EX-99.1 2 d296279dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

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Results for the Quarter ended December 31, 2021 under IFRS

IT Services delivers strong revenue growth for the quarter at 27.5% YoY,

IT Services Segment Margins at 17.6%

Bangalore, India and New Jersey, USA – January 12, 2022 - Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended December 31, 2021.

Highlights of the Results

Results for the Quarter ended December 31, 2021:

 

   

Gross Revenue was 203.1 billion ($2.7 billion1), an increase of 3.3% QoQ and 29.6% YoY

 

   

IT Services Segment Revenue was at $2,639.7 million, an increase of 2.3% QoQ and 27.5% YoY

 

   

Non-GAAP2 constant currency IT Services Segment Revenue increased by 3.0% QoQ and 28.5% YoY

 

   

IT Services Operating Margin3 for the quarter was at 17.6%, a decrease of 19 bps QoQ

 

   

Net Income for the quarter was 29.7 billion ($399.1 million1), increase of 1.3% QoQ

 

   

Earnings Per Share for the quarter was at 5.43 ($0.071), an increase of 4.2% YoY

 

   

Operating Cash Flow was at 30.1 billion ($404.2 million1), which is 101.3% of Net Income

 

   

Our closing strength of employees for IT Services was at 231,671, an increase of 41,363 employees on a net basis YoY. We added 10,306 employees during the quarter

 

   

Wipro declared an interim dividend of 1 ($0.0131) per equity share/ADS

Performance for the quarter ended December 31, 2021

Thierry Delaporte, CEO and Managing Director said, “Wipro has delivered a fifth consecutive quarter of strong performance, both on revenues, and margins. Order bookings have been strong too, and we have added seven new customers in the more than $100 Mn revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly.”

Jatin Dalal, Chief Financial Officer said, “We delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. We also improved our working capital, by reducing our Days Sales Outstanding. This has resulted in strong operating cash flow conversion, of 101.3% of net income. Additionally, we have declared an interim dividend of 1 per equity share.”

Outlook for the quarter ending March 31, 2022

We expect Revenue from our IT Services business to be in the range of $2,692 million to $2,745 million*. This translates to a sequential growth of 2.0% to 4.0%.

 

*

Outlook is based on the following exchange rates: GBP/USD at 1.34, Euro/USD at 1.13, AUD/USD at 0.73, USD/INR at 75.73 and CAD/USD at 0.79

 

  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 =  74.39, as published by the Federal Reserve Board of Governors on December 31, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended December 31, 2021 was US$1=  76.12

 

  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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IT Services

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

 

   

A US-based healthcare company has awarded Wipro a business process and platform services contract spanning claims processing and setting up a customer service center using Wipro’s proprietary healthcare platform. Wipro will enable the client to expand its product offerings and go-to-market strategies and grow in this business segment.

 

   

A leading US-based student-aid organization has awarded Wipro a multi-million dollar engagement to manage and streamline their mainframe operations to support their mission critical platform and help enhance end-user experience.

 

   

Wipro has won a multi-million dollar engagement with a US-based industrial manufacturing company to drive workplace transformation that delivers best-in-class end-user experience with an effective approach for mergers and acquisitions integrations.

 

   

Wipro has won an engagement with a leading US-based retail brokerage for a large integration program that includes modernizing and scaling applications across its multiple lines of business.

 

   

A technology-driven travel marketplace has selected Wipro as its strategic partner to modernize its core travel platform and help set up a capability hub in Mexico. The modernized platform will significantly enhance customer experience and help generate new revenue streams for the customer.

Digital Services Highlights

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

 

   

A large, Brazil-based water and waste management company has awarded Wipro a strategic engagement to transform their internal processes, improve operational efficiency, and enhance competitiveness leveraging Wipro FullStride Cloud Services.

 

   

A leading US-based Cloud Security and Identity Governance solutions provider has selected Wipro to develop demanding functionalities and enhancements to support their core Product Development function. Wipro will help the customer meet growing demands, enable a quicker time to market and scale their software business globally.

 

   

A leading US-based financial advice firm has selected Wipro and Capco as strategic partners to deliver multiple digital transformation programs. Together with Capco, Wipro will lead an innovation program to facilitate greater adoption of new technologies to accelerate the company’s digital transformation journey.

 

   

Wipro has won an engagement with a US-based multi-state healthcare organization to deliver modernized member services. Wipro will leverage a new cloud-based, globalized contact center service delivery model to digitally transform and optimize stakeholder experience and ensure cost savings, quality, compliance and growth for the customer.

 

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Analyst Recognition

 

   

Wipro has been recognized as a Leader for the second consecutive time in the 2021 Gartner® Magic Quadrant for Managed Network Services (Ted Corbett et al., 10 Nov 2021)

 

   

Wipro positioned as a Leader in The Forrester Wave: Data Management Service Providers, Q4 2021

 

   

Wipro was featured in the Top 3 players in HFS Top 10: Life Sciences Service Providers 2021

 

   

Wipro was featured in the Top 4 players in HFS Top 10: Energy Services 2021

 

   

Wipro was rated as a Leader in Avasant High-Tech Industry Digital Services 2021–2022 RadarView

 

   

Wipro was positioned as a Leader in IDC MarketScape: Worldwide Salesforce Implementation Services 2021 Vendor Assessment (Doc # US47073921, Nov 2021)

 

   

Wipro was rated as a Leader and Star Performer in Everest Group’s Enterprise Quality Assurance (QA) Services PEAK Matrix® Assessment 2022

 

   

Wipro was recognized as a Leader in Everest Group’s Cloud Services PEAK Matrix® Assessment 2022 – Europe, North America

 

   

Wipro was recognized as a Leader in Everest Group’s Advanced Analytics and Insights (AA&I) Services PEAK Matrix® Assessment 2022

 

   

Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane & Navisco Germany IT Outsourcing Study 2021

 

   

Wipro ranks among the Top Service Providers in Customer Satisfaction and Innovation categories in Whitelane French IT Outsourcing Study 2021

 

   

Wipro was recognized as a Leader in Everest Group’s Intelligent Automation in Healthcare – Solutions PEAK Matrix® Assessment 2022

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.

IT Products

 

   

IT Products Segment Revenue for the quarter was 1.8 billion ($23.8 million1)

 

   

IT Products Segment Results for the quarter was a profit of 0.1 billion ($1.3 million1)

India business from State Run Enterprises (ISRE)

 

   

India SRE Segment Revenue for the quarter was 1.6 billion ($21.8 million1)

 

   

India SRE Segment Results for the quarter was a profit of 0.1 billion ($1.8 million1)

 

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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.

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, 2021, 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 (08:45 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- https://links.ccwebcast.com/?EventId=WIP20220112

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 220,000 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: +91-80-6142 6143    Phone: +91-80-6142 6450
iyer.aparna@wipro.com    abhishekkumar.jain@wipro.com    vipin.nair1@wipro.com

 

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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)

 

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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, 2021      As at December 31, 2021  
                   Convenience translation into
US dollar in millions

Refer footnote in page 1
 

ASSETS

        

Goodwill

     139,127      242,945      3,266

Intangible assets

     13,085      44,320      596

Property, plant and equipment

     85,192      90,248      1,213

Right-of-Use assets

     16,420      18,445      248

Financial assets

        

Derivative assets

     16      35      ^  

Investments

     10,576      17,543      236

Trade receivables

     4,358      1,301      17

Other financial assets

     6,088      6,052      81

Investments accounted for using the equity method

     1,464      775      10

Deferred tax assets

     1,664      2,357      32

Non-current tax assets

     14,323      10,222      137

Other non-current assets

     15,935      12,377      166
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     308,248      446,620      6,002
  

 

 

    

 

 

    

 

 

 

Inventories

     1,064      1,025      14

Financial assets

        

Derivative assets

     4,064      5,277      71

Investments

     175,707      235,740      3,169

Cash and cash equivalents

     169,793      107,458      1,445

Trade receivables

     94,298      122,365      1,645

Unbilled receivables

     27,124      38,908      523

Other financial assets

     7,245      9,608      129

Contract assets

     16,507      16,680      224

Current tax assets

     2,461      4,185      56

Other current assets

     24,923      29,504      397
  

 

 

    

 

 

    

 

 

 

Total current assets

     523,186      570,750      7,673
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     831,434      1,017,370      13,675
  

 

 

    

 

 

    

 

 

 

EQUITY

        

Share capital

     10,958      10,962      147

Share premium

     714      1,304      18

Retained earnings

     466,692      555,789      7,471

Share-based payment reserve

     3,071      4,094      55

SEZ Re-investment reserve

     41,154      44,167      594

Other components of equity

     30,506      37,609      506
  

 

 

    

 

 

    

 

 

 

Equity attributable to the equity holders of the Company

     553,095      653,925      8,791

Non-controlling interests

     1,498      446      6
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY

     554,593      654,371      8,797
  

 

 

    

 

 

    

 

 

 

LIABILITIES

        

Financial liabilities

        

Loans and borrowings

     7,458      55,417      745

Derivative liabilities

     —        1      ^  

Lease liabilities

     13,513      15,056      202

Other financial liabilities

     2,291      3,676      49

Deferred tax liabilities

     4,633      14,989      201

Non-current tax liabilities

     11,069      14,520      195

Other non-current liabilities

     7,835      8,238      111

Provisions

     2      6      ^  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     46,801      111,903      1,503
  

 

 

    

 

 

    

 

 

 

Financial liabilities

        

Loans, borrowings and bank overdrafts

     75,874      78,501      1,055

Derivative liabilities

     1,070      340      5

Trade payables and accrued expenses

     78,870      87,506      1,175

Lease liabilities

     7,669      8,647      116

Other financial liabilities

     1,470      3,906      53

Contract liabilities

     22,535      28,161      379

Current tax liabilities

     17,324      18,992      255

Other current liabilities

     24,552      24,238      326

Provisions

     676      805      11
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     230,040      251,096      3,375
  

 

 

    

 

 

    

 

 

 

TOTAL LIABILITIES

     276,841      362,999      4,878
  

 

 

    

 

 

    

 

 

 

TOTAL EQUITY AND LIABILITIES

     831,434      1,017,370      13,675
  

 

 

    

 

 

    

 

 

 

 

^  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 December 31,     Nine months ended December 31,  
     2020     2021     2021     2020     2021     2021  
                 Convenience
translation into
US dollar in
millions

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

Refer footnote in
page 1
 

Revenues

     156,700     203,136     2,731     456,976     582,334     7,828

Cost of revenues

     (104,313     (142,778     (1,919     (313,400     (407,907     (5,483
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     52,387     60,358     812     143,576     174,427     2,345

Selling and marketing expenses

     (11,326     (13,988     (189     (30,721     (40,857     (549

General and administrative expenses

     (7,814     (12,036     (162     (25,997     (33,854     (455

Foreign exchange gains/(losses), net

     566     1,187     16     2,109     3,280     44

Other operating income/(loss), net

     —       14     ^       (81     2,179     29
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Results from operating activities

     33,813     35,535     477     88,886     105,175     1,414

Finance expenses

     (1,400     (1,403     (19     (3,966     (3,608     (49

Finance and other income

     5,975     3,578     48     16,465     12,311     165

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

     101     76     1     126     73     1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

     38,489     37,786     507     101,511     113,951     1,531

Income tax expense

     (8,524     (8,063     (108     (22,590     (22,547     (303
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     29,965     29,723     399     78,921     91,404     1,228
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit attributable to:

            

Equity holders of the Company

     29,667     29,690     399     78,225     91,318     1,227

Non-controlling interests

     298     33     ^       696     86     1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

     29,965     29,723     399     78,921     91,404     1,228
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per equity share:

            

Attributable to equity holders of the Company

            

Basic

     5.21     5.43     0.07     13.74     16.71     0.22

Diluted

     5.17     5.42     0.07     13.46     16.67     0.22

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

            

Basic

     5,696,798,493     5,467,954,878     5,467,954,878     5,694,731,405     5,465,359,077     5,465,359,077

Diluted

     5,741,070,466     5,481,204,821     5,481,204,821     5,812,779,105     5,478,766,612     5,478,766,612
            

 

^

Value is less than 1

 

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Additional Information:

 

Particulars

   Three months ended     Nine months ended     Year ended  
   December 31,
2021
    September 30,
2021
    December 31,
2020
    December 31,
2021
    December 31,
2020
    March 31,
2021
 
   Audited     Audited     Audited     Audited     Audited     Audited  

Revenue

            

IT Services

            

Americas 1

     56,644     53,205     45,015     159,532     131,581     178,091

Americas 2

     61,076     59,260     44,702     175,441     133,346     179,821

Europe

     59,620     58,619     42,880     172,700     120,334     165,441

APMEA

     23,596     22,715     20,717     67,543     61,637     82,462
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

     200,936     193,799     153,314     575,216     446,898     605,815

IT Products

     1,767     1,894     1,563     4,972     5,568     7,685

ISRE

     1,623     1,867     2,388     5,427     6,610     8,912

Reconciling Items

     (3     47     1     (1     9     13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Revenue

     204,323     197,607     157,266     585,614     459,085     622,425
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other operating income/(loss), net

            

IT Services

     14     15     —       2,179     (81     (81
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Other operating income/(loss), net

     14     15     —       2,179     (81     (81
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

            

IT Services

            

Americas 1

     11,390     10,521     8,075     31,290     23,177     33,040

Americas 2

     12,057     11,819     10,190     35,226     31,089     41,589

Europe

     9,172     9,186     9,283     26,683     22,969     31,673

APMEA

     2,483     3,028     2,778     8,577     8,402     11,476

Unallocated

     173     (156     2,945     73     3,896     5,153

Other operating income/(loss), net

     14     15     —       2,179     (81     (81
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

     35,289     34,413     33,271     104,028     89,452     122,850
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

IT Products

     96     94     78     137     (100     45

ISRE

     134     393     471     1,002     474     1,061

Reconciling Items

     16     20     (7     8     (940     (903
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

     35,535     34,920     33,813     105,175     88,886     123,053

Finance expenses

     (1,403     (1,459     (1,400     (3,608     (3,966     (5,088

Finance and Other Income

     3,578     4,114     5,975     12,311     16,465     20,912

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

     76     (10     101     73     126     130
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

     37,786     37,565     38,489     113,951     101,511     139,007
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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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: As announced on November 12, 2020, effective January 1, 2021, the Company re-organized IT Services segment.to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).

Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.

Americas 1 includes Healthcare and Medical Devices, Consumer Goods and Lifesciences, Retail, Transportation and Services, Communications, Media and Information services, Technology Products and Platforms, in the United States of America and entire business of Latin America (“LATAM”). Americas 2 includes Banking, Financial Services and Insurance, Manufacturing, Hi-tech, Energy and Utilities industry sectors in the United States of America and entire business of Canada. Europe consists of United Kingdom and Ireland, Switzerland, Germany, Benelux, Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.

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 December 31, 2021

  

IT Services Revenue as per IFRS

   $ 2,639.7  

Effect of Foreign currency exchange movement

   $ 17.2  
  

 

 

 

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

   $ 2,656.9  

 

Three Months ended December 31, 2021

  

IT Services Revenue as per IFRS

   $ 2,639.7  

Effect of Foreign currency exchange movement

   $ 21.2  
  

 

 

 

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

   $ 2,660.9  

 

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