950 | 1,901-1,939 | 1,875-1,912 | 1,841-1,878 | 1,821-1,857 | 1,765-1,793 | |||||||||||||||||||||||
Guidance restated based on actual currency realized ($MN) |
1,899-1,918 | 1,912-1,950 | 1,869-1,906 | 1,821-1,858 | 1,803-1,839 | 1,781-1,809 | ||||||||||||||||||||||||
IT Services Revenues ($M) | 1,916.3 | 1,930.8 | 7,346.3 | 1,882.0 | 1,838.3 | 1,831.9 | 1,794.1 | |||||||||||||||||||||||
Customer Relationships |
Customer size distribution (TTM) |
|||||||||||||||||||||||||||||
> $100M | 8 | 9 | 9 | 9 | 9 | 10 | 10 | |||||||||||||||||||||||
> $75M | 19 | 19 | 18 | 18 | 17 | 17 | 17 | |||||||||||||||||||||||
> $50M | 33 | 33 | 33 | 33 | 32 | 31 | 30 | |||||||||||||||||||||||
> $20M | 91 | 91 | 89 | 89 | 85 | 85 | 86 | |||||||||||||||||||||||
> $10M | 171 | 170 | 160 | 160 | 154 | 154 | 151 | |||||||||||||||||||||||
> $5M | 258 | 252 | 248 | 248 | 247 | 244 | 244 | |||||||||||||||||||||||
> $3M | 341 | 336 | 331 | 331 | 325 | 321 | 314 | |||||||||||||||||||||||
> $1M | 571 | 565 | 550 | 550 | 536 | 533 | 537 | |||||||||||||||||||||||
Revenue from Existing customers % |
98.6 | % | 99.7 | % | 98.1 | % | 96.5 | % | 97.9 | % | 98.5 | % | 99.6 | % | ||||||||||||||||
Number of new customers | 47 | 50 | 261 | 119 | 39 | 67 | 36 | |||||||||||||||||||||||
Customer Metrics | Total Number of active customers |
1180 | 1208 | 1223 | 1223 | 1105 | 1100 | 1071 | ||||||||||||||||||||||
Customer Concentration |
||||||||||||||||||||||||||||||
Top customer | 2.6 | % | 2.5 | % | 3.1 | % | 2.7 | % | 3.2 | % | 3.1 | % | 3.3 | % | ||||||||||||||||
Top 5 | 10.1 | % | 10.3 | % | 11.6 | % | 11.0 | % | 11.5 | % | 11.7 | % | 12.2 | % | ||||||||||||||||
Top 10 | 17.5 | % | 17.6 | % | 19.3 | % | 18.2 | % | 19.3 | % | 19.8 | % | 20.1 | % |
* | Constant currency revenues for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period. |
** | Effective April 1, 2016, the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same. |
*** | Effective April 1, 2016, we realigned our industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named Communications. The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as Consumer Business Unit industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the Manufacturing and Technology industry vertical. |
^ | We have re-classified some portions of work amongst Service lines effective April 1, 2016 and therefore the growth rates (YoY) may not be comparable. |
Page 1 of 2
FY 16-17 | FY 15-16 | |||||||||||||||||||||||||||||
Q2 | Q1 | FY | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Currency Mix |
% of Revenue |
|||||||||||||||||||||||||||||
USD |
61 | % | 60 | % | 60 | % | 60 | % | 60 | % | 60 | % | 61 | % | ||||||||||||||||
GBP |
10 | % | 11 | % | 12 | % | 11 | % | 12 | % | 13 | % | 14 | % | ||||||||||||||||
EUR |
9 | % | 9 | % | 8 | % | 9 | % | 8 | % | 8 | % | 7 | % | ||||||||||||||||
INR |
8 | % | 8 | % | 7 | % | 7 | % | 7 | % | 7 | % | 6 | % | ||||||||||||||||
AUD |
4 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||||
CAD |
2 | % | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||||
Others |
6 | % | 6 | % | 7 | % | 7 | % | 7 | % | 6 | % | 6 | % | ||||||||||||||||
Employee Metrics |
Closing Head Count - IT Services |
174,238 | 173,863 | 172,912 | 172,912 | 170,664 | 168,396 | 161,789 | ||||||||||||||||||||||
Utilization |
||||||||||||||||||||||||||||||
(IT Services excl BPS, IFOX, Designit, cellent, HPS and India & Middle East) |
||||||||||||||||||||||||||||||
Gross Utilization |
71.2 | % | 69.9 | % | 68.8 | % | 68.1 | % | 66.4 | % | 69.5 | % | 71.3 | % | ||||||||||||||||
Net Utilization (excl Support) |
80.2 | % | 78.8 | % | 76.6 | % | 76.1 | % | 73.8 | % | 77.2 | % | 79.4 | % | ||||||||||||||||
Net Utilization (Excluding Trainees) |
82.8 | % | 79.7 | % | 79.9 | % | 77.5 | % | 78.0 | % | 82.3 | % | 81.9 | % | ||||||||||||||||
Attrition |
||||||||||||||||||||||||||||||
IT Services excl BPS, Designit, cellent and HPS |
||||||||||||||||||||||||||||||
Voluntary TTM |
16.6 | % | 16.5 | % | 16.1 | % | 16.1 | % | 16.3 | % | 16.3 | % | 16.4 | % | ||||||||||||||||
Voluntary Quarterly Annualized |
17.2 | % | 17.9 | % | 16.1 | % | 14.9 | % | 16.3 | % | 17.0 | % | 16.4 | % | ||||||||||||||||
BPS % - Quarterly |
12.2 | % | 11.7 | % | 11.0 | % | 11.1 | % | 9.9 | % | 10.2 | % | 12.0 | % | ||||||||||||||||
BPS % - Post Training Quarterly |
10.8 | % | 9.0 | % | 9.3 | % | 9.9 | % | 8.8 | % | 8.5 | % | 9.3 | % | ||||||||||||||||
Sales & Support Staff - IT Services (avg) |
14,543 | 14,324 | 13,140 | 13,737 | 13,239 | 13,068 | 12,517 | |||||||||||||||||||||||
B. IT Services (Excluding Infocrossing, BPS, Designit, cellent, HPS and India & Middle East Business) |
| |||||||||||||||||||||||||||||
Service delivery |
Revenue from FPP |
56.4 | % | 56.0 | % | 55.2 | % | 56.9 | % | 55.9 | % | 53.4 | % | 54.5 | % | |||||||||||||||
Onsite Revenue - % of Services |
53.9 | % | 54.4 | % | 54.1 | % | 54.2 | % | 53.8 | % | 53.9 | % | 54.6 | % | ||||||||||||||||
Off shore Revenue - % of Services |
46.1 | % | 45.6 | % | 45.9 | % | 45.8 | % | 46.2 | % | 46.1 | % | 45.4 | % |
C. Growth Metrics For Quarter ended September 30, 2016 | ||||||||||||||||
Constant | Constant | |||||||||||||||
Seq % | YoY% | Currency | Currency | |||||||||||||
Seq % | YoY % | |||||||||||||||
IT Services |
-0.8 | % | 4.6 | % | 0.9 | % | 7.2 | % | ||||||||
Verticals |
||||||||||||||||
Communications |
-1.4 | % | 3.7 | % | 1.1 | % | 8.2 | % | ||||||||
Consumer Business Unit |
-1.0 | % | 1.6 | % | 0.4 | % | 3.7 | % | ||||||||
Energy, Natural Resources & Utilities |
-3.5 | % | -8.2 | % | 1.3 | % | -1.8 | % | ||||||||
Finance Solutions |
-1.2 | % | -0.3 | % | 0.7 | % | 2.8 | % | ||||||||
Healthcare, Life Sciences & Services |
3.9 | % | 46.3 | % | 4.3 | % | 46.9 | % | ||||||||
Manufacturing and Technology |
-1.3 | % | 0.3 | % | -1.0 | % | 0.5 | % | ||||||||
Geography |
||||||||||||||||
Americas |
1.6 | % | 8.1 | % | 1.8 | % | 8.4 | % | ||||||||
APAC and Other Emerging Markets |
0.3 | % | 1.0 | % | -0.1 | % | 0.2 | % | ||||||||
Europe |
-6.0 | % | -0.4 | % | 0.3 | % | 9.0 | % | ||||||||
India & Middle East business |
-1.1 | % | 2.8 | % | -1.1 | % | 4.3 | % | ||||||||
Practices^ |
||||||||||||||||
Analytics |
-2.1 | % | ||||||||||||||
Application Services |
-2.6 | % | ||||||||||||||
Business Process Services |
3.3 | % | ||||||||||||||
Global Infrastructure Services |
0.4 | % | ||||||||||||||
Product Engineering |
0.7 | % |
D. Annexure to Datasheet | ||||||||||||||||
Segment-wise breakup of Cost of Revenues, S&M and G&A Particulars |
Q2 FY 16-17 (INR Mn.) | |||||||||||||||
IT Services |
IT Products |
Reconciling Items |
Total | |||||||||||||
Cost of revenues |
90,767 | 7,010 | 31 | 97,808 | ||||||||||||
Selling and marketing expenses |
9,510 | 128 | -24 | 9,614 | ||||||||||||
General and administrative expenses |
7,717 | 826 | 2 | 8,545 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
107,994 | 7,964 | 9 | 115,967 | ||||||||||||
|
|
|
|
|
|
|
|
Page 2 of 2
Exhibit 99.7
Wipro to acquire Appirio, A Global Cloud Services Company
Bangalore, India and Indianapolis, USA. October 20, 2016 Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading information technology, consulting and business process services company, today announced that it has signed a definitive agreement to acquire Appirio, a global cloud services company that creates next generation worker and customer experiences for a purchase consideration of USD 500 Million.
Established in 2006, Appirio is headquartered in Indianapolis with offices in San Francisco, Dublin, London, Jaipur, and Tokyo and has 1250 employees worldwide. Appirio is a trusted partner to some of the worlds leading brands, including Stryker, Robert Half, Johnson Controls, Cardinal Health, Coca-Cola, eBay, Facebook, Home Depot, and Sony PlayStation.
Once completed, Wipros acquisition of Appirio will create one of the worlds largest cloud transformation practices, a game changer in todays as-a-service and digital economy. Appirio also brings to Wipro, Topcoder, a leading crowdsourcing marketplace connecting over a million designers, developers and data scientists around the world with customers.
In an increasingly digital world, as consumer behaviors and expectations continue to be reshaped by experiences, companies are recognizing that they need to transform how they engage with customers and employees by leveraging the power of Cloud. Appirio and Wipro are coming together to unlock transformational synergies in the applications space and help enterprises create new business models, said Abidali Z. Neemuchwala, Chief Executive Officer & Member of the Board, Wipro Limited. Wipro will consolidate its existing cloud applications practices of Salesforce and Workday under the Appirio brand and structure. Chris Barbin, Chief Executive Officer of Appirio, will lead the expanded business.
When you combine Wipros global scale and deep digital focus with Appirios transformative worker and customer experience expertise, and best in class team, brand, and partners, you create a formidable force in the industry, said Chris Barbin, Chief Executive Officer of Appirio. Together, our aim is to dominate the market and claim the top spots in industry Net Promoter Score, market share, and best places to work.
Chris and his team have spent the last decade building Appirio into a global leader delivering amazing customer experiences with Salesforce, said Marc Benioff, Chairman and Chief Executive Officer, Salesforce. I couldnt be more proud of Appirio as it joins Wipro, where together they will continue to drive customer success on a much larger scale.
As one of our earliest partners, Appirio has played a key role in the Workday Community, and were thrilled to see such a great opportunity for the teams continued growth, said Aneel Bhusri, Co-founder and Chief Executive Officer, Workday. With Appirio, Wipro gains an organization with deep industry expertise and a strong commitment to customer service, dedicated to helping companies take their businesses to the cloud.
The acquisition is subject to customary closing conditions and regulatory approvals and is expected to be closed in the quarter ending December 31, 2016. William Blair & Company acted as financial advisor to Appirio during the transaction.
About Wipro Limited
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) 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 170,000, serving clients across 6 continents. For more information, please visit www.wipro.com
About Appirio
Appirio is a global services company that helps customers create next-generation Worker and Customer Experience using the latest cloud technologies. Our free-thinking consultants deliver unmatched customer value by creating actionable strategies, delivering results quickly, and helping organizations adapt to a new experience-driven era. We do this by harnessing the power of one of the worlds largest crowdsourcing communities and thousands of pre-built solution accelerators. Appirio is a trusted partner to some of the worlds largest brands, including Stryker, Robert Half, Johnson Controls, Cardinal Health, Coca-Cola, eBay, Facebook, Home Depot, and Sony PlayStation
Media Contact:
Vipin Nair
Wipro Limited
vipin.nair1@wipro.com
Forward-looking and Cautionary Statements
Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements 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. 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 companys 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.
Exhibit 99.8
Wipro Limited | October 20, 2016 |
Disclosure under regulation 30 of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
Sr. No. |
Particulars |
Description | ||
1 | Target Name | Appirio Inc and its subsidiaries (Appirio) | ||
2 | Related party transaction | No | ||
3 | Industry of Target entity | IT Consulting and Software services | ||
4 | Acquisition objectives | This acquisition will significantly enhance Wipros market share & positioning in the Cloud Enterprise Applications space, especially in Salesforce and Workday. Wipro will be able to become a partner of choice for clients who are looking at modernizing their processes and platforms onto Next Generation Cloud Applications. | ||
5 | Government & regulatory Approval required | Approval under the HartScottRodino Antitrust Improvements Act, in the United States of America | ||
6 | Time period for completion | Closing is expected in the quarter ending December 31, 2016 | ||
7 | Nature of consideration | Cash | ||
8 | Purchase consideration | US $500Mn (USD Five Hundred Million) | ||
9 | Shares acquired | 100% | ||
10 | Target Information | Founded in 2006, Appirio was an early partner of Salesforce.com, Workday and Google, and a pioneer in crowdsourcing. Appirio is a global services company that helps customers create next-generation Worker and Customer Experience using the latest cloud technologies. Appirio is headquartered in the U.S. with offices in Indianapolis, San Francisco, Dublin, London, Tokyo and Jaipur, India. Appirio is privately held and has a workforce of ~1,250. Last three years revenue: US $137M (2013), US $178M (2014) and US $196M (2015). |
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