EX-99.6 7 d550788dex996.htm EX-99.6 EX-99.6

Exhibit 99.6

Wipro Limited

Results for the Quarter ended June 30, 2018

Operating Metrics Pertaining to IT Services Segment

A. IT Services

 

        FY 18-19     FY 17-18     FY 16-17  
        Q1     FY     Q4     Q3     Q2     Q1     FY  

Revenue & OM%

  IT Services Revenues ($MN)     2,026.5       8,060.2       2,062.0       2,013.0       2,013.5       1,971.7       7,704.5  
  Sequential Growth     -1.7     4.6     2.4     0.0     2.1     0.9     4.9
  Sequential Growth in Constant Currency*     0.1     2.9     1.1     0.9     0.3     0.3     7.0
  Operating Margin %     17.2 %#      15.8 %^^      14.4 %^      14.8 **      17.3     16.8     18.0

Service Line Mix

 

 

Practices

             
  Business Process Services     12.1     12.2     12.1     12.6     12.1     12.0     13.0
  Cloud and Infrastructure Services     27.4     28.4     28.8     28.2     28.4     28.1     28.0
  Data, Analytics and AI     7.1     7.0     7.0     7.0     7.1     7.1     7.1
  Modern Application Services     46.1     45.4     44.8     45.3     45.5     45.8     44.7
  Product Engineering Services     7.3     7.0     7.3     6.9     6.9     7.0     7.2

SBU Mix

 

 

Strategic Business Units@

             
  Banking, Financial Services and Insurance     30.0     28.1     29.2     28.5     27.6     26.7     25.7
  Communications     5.6     6.4     5.8     6.4     6.5     6.8     7.3
  Consumer Business Unit     16.0     15.8     15.6     16.0     15.9     15.8     15.8
  Energy, Natural Resources and Utilities     12.5     12.9     12.5     12.4     13.5     13.4     13.1
  Health Business Unit     13.4     14.1     13.9     14.0     13.7     14.8     15.6
  Manufacturing     8.3     8.7     8.7     8.6     8.7     9.0     8.9
  Technology     14.2     14.0     14.3     14.1     14.1     13.5     13.6

Geography Mix

 

 

Geography

             
  Americas     54.9     53.4     52.7     53.1     53.6     54.5     54.7
  APAC and Other Emerging Markets     10.9     11.1     10.9     11.0     11.4     10.9     10.8
  Europe     25.6     25.6     27.0     25.9     25.1     24.2     24.4
  India & Middle East business     8.6     9.9     9.4     10.0     9.9     10.4     10.1
 

 

Guidance ($MN)

    2,015-2,065         2,033-2,073       2,014-2,054       1,962-2,001       1,915-1,955    

Guidance

  Guidance restated based on actual currency realized ($MN)     1,978-2,027         2,060-2,100       1,996-2,036       1,999-2,038       1,927-1,967    
  IT Services Revenues ($MN)     2,026.5       8,060.2       2,062.0       2,013.0       2,013.5       1,971.7       7,704.5  

Customer Relationships

 

 

Customer size distribution (TTM)

             
  > $100MN     8       8       8       9       9       9       9  
  > $75MN     19       20       20       17       16       18       18  
  > $50MN     40       39       39       41       39       36       34  
  > $20MN     91       95       95       90       90       90       91  
  > $10MN     173       171       171       167       170       163       163  
  > $5MN     278       277       277       272       270       262       268  
  > $3MN     368       369       369       364       370       357       354  
  > $1MN     624       631       631       635       627       624       602  

Customer Metrics

 

 

Revenue from Existing customers %

    99.5     98.6     97.4     98.2     99.2     99.6     98.0
  Number of new customers     75       223       58       79       41       45       256  
  Total Number of active customers     1,254       1,248       1,248       1,281       1,274       1,244       1,323  
  Customer Concentration              
  Top customer     3.7     3.1     3.5     3.1     3.1     2.9     2.7
  Top 5     11.7     11.1     11.9     11.3     11.0     10.3     10.0
  Top 10     18.3     17.8     18.4     17.8     18.0     17.5     17.1

 

* 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
** Excluding the one time impact of insolvency of a customer, post balance sheet date, normalized operating margin for the Quarter ended December 31, 2017 was 17.2%
^ Excluding the one time impact of insolvency of a customer & impairment loss booked for one of our acquisitions, normalized operating margin for the Quarter ended March 31, 2018 was 16.0%
^^ Excluding the one time impact of insolvency of two of our customers & impairment loss booked for one of our acquisitions, normalized operating margin for the Year ended March 31, 2018 was 16.8%
# IT Services margin for the Quarter ended June 30, 2018 includes gain of 2,529 million from the sale of our hosted data center business during the quarter
@ With effect from April 1, 2018, we have realigned our MNT business unit into 2 separate business units - (i) Manufacturing and (ii) Technology

 

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    FY 18-19     FY 17-18     FY 16-17  
        Q1     FY     Q4     Q3     Q2     Q1     FY  

Currency Mix

  % of Revenue              
  USD     60     58     58     58     58     59     61
  GBP     11     10     11     10     10     10     10
  EUR     8     9     9     9     9     9     9
  INR     7     8     8     8     8     8     7
  AUD     5     5     5     5     5     4     4
  CAD     2     2     2     2     3     3     2
  Others     7     8     7     8     7     7     7
  Closing Employee Count     164,659       163,827       163,827       162,553       163,759       166,790       165,481  
 

 

Utilization

(IT Services excl. Infocrossing, BPS, Designit,

Cellent, HPS, Appirio, Cooper, Infoserver and I&ME)

             
  Gross Utilization     74.5     72.2     73.1     71.0     72.9     72.0     71.5
  Net Utilization (Excluding Support)     83.9     81.1     82.4     80.0     81.8     80.3     80.2
  Net Utilization (Excluding Trainees)     85.2     82.5     83.4     81.9     82.5     82.1     82.3
  Attrition              
  (IT Services excl. BPS)              
  Voluntary TTM     17.0     16.6     16.6     15.9     15.7     15.9     16.3
  Voluntary Quarterly Annualized     17.7     16.6     17.5     16.2     16.7     16.1     16.3
  BPS %- Quarterly     10.8     12.7     11.3     12.8     13.5     12.8     11.5
  BPS % - Post Training Quarterly     9.5     11.2     9.8     11.1     11.9     11.4     9.3
  Sales & Support Staff - IT Services     15,076       14,936       15,215       14,881       14,880       14,769       14,466  

B. IT Services (Excluding Infocrossing, BPS, Designit, cellent, HPS, Appirio, Cooper, Infoserver and I&ME)

 

Service delivery

   Revenue from FPP      58.9      58.1      58.7      57.7      57.7      58.2      57.1
   Onsite Revenue - % of Services      52.9      53.2      52.7      53.5      53.2      53.6      53.7
   Off shore Revenue - % of Services      47.1      46.8      47.3      46.5      46.8      46.4      46.3

 

C. Growth Metrics for the Quarter ended June 30, 2018  
     Reported
Currency

QoQ %
    Reported
Currency

YoY %
    Constant
Currency
QoQ %
    Constant
Currency
YoY %
 

IT Services

     -1.7     2.8     0.1     2.4

Strategic Business Units@

        

Banking, Financial Services and Insurance

     1.1     14.9     3.0     14.4

Communications

     -5.4     -14.8     -1.3     -13.6

Consumer Business Unit

     0.7     4.5     2.6     4.8

Energy, Natural Resources and Utilities

     -1.5     -3.7     1.7     -4.3

Health Business Unit

     -5.4     -7.2     -4.7     -7.7

Manufacturing

     -7.1     -5.0     -5.4     -6.0

Technology

     -2.0     8.1     -1.3     7.2

 

Geography

        

Americas

     2.4     3.6     2.9     3.7

APAC and Other Emerging Markets

     -2.4     2.8     1.1     2.4

Europe

     -6.6     8.7     -3.0     5.8

India & Middle East business

     -10.2     -15.2     -7.5     -12.2

 

Practices

        
Business Process Services      -1.5     3.5     -0.6     3.2
Cloud and Infrastructure Services      -6.3     0.5     -4.6     0.5
Data, Analytics and AI      -0.2     2.3     1.5     1.8
Modern Application Services      1.0     3.4     3.3     2.7
Product Engineering Services      -2.1     7.3     -1.1     7.0

 

D. Annexure to Datasheet

 

Segment-wise breakup of

Cost of Revenues, S&M and G&A

   Q1 FY 18-19 (INR MN)  

Particulars

   IT
Services
     IT
Products
     Reconciling
Items
     Total  

Cost of revenues

     96,415        3,862        73        100,350  

Selling and marketing expenses

     10,838        10        (35      10,813  

General and administrative expenses

     8,310        400        (102      8,608  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     115,563        4,272        (64      119,771  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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