Total Bookings of $3.7 billion for the Quarter
Large deal Bookings growth of 9% YoY. Highest in last 8 Quarters
Operating Cash Flows at 130% of Net Income
EAST BRUNSWICK, N.J. & BANGALORE, India–(BUSINESS WIRE)–$WIPRO #GrossRevenue–Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading technology services and consulting company, announced financial results under International Financial Reporting Standards (IFRS) for the quarter ended June 30, 2023.
Highlights of the Results
Results for the Quarter ended June 30, 2023:
Outlook for the Quarter ending September 30, 2023
We expect Revenue from our IT Services business segment to be in the range of $2,722 million to $2,805 million*. This translates to sequential guidance of -2.0% to +1.0% in constant currency terms.
* Outlook for the Quarter ending September 30, 2023, is based on the following exchange rates: GBP/USD at 1.26, Euro/USD at 1.10, AUD/USD at 0.67, USD/INR at 82.34 and CAD/USD at 0.76
Performance for the Quarter ended June 30, 2023
“Wipro’s first quarter results come with a strong backbone of large deal bookings, robust client additions, and resilient margins,” said Thierry Delaporte, CEO and Managing Director. “Despite a gradual reduction in clients’ discretionary spending, we maintained new business momentum. We earned our clients’ trust with strong delivery, innovation, and expanded services that strengthen our long-term businesses, and help capture market share. The launch of Wipro ai360 and the USD 1 billion investment solidifies Wipro’s position as a leading transformation partner that delivers the results and innovation our clients need to future-proof their businesses.”
Jatin Dalal, Chief Financial Officer, said, “Our ongoing focus on operational improvement has ensured that margin remains steady even in a softening revenue environment. Our operating Margin for the first quarter was 16% an expansion of 112 basis point YoY. We generated strong operating cash flows at 130% of our net income for the Quarter. EPS for the quarter grew by 11.5% YoY.”
Analyst Recognition
IT Products
Please refer to the table at the end for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.
Highlights of Strategic Deal Wins
In the first quarter, Wipro continued to win large and strategic deals across industries. Key highlights include:
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 = Rs 82.06, as published by the Federal Reserve Board of Governors on June 30, 2023. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2023 was US$1= Rs 81.90 | |
2. | Constant currency for a period is the product of volumes in that period times the average actual exchange rate of the corresponding comparative period | |
3. | Total Bookings refers to the total contract value of all orders that were booked during the period including new orders, renewals, and increases to existing contracts. Bookings do not reflect subsequent terminations or reductions related to bookings originally recorded in prior fiscal periods. Bookings are recorded using then-existing foreign currency exchange rates and are not subsequently adjusted for foreign currency exchange rate fluctuations. The revenues from these contracts accrue over the tenure of the contract. For constant currency growth rates, refer note 2 | |
4. | Large deal bookings consist of deals greater than or equal to $30 million in total contract value | |
5. | IT Services Operating Margin refers to Segment Results Total as reflected in IFRS financials. | |
6. | Voluntary attrition is in IT Services computed on a quarterly annualised basis and excludes DOP | |
7. | Effective April 1, 2023, we merged our ISRE segment with our IT Services segment. The QoQ and YoY growth rates for the quarter ended June 30, 2023 were computed by rebaselining ISRE numbers in Q4’23 and Q1’23 |
About Key Metrics and Non-GAAP Financial Measures
This press release contains key metrics and 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 at the end 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.
Our key metrics and non-GAAP financial measures are 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. Our key metrics and non-GAAP financial measures are not comparable to, nor should be substituted for, an analysis of our revenue over time and involve estimates and judgments. In addition to our non-GAAP measures, 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, 2023, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com/investors/
Quarterly Conference Call
We will hold an earnings conference call today at 07:30 p.m. Indian Standard Time (10:00 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=WIP130723
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 technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. Leveraging our holistic portfolio of capabilities in consulting, design, engineering, and operations, we help clients realize their boldest ambitions and build future-ready, sustainable businesses. With around 250,000 employees and business partners across 65 countries, we deliver on the promise of helping our clients, colleagues, and communities thrive in an ever-changing world. For additional information, visit us at www.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.
WIPRO LIMITED AND SUBSIDIARIES | ||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||
(Rs in millions, except share and per share data, unless otherwise stated) | ||||||
| As at March 31, 2023 | As at June 30, 2023 | ||||
Convenience translation into US dollar in millions Refer footnote | ||||||
ASSETS | ||||||
Goodwill | 307,970 | 306,970 | 3,741 | |||
Intangible assets | 43,045 | 41,155 | 502 | |||
Property, plant and equipment | 88,659 | 86,464 | 1,054 | |||
Right-of-Use assets | 18,702 | 18,448 | 225 | |||
Financial assets | ||||||
Derivative assets | 29 | 193 | 2 | |||
Investments | 20,720 | 20,782 | 253 | |||
Trade receivables | 863 | 861 | 10 | |||
Other financial assets | 6,330 | 6,368 | 78 | |||
Investments accounted for using the equity method | 780 | 782 | 10 | |||
Deferred tax assets | 2,100 | 1,942 | 24 | |||
Non-current tax assets | 11,922 | 12,295 | 150 | |||
Other non-current assets | 13,606 | 13,247 | 161 | |||
Total non-current assets | 514,726 | 509,507 | 6,210 | |||
Inventories | 1,188 | 1,375 | 17 | |||
Financial assets | ||||||
Derivative assets | 1,844 | 3,297 | 40 | |||
Investments | 309,232 | 351,156 | 4,279 | |||
Cash and cash equivalents | 91,880 | 83,616 | 1,019 | |||
Trade receivables | 126,350 | 114,457 | 1,395 | |||
Unbilled receivables | 60,515 | 64,467 | 786 | |||
Other financial assets | 9,096 | 12,478 | 152 | |||
Contract assets | 23,001 | 25,168 | 307 | |||
Current tax assets | 5,091 | 4,750 | 58 | |||
Other current assets | 32,899 | 30,344 | 370 | |||
Total current assets | 661,096 | 691,108 | 8,423 | |||
TOTAL ASSETS | 1,175,822 | 1,200,615 | 14,633 | |||
EQUITY | ||||||
Share capital | 10,976 | 10,978 | 134 | |||
Share premium | 3,689 | 4,155 | 51 | |||
Retained earnings | 660,964 | 545,698 | 6,650 | |||
Share-based payment reserve | 5,632 | 6,268 | 76 | |||
Special Economic Zone re-investment reserve | 46,803 | 45,891 | 559 | |||
Other components of equity | 53,100 | 56,039 | 683 | |||
Equity attributable to the equity holders of the Company | 781,164 | 669,029 | 8,153 | |||
Non-controlling interests | 589 | 624 | 8 | |||
TOTAL EQUITY | 781,753 | 669,653 | 8,161 | |||
LIABILITIES | ||||||
Financial liabilities | ||||||
Loans and borrowings | 61,272 | 61,197 | 746 | |||
Lease liabilities | 15,953 | 16,079 | 196 | |||
Derivative liabilities | 179 | 45 | 1 | |||
Other financial liabilities | 2,649 | 1,547 | 19 | |||
Deferred tax liabilities | 15,153 | 15,772 | 192 | |||
Non-current tax liabilities | 21,777 | 23,504 | 286 | |||
Other non-current liabilities | 9,333 | 10,151 | 124 | |||
Provisions | ^ | – | – | |||
Total non-current liabilities | 126,316 | 128,295 | 1,564 | |||
Financial liabilities | ||||||
Loans, borrowings and bank overdrafts | 88,821 | 88,712 | 1,081 | |||
Lease liabilities | 8,620 | 8,706 | 106 | |||
Derivative liabilities | 2,825 | 1,448 | 18 | |||
Trade payables and accrued expenses | 89,054 | 80,735 | 984 | |||
Other financial liabilities | 4,141 | 123,413 | 1,504 | |||
Contract liabilities | 22,682 | 19,595 | 239 | |||
Current tax liabilities | 18,846 | 20,898 | 255 | |||
Other current liabilities | 30,215 | 56,760 | 692 | |||
Provisions | 2,549 | 2,400 | 29 | |||
Total current liabilities | 267,753 | 402,667 | 4,908 | |||
TOTAL LIABILITIES | 394,069 | 530,962 | 6,472 | |||
TOTAL EQUITY AND LIABILITIES | 1,175,822 | 1,200,615 | 14,633 | |||
^ Value is less than 1 | ||||||
WIPRO LIMITED AND SUBSIDIARIES | |||||||||
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME | |||||||||
(Rs in millions, except share and per share data, unless otherwise stated) | |||||||||
Three months ended June 30, | |||||||||
2022 | 2023 | 2023 | |||||||
Convenience translation into US dollar in millions | |||||||||
Revenues | 215,286 |
| 228,310 |
| 2,782 |
| |||
Cost of revenues | (155,600 | ) | (161,261 | ) | (1,965 | ) | |||
Gross profit | 59,686 |
| 67,049 |
| 817 |
| |||
Selling and marketing expenses | (15,359 | ) | (16,584 | ) | (202 | ) | |||
General and administrative expenses | (13,471 | ) | (15,887 | ) | (194 | ) | |||
Foreign exchange gains/(losses), net | 1,034 |
| (62 | ) | (1 | ) | |||
Results from operating activities | 31,890 |
| 34,516 |
| 420 |
| |||
Finance expenses | (2,045 | ) | (3,086 | ) | (38 | ) | |||
Finance and other income | 3,690 |
| 6,542 |
| 80 |
| |||
Share of net profit/ (loss) of associates accounted for using the equity method | (15 | ) | 3 |
| ^ |
| |||
Profit before tax | 33,520 |
| 37,975 |
| 462 |
| |||
Income tax expense | (7,931 | ) | (9,115 | ) | (111 | ) | |||
Profit for the period | 25,589 |
| 28,860 |
| 351 |
| |||
Profit attributable to: | |||||||||
Equity holders of the Company | 25,636 |
| 28,701 |
| 349 |
| |||
Non-controlling interests | (47 | ) | 159 |
| 2 |
| |||
Profit for the period | 25,589 |
| 28,860 |
| 351 |
| |||
Earnings per equity share: | |||||||||
Attributable to equity holders of the Company | |||||||||
Basic | 4.69 |
| 5.23 |
| 0.06 |
| |||
Diluted | 4.67 |
| 5.12 |
| 0.06 |
| |||
Weighted average number of equity shares | |||||||||
used in computing earnings per equity share | |||||||||
Basic | 5,471,449,783 |
| 5,482,733,329 |
| 5,482,733,329 |
| |||
Diluted | 5,485,057,994 |
| 5,600,307,315 |
| 5,600,307,315 |
| |||
^ Value is less than 1 | |||||||||
Additional Information:
Particulars | Three months ended | Year ended | ||||||
June 30, |
March 31, |
June 30, |
March | |||||
Audited | Audited | Audited | Audited | |||||
Segment revenue | ||||||||
IT Services | ||||||||
Americas 1 | 65,607 |
| 66,430 |
| 61,702 |
| 261,270 |
|
Americas 2 | 68,303 |
| 70,563 |
| 66,613 |
| 278,374 |
|
Europe | 67,134 |
| 67,562 |
| 60,276 |
| 256,845 |
|
APMEA | 26,510 |
| 27,207 |
| 25,783 |
| 106,812 |
|
Total of IT Services | 227,554 |
| 231,762 |
| 214,374 |
| 903,301 |
|
IT Products | 694 |
| 1,131 |
| 1,946 |
| 6,047 |
|
Total segment revenue | 228,248 |
| 232,893 |
| 216,320 |
| 909,348 |
|
Segment result | ||||||||
IT Services | ||||||||
Americas 1 | 13,537 |
| 13,445 |
| 11,570 |
| 51,555 |
|
Americas 2 | 14,169 |
| 15,940 |
| 13,224 |
| 59,689 |
|
Europe | 9,968 |
| 11,024 |
| 7,986 |
| 37,667 |
|
APMEA | 2,800 |
| 3,030 |
| 2,069 |
| 10,681 |
|
Unallocated | (3,957 | ) | (5,773 | ) | (2,844 | ) | (18,368 | ) |
Total of IT Services | 36,517 |
| 37,666 |
| 32,005 |
| 141,224 |
|
IT Products | (161 | ) | (59 | ) | (55 | ) | (176 | ) |
Reconciling Items | (1,840 | ) | (30 | ) | (60 | ) | (1,442 | ) |
Total segment result | 34,516 |
| 37,577 |
| 31,890 |
| 139,606 |
|
Finance expenses | (3,086 | ) | (2,860 | ) | (2,045 | ) | (10,077 | ) |
Finance and Other Income | 6,542 |
| 5,463 |
| 3,690 |
| 18,185 |
|
Share of net profit/ (loss) of associates accounted for using the equity method | 3 |
| 4 |
| (15 | ) | (57 | ) |
Profit before tax | 37,975 |
| 40,184 |
| 33,520 |
| 147,657 |
|
Effective April 1, 2023, we merged our India State Run Enterprise segment (“ISRE”) with our IT Services segment. Currently, the Company is organized into the following operating segments: IT Services and IT Products.
IT Services: As announced on November 12, 2020, effective January 1, 2021, we re-organized our IT Services segment into 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”).
Contacts
Contact for Investor Relations
Dipak Kumar Bohra
Phone: +91-80-6142 7201
dipak.bohra@wipro.com
Abhishek Jain
Phone: +91-80-6142 6143
abhishek.jain2@wipro.com
Contact for Media & Press
Phone: +91-80-6142 6450
media-relations@wipro.com
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