EX-99.1 2 d500020dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE    LOGO

Results for the quarter ended December 31, 2017 under IFRS

IT Services Revenue in line with Guidance, Digital surpasses 25% of our Revenue

Bangalore, India and East Brunswick, New Jersey, USA – January 19, 2018 — Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for its quarter ended December 31, 2017.

Highlights of the Results

 

    Gross Revenue of Wipro Limited was  136.7 billion ($2.1 billion1).
    IT Services Segment Revenue in Non-GAAP constant currency increased by 0.9% sequentially, in line with our Guidance.
    IT Services Segment Revenue in dollar terms was $2,013.0 million, remaining flat sequentially and increasing by 5.8% YoY.
    IT Services Margin for the quarter was 14.8%, impacted by a provision of  3,175 million ($49.7 million1) made with respect to insolvency of a customer post the balance sheet date. Adjusted for this event, IT Services Margin for the quarter was 17.2%.
    Net Income3 for the quarter was  19.4 billion ($303 million1), a decrease of 8.2% YoY. Adjusted for the customer insolvency event, Net Income3 for the quarter increased by 4.0% YoY.
    Wipro declared an interim dividend of  1 ($0.021) per share/ADS.

Performance for the quarter ended December 31, 2017

Abidali Z. Neemuchwala, CEO and Member of the Board said—“We continued to improve our growth trajectory driven by strong momentum in BFSI and uptick in Healthcare. This is also reflected in our outlook for the next quarter. Our leadership in Digital continues to strengthen with over 25% of our revenues now coming from Digital.”

Jatin Dalal, Chief Financial Officer said—“We have made strong progress in our client mining with number of clients contributing revenues over $50 million increasing from 33 to 41 in the last 1 year. In the first 9 months of the current fiscal year, we generated robust Operating Cash Flows of  77 billion, 14.2% more than the same period last year. We also completed the Share Buyback in December and saw strong participation from our investors.”

Outlook for the Quarter ending March 31, 2018

We expect Revenues from our IT Services business to be in the range of $2,033 million to $2,073 million*.

 

* Outlook is based on the following exchange rates: GBP/USD at 1.33, Euro/USD at 1.18, AUD/USD at 0.76, USD/INR at 64.49 and USD/CAD at 1.28.
1. For the convenience of the reader, the amounts in Indian Rupees in this release have been translated into United States Dollars at the noon buying rate in New York City on December 31, 2017, for cable transfers in Indian Rupees, as certified by the Federal Reserve Board of New York, which was US $1=  63.83. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2017 was US$1=  65.74
2. Segment Profit refers to Segment Results Total.
3. Net Income refers to ‘Profit for the period attributable to equity holders of the Company’


   LOGO

Share Buyback Update

In the quarter ended December 31, 2017, the Company has concluded the buyback of 343.75 million equity shares as approved by the Board of Directors on July 20, 2017. This has resulted in a total cash outflow of  110,000 million.

IT Services

Wipro continued its momentum in winning large deals globally as described below:

A leading global financial services company has chosen Wipro as a strategic partner to support its compliance and operational risk applications. The engagement will help the client achieve increased productivity and enhanced end-customer engagement.

A leading North American specialty retailer has expanded a business process services contract with Wipro. As part of the engagement, Wipro will help the retailer improve its Net Promoter Score (NPS) by driving a superior customer care experience for its end-customers.

A leading global manufacturer of cleaning and hygiene products has awarded an end-to-end IT infrastructure contract to Wipro. The intelligent analytics capabilities of Wipro HOLMESTM will be used to improve the operational efficiency and end user experience.

A North American telecom major has awarded a quality assurance contract to Wipro, wherein Wipro will manage the testing of Business Support Systems applications for the client.

Wipro has also won a multi-year engagement with a leading airport in North America for developing a resilient, agile and scalable IT system. This program will enhance core business-critical airport systems such as passenger processing, baggage processing and the Airport Operational Database (AODB) and will lay the foundation for next-gen digital transformation initiatives.

Oriental Bank of Commerce, a leading public-sector bank in India has awarded Wipro a contract to implement an Enterprise-wide Data Warehousing (EDW) solution. The deployment will help the bank respond nimbly to regulatory reporting requirements. It will also enable the bank to develop a single view of its customer base and enhance its focus on customer centricity.

Wipro will enable analytics, digital and Smart Campus initiatives for a leading university in the APAC region.


   LOGO

Digital highlights

We saw increasing traction in digital oriented deals as illustrated below:

A global automotive company has selected Wipro to redesign its retail strategy, ranging from physical spaces to digital experiences.

A major international payments provider has awarded Wipro Digital a pilot project focused on payments and wearables. The project will leverage Designit’s expertise in technology, product and service design.

Wipro has won a workspace services deal encompassing service desk operations and end-user services with a leading Brazilian retail chain. The engagement will leverage the Wipro HOLMESTM chatbot to enhance the end-user experience at the retail chain’s stores.

A public transport authority in the Middle East has awarded a project to Wipro to design and develop a big data information platform. Wipro will develop a state-of-the-art data lake to process and analyze data across the customer’s landscape to help them derive actionable insights.

Wipro also won a number of deals in the Cloud applications space leveraging Appirio Cloud Services:

 

    A Fortune 500 medical devices organization has selected Wipro for a multi-year global front-office transformation project.

 

    A global provider of banking and financial services has awarded Wipro a contract to upgrade its user experience and simplify their sales and service process.

 

    An American chain of luxury departmental stores has selected Wipro to reimagine its employee experience and modernize their HR processes.

 

    Wipro has won a customer experience transformation contract from an international charitable organization.

Delivery Excellence

Magne Solberg, CIO, Co-op said—“We selected Wipro as a strategic partner because of their retail domain expertise, investment in digital technologies, and strong SAP and infrastructure capabilities. We are planning to leverage Wipro’s expertise in our own digital journey. We have experienced Wipro’s investment in Artificial Intelligence, cognitive and digital solutions such as on-shelf availability, AR promotions and VR home shopper. This engagement has benefited our supply chain, and logistics operations, back office and in-store availability with increased efficiency, reach and availability. Wipro also helped us in successfully integrating one of our recent acquisitions ICA by migrating ICA’s SAP platform to Azure cloud. We strongly recommend Wipro as we strengthen our position in the Norwegian retail market. I think Wipro’s new branding and logo are signs that Wipro is truly looking to transform the way they reset the future digital journeys for their customers.”


   LOGO

Analyst Accolades and Awards

Wipro was positioned as a Leader in Everest Group FAO PEAK Matrix™ 2017

Wipro was positioned as a Leader in Everest Group PEAK—Service Provider Landscape with PEAK Matrix™ Assessment for 2017 for Risk & Regulatory Compliance Application Services in BFS

Wipro was positioned as a Leader in Everest Group Healthcare Payer BPO PEAK Matrix™ 2017

Wipro has been recognized as a market leader in Digital Workplace Services by Information Services Group (ISG), a leading global technology research and advisory firm

Wipro positioned as a Leader by Everest Group in Cloud Enablement Services – Market Trends and Services PEAK Matrix™ 2017

Wipro was positioned as a Leader by ISG in Provider Lens™ Public Cloud Infrastructure Consulting & Implementation Services, 2017

Wipro was recognized as a Leader by The Forrester in Wave™—Next-Generation Infrastructure Outsourcing, Q4 2017

Wipro has been recognized as Platform Partner of the Year 2017 by BMC Software and won the highest number of accreditations for Security Operations at the BMC Outsourcers Tech Summit (BOTS)

Wipro was ranked #2 in the list of ‘Top 20 Service Outsourcing MNCs in China 2017’ in a study by Devott, a leader in research and advisory of China’s outsourcing and technology markets

Wipro was recognized as one of India’s most innovative companies by Confederation of Indian Industry (CII) at the Industrial Innovation Awards 2017, for the value addition that Wipro brings to its clients and the ecosystem through its Data Discovery Platform, Smart i-Connect Platform and Open Innovation process

IT Products

 

    Revenue for the quarter ended December 31, 2017 was  4.5 billion ($70 million1).
    IT Products Margin for the quarter was 4.3%, as compared to 2.9% for the quarter ended September 30, 2017.

Please refer the table on page 8 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.


   LOGO

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 8 provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial measure that is calculated by translating IT Services Revenue from the current reporting period into U.S. dollars based on the currency conversion rate in effect for the prior reporting period. We refer to growth rates in constant currency so that business results may be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance.

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

Results for the quarter ended December 31, 2017, 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/wipro180119.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

All product names, logos, and brands are property of their respective owners.


   LOGO

About Wipro Limited

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology, consulting and business process services company. We harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies to help our clients adapt to the digital world and make them successful. A company recognized globally for its comprehensive portfolio of services, strong commitment to sustainability and good corporate citizenship, we have over 160,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

 

Contact for Investor Relations    Contact for Media & Press
Vaibhav Saha    Abhishek Kumar Jain    Vipin Nair
Phone: +91-80-4672 6143    Phone: +1 978 826 4700    Phone: +91-80-3991 6450
vaibhav.saha@wipro.com    abhishekkumar.jain@wipro.com    vipin.nair1@wipro.com

Forward-looking statements

The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, complete proposed corporate actions, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

# # #    (Tables to follow)


Wipro limited and subsidiaries

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

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

 

     As of March 31,      As of December 31,  
     2017      2017      2017  
    

 

    

 

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

ASSETS

        

Goodwill

     125,796        126,974        1,989  

Intangible assets

     15,922        19,349        303  

Property, plant and equipment

     69,794        71,917        1,127  

Derivative assets

     106        389        6  

Investments

     7,103        10,396        163  

Investment in equity accounted investee

     —          620        10  

Trade receivables

     3,998        4,179        65  

Non-current tax assets

     12,008        15,152        237  

Deferred tax assets

     3,098        3,521        55  

Other non-current assets

     16,793        12,450        195  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     254,618        264,947        4,150  
  

 

 

    

 

 

    

 

 

 

Inventories

     3,915        2,732        43  

Trade receivables

     94,846        100,000        1,567  

Other current assets

     30,751        32,622        511  

Unbilled revenues

     45,095        40,434        633  

Investments

     292,030        237,283        3,718  

Current tax assets

     9,804        7,931        124  

Derivative assets

     9,747        3,478        54  

Cash and cash equivalents

     52,710        52,065        816  
  

 

 

    

 

 

    

 

 

 

Total current assets

     538,898        476,545        7,466  
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     793,516        741,492        11,616  
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     4,861        9,047        142  

Share premium

     469        690        11  

Retained earnings

     490,930        440,387        6,899  

Share based payment reserve

     3,555        1,688        26  

Other components of equity

     20,489        18,652        292  
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     520,304        470,464        7,370  

Non-controlling interest

     2,391        2,381        37  
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY

     522,695        472,845        7,407  
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Long—term loans and borrowings

     19,611        29,767        466  

Deferred tax liabilities

     6,614        5,092        80  

Derivative liabilities

     2        —          —    

Non-current tax liabilities

     9,547        8,221        129  

Other non-current liabilities

     5,500        4,525        71  

Provisions

     4        2        —    
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     41,278        47,607        746  
  

 

 

    

 

 

    

 

 

 

Loans, borrowings and bank overdrafts

     122,801        102,163        1,601  

Trade payables and accrued expenses

     65,486        71,303        1,116  

Unearned revenues

     16,150        17,860        280  

Current tax liabilities

     8,101        11,342        178  

Derivative liabilities

     2,708        2,820        44  

Other current liabilities

     13,027        14,750        231  

Provisions

     1,270        802        13  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     229,543        221,040        3,463  
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     270,821        268,647        4,209  
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     793,516        741,492        11,616  
  

 

 

    

 

 

    

 

 

 


Wipro limited and subsidiaries

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

 

     Three months ended December 31,     Nine months ended December 31,  
     2016     2017     2017     2016     2017     2017  
    

 

   

 

    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

     136,878       136,690       2,141       410,527       407,185       6,379  

Cost of revenues

     (96,576     (95,976     (1,504     (290,773     (287,781     (4,509

Gross profit

     40,302       40,714       637       119,754       119,404       1,870  

Selling and marketing expenses

     (9,226     (11,073     (173     (28,981     (31,086     (487

General and administrative expenses

     (8,610     (9,991     (157     (24,754     (24,340     (381

Foreign exchange gains/(losses), net

     767       125       2       3,032       931       15  

Results from operating activities

     23,233       19,775       309       69,051       64,909       1,017  

Finance expenses

     (1,366     (1,205     (19     (4,130     (4,065     (64

Finance and other income

     5,719       6,134       96       16,024       18,995       298  

Share of profits/(loss) of equity accounted investee

     —         10       —         —         14       —    

Profit before tax

     27,586       24,714       386       80,945       79,853       1,251  

Income tax expense

     (6,440     (5,355     (84     (18,471     (17,775     (278
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     21,146       19,359       302       62,474       62,078       973  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

            

Equity holders of the Company

     21,094       19,371       302       62,284       62,053       973  

Non-controlling interest

     52       (12     —         190       25       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     21,146       19,359       302       62,474       62,078       973  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

            

Attributable to equity share holders of the Company

            

Basic

     4.36       4.03       0.06       12.81       12.85       0.20  

Diluted

     4.35       4.03       0.06       12.77       12.83       0.20  

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

            

Basic

     4,834,941,252       4,802,285,697       4,802,285,697       4,863,935,370       4,830,841,298       4,830,841,298  

Diluted

     4,847,480,288       4,809,300,296       4,809,300,296       4,877,482,820       4,838,385,830       4,838,385,830  

Additional Information

            

Segment Revenue

            

IT Services Business Units

            

BFSI

     33,843       37,766       592       101,056       109,049       1,708  

HLS

     20,972       18,463       289       61,786       55,602       871  

CBU

     20,780       21,209       332       62,213       62,733       983  

ENU

     17,131       16,426       257       51,368       51,659       809  

MNT

     29,517       30,050       471       88,518       89,402       1,401  

COMM

     9,718       8,432       132       29,478       25,846       405  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT SERVICES TOTAL

     131,961       132,346       2,073       394,419       394,291       6,179  

IT PRODUCTS

     5,713       4,498       70       19,309       13,829       217  

RECONCILING ITEMS

     (29     (29     —         (169     (4     (0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     137,645       136,815       2,143       413,559       408,116       6,395  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

            

IT Services Business Units

            

BFSI

     6,413       6,832       107       19,786       18,328       287  

HLS

     3,400       2,364       37       9,490       7,796       122  

CBU

     3,415       3,869       61       10,774       10,047       157  

ENU

     3,856       (1,312     (21     10,324       5,774       90  

MNT

     5,355       5,692       89       17,484       16,267       255  

COMM

     1,604       1,315       21       4,700       3,911       61  

OTHERS

     —         —         —         —        

UNALLOCATED

     112       830       13       (1,762     2,167       34  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL IT SERVICES

     24,155       19,590       307       70,796       64,290       1,007  

IT PRODUCTS

     (586     195       3       (1,252     314       5  

RECONCILING ITEMS

     (336     (10     —         (493     305       5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL

     23,233       19,775       310       69,051       64,909       1,017  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

FINANCE EXPENSE

     (1,366     (1,205     (19     (4,130     (4,065     (63.68

FINANCE AND OTHER INCOME

     5,719       6,134       96       16,024       18,995       298  

SHARE OF PROFIT/(LOSS) OF EQUITY ACCOUNTED INVESTEE

       10       —         —         14       0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT BEFORE TAX

     27,586       24,714       386       80,945       79,853       1,251  

INCOME TAX EXPENSE

     (6,440     (5,355     (84     (18,471     (17,775     (278
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PROFIT FOR THE PERIOD

     21,146       19,359       302       62,474       62,078       973  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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. The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Lifesciences (HLS), Consumer Business Unit (CBU), Energy, Natural Resources and Utilities (ENU), Manufacturing & Technology (MNT), Communications (COMM). IT Services segment also includes Others which comprises dividend income 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, software products and other related deliverables.

 

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

 
Three Months ended December 31, 2017  

IT Services Revenue as per IFRS

   $ 2,013.0      IT Services Revenue as per IFRS    $ 2,013.0  

Effect of Foreign currency exchange movement

   $ 18.2      Effect of Foreign currency exchange movement    $ (53.1
  

 

 

       

 

 

 

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

   $ 2,031.2      Non-GAAP Constant Currency IT Services Revenue based on previous year exchange rates    $ 1,959.9  

Reconciliation of Adjusted Segment Result and Net Income ( MN)

 
Three Months ended December 31, 2017  

IT Services Segment Results

     19,590      Profit attributable to Equity Shareholders (Net Income)      19,371  

Effect of impact of customer insolvency

     3,175      Effect of post-tax impact of customer insolvency      2,568  
  

 

 

       

 

 

 

Adjusted IT Services Segment Results

     22,765      Adjusted Profit attributable to Equity Shareholders (Net Income)      21,939