EX-99.1 2 d48804dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

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Results for the Quarter ended June 30, 2020 under IFRS

IT Services Operating Margin3 for the quarter was at 19.0%

Earnings Per Share up by 5.7% YoY

Bangalore, India and East Brunswick, New Jersey, USA – July 14, 2020 – Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2020.

Highlights of the Results

Results for the Quarter ended June 30, 2020:

 

 

Gross Revenue was  149.1 billion ($2.0 billion1), an increase of 1.3% YoY

 

 

IT Services Segment Revenue was at $1,921.6 million1, a decrease of 5.7% YoY

 

 

Non-GAAP2 constant currency IT Services Segment Revenue decreased by 4.4% YoY

 

 

IT Services Operating Margin3 for the quarter was at 19.0%, an expansion of 0.6%YoY

 

 

Net Income for the quarter was  23.9 billion ($316.5 million1), an increase of 0.1% YoY

 

 

Earnings Per Share for the quarter was at  4.20 ($0.061), an increase of 5.7% YoY

 

 

Operating Cash Flows was at  41.8 billion ($553.6 million1), which is 174.9% of Net Income

Performance for the quarter ended June 30, 2020

Thierry Delaporte, CEO and Managing Director said, “I am deeply honored to lead Wipro, an extraordinary company and an exemplary corporate citizen with a deep technology heritage built on a strong foundation of values. I have great respect for the work done by the Azim Premji Foundation, its 67% economic ownership of Wipro adds greater meaning to what we do. Profitable growth will be the most important priority on my agenda. I am confident that we will be able to deliver long-term, sustainable growth in the interest of all our stakeholders.”

Jatin Dalal, Chief Financial Officer said, “We expanded the margins during the quarter, despite lower revenues, on the back of solid execution of several operational improvements and rupee depreciation. We also continued to sustain robust cash generation with Operating Cash Flows at 174.9% of Net income.”

IT Services

Wipro continued its momentum in winning large deals with our customers as described below:

 

 

Wipro has been selected by John Lewis Partnership, one of the UK’s leading retail groups, as a strategic partner to help drive its retail transformation agenda. As part of this, Wipro will deliver state-of-the-art technology infrastructure services, leveraging its capabilities in Cloud, Digital, Cyber Security, Wipro HOLMES our Artificial Intelligence (AI) and Automation Platform

 

1. 

For the convenience of the readers, the amounts in Indian Rupees in this release have been translated into United States Dollars at the certified foreign exchange rate of US$1 =  75.53, as published by the Federal Reserve Board of Governors on June 30, 2020. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2020 was US$1=  75.95

2. 

Constant currency revenue for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period

3. 

IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials

 

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Wipro has been awarded a strategic, multi-year infrastructure modernization and digital transformation services engagement by Germany-based energy company E.ON. Wipro will transform E.ON’s legacy data center operations to a hybrid cloud model by leveraging its strong energy value chain expertise in a prosumer driven world, Boundary Less Enterprise (BLE) framework and Wipro HOLMES. Wipro’s consumption-based hybrid cloud hosting strategy will ensure a superior and secure customer environment spanning Perimeter & Endpoint security, threat detection & response, and Privileged Access Management (PAM)

 

 

Wipro has won a managed services contract from a multinational European automobile manufacturer to modernize and automate its engineering operations, leveraging Digital Rig, the client’s differentiated digital solution. With its strong domain expertise, globally-integrated delivery model and Wipro HOLMES, Wipro will drive major transformations to enhance service quality and user experience

 

 

Wipro has won a strategic multi-year engagement with a leading global investment management firm to transform and manage its entire technology development services and infrastructure. The scope includes applications development and maintenance, quality engineering services, and infrastructure services comprising datacenter operations, networks, and service desk support. This contract adds to the operations engagement that the customer awarded Wipro last year. Wipro will leverage its strong digital expertise and hyper automation capabilities powered by Wipro HOLMES to transform the client’s application and infrastructure estate, driving additional synergies via an integrated technology-infrastructure-operations construct

Digital & Cloud Application Services Highlights

We continue to see increasing traction in digital oriented deals as illustrated below:

 

 

Wipro has secured a contract from a US-based food distribution company to deploy its CoTrack solution to meet the demands of the changing workplace due to the current pandemic. This wearable solution will enable the customer to maintain social distancing within the distribution center by sending real-time alerts in case of any violation. The solution will also enable contact tracing

 

 

Wipro has secured a strategic cloud contract from a food and beverage conglomerate to transform their operations and accelerate their digital journey, by improving agility, scalability and cost efficiencies. Wipro will strengthen advanced analytics capabilities to drive business value and offer analytical services to all entities within the organization

 

 

Wipro has won a digital engagement with a European health system to build and accelerate AI-powered applications and services, helping improve healthcare access and treatment for its patients

 

 

A US-based multinational conglomerate has selected Wipro to transform their Identity & Access Management services to meet the demands of the new normal. As part of the engagement, Wipro will enhance the customer’s current security environment and enable them to transition to the new solution

 

 

Wipro’s crowdsourcing platform Topcoder has won a data science challenge from the U.S. Bureau of Reclamation working with the NASA Tournament Lab. This challenge seeks to improve short-term streamflow forecasts via a year-long competition. Accurate stream flow forecasts enable efficient operation of water resource systems and may also be used as warning for floods. Participants will develop and implement their methods for locations across the western United States and attempt to outperform the current streamflow forecasts

Partner and Analyst Recognition

 

 

Wipro Limited has been recognized as the Application Innovation and Data Estate Modernization 2020 Microsoft Partner of the Year for our achievements in the Azure category

 

 

Wipro has been awarded the Storage Ecosystem Partner of the Year 2020 by Hewlett Packard Enterprise for storage solutions

 

 

Wipro was positioned as a Leader in IDC MarketScape EMEA Digital Transformation Service Providers for Oil and Gas Industry (Doc #EUR146159020, Apr 2020)

 

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Wipro was positioned as a Leader in IDC MarketScape: Worldwide Cloud Professional Services 2020 Vendor Assessment (Doc #US45439120, Apr 2020)

 

 

Wipro was recognized as a Leader in Everest Group’s Internet of Things (IoT) Services PEAK Matrix® Assessment 2020

 

 

Wipro was recognized as a Leader in Everest Group’s Open Banking IT Services PEAK Matrix® Assessment 2020

 

 

Wipro was positioned as a Leader in Everest Group’s IT Security Services PEAK Matrix® Assessment 2020

 

 

Wipro was recognized as a Leader in Everest Group’s Healthcare Payer Operations – Services PEAK Matrix® Assessment 2020

 

 

Wipro was featured in HFS TOP 10 Salesforce services 2020

 

 

Wipro was positioned as a Leader in multiple quadrants in 2020 ISG Provider Lens Microsoft Ecosystem Report for USA and Germany

 

 

Wipro was positioned as a Leader in Gartner Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services, Worldwide, Craig Lowery et al., 4 May 2020

Disclaimer: 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 Gartner’s 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.

State of IT Infrastructure 2020 Report

Wipro released its ‘State of IT Infrastructure 2020’ report which provides a multi-dimensional view of how the COVID-19 pandemic will impact IT infrastructure trends in the immediate future

IT Products

 

 

IT Products Segment Revenue for the quarter was  2.3 billion ($29.9 million1)

 

 

IT Products Segment Results for the quarter was a profit of  0.12 billion ($1.6 million1)

India business from State Run Enterprises (SRE)

 

 

India SRE Segment Revenue for the quarter was  2.1 billion ($28.0 million1)

 

 

India SRE Segment Results for the quarter was a loss of  0.10 billion ($1.3 million1)

Please refer to the table on page 9 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 9 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. Further, in the normal course of business, we may divest a portion of our business which may not be strategic. We refer to the growth rates in both reported and constant currency adjusting for such divestments in order to represent the comparable growth rates.

 

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

Results for the quarter ended June 30, 2020, 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 06:45 p.m. Indian Standard Time (09:15 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- https://links.ccwebcast.com/?EventId=WIP200714

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 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 180,000 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
Aparna Iyer    Abhishek Kumar Jain       Vipin Nair
Phone: +91-80-6142 7139    Phone: +91-9845791363       Phone: +91-80-6142 7139
iyer.aparna@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,

 

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unauthorized use of our intellectual property and general economic conditions affecting our business and industry. The conditions caused by the COVID-19 pandemic could decrease technology spending, adversely affect demand for our products, affect the rate of customer spending and could adversely affect our customers’ ability or willingness to purchase our offerings, delay prospective customers’ purchasing decisions, adversely impact our ability to provide on-site consulting services and our inability to deliver our customers or delay the provisioning of our offerings, all of which could adversely affect our future sales, operating results and overall financial performance. Our operations may also be negatively affected by a range of external factors related to the COVID-19 pandemic that are not within our control.

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)

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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

 

     As at March 31, 2020      As at June 30, 2020  
    

 

    

 

     Convenience translation
into US dollar in millions
Refer footnote 1 in page 1
 

ASSETS

        

Goodwill

     131,012        131,596        1,742  

Intangible assets

     16,362        15,501        205  

Property, plant and equipment

     81,120        81,843        1,084  

Right-of-Use assets

     16,748        16,018        212  

Financial assets

        

Investments

     9,302        8,875        118  

Trade receivables

     6,049        6,047        80  

Other financial assets

     5,881        6,354        84  

Investments accounted for using the equity method

     1,383        1,412        19  

Deferred tax assets

     6,005        3,073        41  

Non-current tax assets

     11,414        11,821        157  

Other non-current assets

     11,935        11,457        152  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     297,211        293,997        3,894  
  

 

 

    

 

 

    

 

 

 

Inventories

     1,865        1,644        22  

Financial assets

        

Derivative assets

     3,025        1,666        22  

Investments

     189,635        213,865        2,832  

Cash and cash equivalents

     144,499        159,443        2,111  

Trade receivables

     104,474        93,023        1,232  

Unbilled receivables

     25,209        24,659        326  

Other financial assets

     8,614        10,526        139  

Contract assets

     17,143        16,301        216  

Current tax assets

     2,882        2,400        32  

Other current assets

     22,505        23,584        312  
  

 

 

    

 

 

    

 

 

 

Total current assets

     519,851        547,111        7,244  
  

 

 

    

 

 

    

 

 

 
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     817,062        841,108        11,138  
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     11,427        11,429        151  

Share premium

     1,275        1,568        21  

Retained earnings

     476,103        494,659        6,549  

Share-based payment reserve

     1,550        1,512        20  

SEZ Re-investment reserve

     43,804        49,234        652  

Other components of equity

     23,299        28,352        375  
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     557,458        586,754        7,768  

Non-controlling interest

     1,875        1,062        14  
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY

     559,333        587,816        7,782  
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Financial liabilities

        

Long - term loans and borrowings

     4,840        4,747        63  

Derivative liabilities

     138        85        1  

Lease liabilities

     12,638        12,744        169  

Other financial liabilities

     151        192        3  

Deferred tax liabilities

     2,825        2,261        30  

Non-current tax liabilities

     13,205        13,060        173  

Other non-current liabilities

     7,537        8,293        110  

Provisions

     2        4        ^  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     41,336        41,386        549  
  

 

 

    

 

 

    

 

 

 

Financial liabilities

        

Loans, borrowings and bank overdrafts

     73,202        69,490        920  

Derivative liabilities

     7,231        2,740        36  

Trade payables and accrued expenses

     78,129        75,057        995  

Lease liabilities

     6,560        7,080        94  

Other financial liabilities

     899        885        12  

Contract liabilities

     18,775        18,279        242  

Current tax liabilities

     11,731        13,970        185  

Other current liabilities

     19,254        23,546        312  

Provisions

     612        859        11  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     216,393        211,906        2,807  
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     257,729        253,292        3,356  
  

 

 

    

 

 

    

 

 

 
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     817,062        841,108        11,138  
  

 

 

    

 

 

    

 

 

 

^ Value is less than 1

        

 

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WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

 

     Three months ended June 30,  
     2019      2020      2020  
    

 

    

 

     Convenience translation
into US dollar in millions
Refer footnote 1 in page 1
 

Revenues

     147,161        149,131        1,974  

Cost of revenues

     (104,273)        (103,700)        (1,373)  
  

 

 

    

 

 

    

 

 

 

Gross profit

     42,888        45,431        601  

Selling and marketing expenses

     (10,953)        (9,789)        (130)  

General and administrative expenses

     (8,119)        (10,006)        (132)  

Foreign exchange gains/(losses), net

     858        1,205        16  

Other operating income

     699        97        1  
  

 

 

    

 

 

    

 

 

 

Results from operating activities

     25,373        26,938        356  

Finance expenses

     (1,584)        (1,299)        (17)  

Finance and other income

     6,947        5,281        70  

Share of net profit /(loss) of associates accounted for using the equity method

     (16)        31        ^  
  

 

 

    

 

 

    

 

 

 

Profit before tax

     30,720        30,951        409  

Income tax expense

     (6,699)        (6,838)        (91)  
  

 

 

    

 

 

    

 

 

 

Profit for the period

     24,021        24,113        318  
  

 

 

    

 

 

    

 

 

 

Profit attributable to:

        

Equity holders of the Company

     23,874        23,902        315  

Non-controlling interest

     147        211        3  
  

 

 

    

 

 

    

 

 

 

Profit for the period

     24,021        24,113        318  
  

 

 

    

 

 

    

 

 

 

Earnings per equity share:

        

Attributable to equity holders of the Company

        

Basic

     3.97        4.20        0.06  

Diluted

     3.96        4.19        0.06  

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

        

Basic

     6,010,597,369        5,693,348,171        5,693,348,171  

Diluted

     6,025,352,442        5,703,168,248        5,703,168,248  

^ Value is less than 1

        
  

 

 

    

 

 

    

 

 

 

 

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Additional Information:

 

Particulars    Three months ended      Year ended  
   June 30,
2020
     March 31,
2020
     June 30,
2019
     March 31,
2020
 

 

   Audited      Audited      Audited      Audited  

Revenue

           

IT Services

           

BFSI

     44,828        46,690        45,395        184,457  

Health BU

     19,760        20,589        18,871        78,240  

CBU

     23,179        25,669        22,366        97,008  

ENU

     19,279        19,570        18,432        76,443  

TECH

     19,670        19,503        18,660        75,895  

MFG

     11,820        12,486        11,336        48,158  

COMM

     7,420        8,453        8,454        33,840  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total of IT Services

     145,956        152,960        143,514        594,041  

IT Products

     2,258        2,792        2,409        11,010  

ISRE

     2,117        2,341        2,143        8,400  

Reconciling Items

     5        10        (47)        (50)  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Revenue

     150,336        158,103        148,019        613,401  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other operating Income

           

IT Services

     97        395        699        1,144  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other Operating Income

     97        395        699        1,144  
  

 

 

    

 

 

    

 

 

    

 

 

 

Segment Result

           

IT Services

           

BFSI

     8,517        8,144        9,335        34,132  

Health BU

     2,728        3,049        2,929        12,027  

CBU

     4,419        4,546        3,506        16,729  

ENU

     3,569        3,766        2,196        12,176  

TECH

     4,167        3,906        3,526        14,312  

MFG

     2,228        2,336        2,092        9,252  

COMM

     891        1,330        1,518        5,336  

Unallocated

     1,206        (547)        720        2,577  

Other Operating Income

     97        395        699        1,144  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total of IT Services

     27,822        26,925        26,521        107,685  
  

 

 

    

 

 

    

 

 

    

 

 

 

IT Products

     124        116        (407)        (282)  

ISRE

     (100)        (481)        (636)        (1,822)  

Reconciling Items

     (908)        (171)        (105)        149  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     26,938        26,389        25,373        105,730  

Finance Expense

     (1,299)        (1,653)        (1,584)        (7,328)  

Finance and Other Income

     5,281        4,907        6,947        24,081  

Share of net profit/ (loss) of associates accounted for using the equity method

     31        13        (16)        29  
  

 

 

    

 

 

    

 

 

    

 

 

 

Profit before tax

     30,951        29,656        30,720        122,512  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

IT Services: 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), Health Business unit (Health BU), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). 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.

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.

India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by the Government of India and/ or any State Governments.

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

 

Three Months ended June 30, 2020       

IT Services Revenue as per IFRS

   $ 1921.6  

Effect of Foreign currency exchange movement

   $ 27.6  
  

 

 

 

Non-GAAP Constant Currency IT Services Revenue based on exchange rates of comparable period in previous year

   $ 1949.2  

 

9