IT Services Revenue for the quarter increased 10.4% YoY
IT Services improves Operating Margin to 16.3%
Total Bookings up by 26% and large deal bookings up by 69% YoY
Operating Cash Flows at 143% of Net Income for the quarter
NEW YORK & BANGALORE, India–(BUSINESS WIRE)–$WIPRO #Digital–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 December 31, 2022.
Highlights of the Results
Results for the Quarter ended December 31, 2022:
Performance for the Quarter ended December 31, 2022
Thierry Delaporte, CEO and Managing Director, said, �I am pleased to report that we have delivered another quarter of double-digit revenue growth. Our Total Bookings were over $4.3 billion, led by solid large deal signings of over $1 billion. We improved our margins by 120 basis points and our attrition moderated for the fourth quarter in a row.
We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization. Our ability to deliver on client objectives regardless of where they are in their cloud journeys is positioning us favourably in a consolidating market.
As we move ahead, we expect to continue to benefit from these trends and help clients build future-proof, resilient enterprises.
Jatin Dalal, Chief Financial Officer, said, Our Operating margins are now at 16.3%, which is an expansion of 120 basis points from last quarter. This expansion of margins was after absorbing the investments we made in our people by way of salary increases, promotions and long-term incentives for our senior leadership. Margin growth was led by strong operational improvements and automation-led efficiencies. We generated strong operating cash flows at 143% of our net income for the quarter and our EPS increased by 14.6% quarter-over-quarter.
Outlook for the Year ending March 31, 2023
We expect Revenue from our IT Services business for the full year to be in the range of 11.5% to 12.0%, in constant currency terms.
* Outlook for the year ending March 31, 2023, is based on the following exchange rates: GBP/USD at 1.36, Euro/USD at 1.16, AUD/USD at 0.73, USD/INR at 74.78 and CAD/USD at 0.79
IT Services Large deals
Wipro continued its momentum in winning large deals with our customers as described below:
IT Services – Digital services deals
We continue to see increasing traction in digital oriented and other strategic deals as illustrated below:
Analyst Recognition
Disclaimer: *Gartner, Magic Quadrant for Managed Network Services , Ted Corbett, et al, 5 December 2022. GARTNER and MAGIC QUADRANT are registered trademarks and service marks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. 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’s research publications consist of the opinions of Gartners 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
India business from State Run Enterprises (ISRE)
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.
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 December 31, 2022, 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 07:30 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=WIP13012023.
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 over 250,000 employees and business partners across 66 countries, we deliver on the promise of helping our customers, 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 Wipros beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipros control. Such statements include, but are not limited to, statements regarding Wipros 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 companys 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, 2022 |
| As at December 31, 2022 | |||
|
|
|
|
Convenience translation into | ||
ASSETS | ||||||
Goodwill | 246,989 | 309,525 | 3,742 | |||
Intangible assets | 43,555 | 45,847 | 554 | |||
Property, plant and equipment | 90,898 | 90,147 | 1,090 | |||
Right-of-Use assets | 18,870 | 19,381 | 234 | |||
Financial assets | ||||||
Derivative assets | 6 | 88 | 1 | |||
Investments | 19,109 | 20,808 | 252 | |||
Trade receivables | 4,765 | 4,626 | 56 | |||
Other financial assets | 6,084 | 6,123 | 74 | |||
Investments accounted for using the equity method | 774 | 782 | 9 | |||
Deferred tax assets | 2,298 | 4,043 | 49 | |||
Non-current tax assets | 10,256 | 11,450 | 138 | |||
Other non-current assets | 14,826 | 14,045 | 170 | |||
Total non-current assets | 458,430 | 526,865 | 6,369 | |||
Inventories | 1,334 | 2,019 | 24 | |||
Financial assets | ||||||
Derivative assets | 3,032 | 930 | 11 | |||
Investments | 241,655 | 291,743 | 3,527 | |||
Cash and cash equivalents | 103,836 | 87,307 | 1,055 | |||
Trade receivables | 115,219 | 124,761 | 1,510 | |||
Unbilled receivables | 60,809 | 56,316 | 681 | |||
Other financial assets | 42,914 | 9,532 | 115 | |||
Contract assets | 20,647 | 25,181 | 304 | |||
Current tax assets | 2,373 | 4,463 | 54 | |||
Other current assets | 28,933 | 36,123 | 437 | |||
Total current assets | 620,752 | 638,375 | 7,718 | |||
TOTAL ASSETS | 1,079,182 | 1,165,240 | 14,087 | |||
EQUITY | ||||||
Share capital | 10,964 | 10,974 | 133 | |||
Share premium | 1,566 | 3,151 | 38 | |||
Retained earnings | 551,252 | 635,267 | 7,680 | |||
Share-based payment reserve | 5,258 | 6,086 | 74 | |||
Special Economic Zone re-investment reserve | 47,061 | 47,014 | 568 | |||
Other components of equity | 42,057 | 52,382 | 633 | |||
Equity attributable to the equity holders of the Company | 658,158 | 754,874 | 9,126 | |||
Non-controlling interests | 515 | 402 | 5 | |||
TOTAL EQUITY | 658,673 | 755,276 | 9,131 | |||
LIABILITIES | ||||||
Financial liabilities | ||||||
Loans and borrowings | 56,463 | 61,718 | 746 | |||
Lease liabilities | 15,177 | 15,520 | 188 | |||
Derivative liabilities | 48 | 165 | 2 | |||
Other financial liabilities | 2,961 | 2,267 | 27 | |||
Deferred tax liabilities | 12,141 | 13,338 | 161 | |||
Non-current tax liabilities | 17,818 | 21,846 | 264 | |||
Other non-current liabilities | 7,571 | 9,865 | 119 | |||
Provisions | 1 | ^ | ^ | |||
Total non-current liabilities | 112,180 | 124,719 | 1,507 | |||
Financial liabilities | ||||||
Loans, borrowings and bank overdrafts | 95,233 | 96,511 | 1,167 | |||
Lease liabilities | 9,056 | 9,300 | 112 | |||
Derivative liabilities | 585 | 7,199 | 87 | |||
Trade payables and accrued expenses | 99,034 | 89,613 | 1,084 | |||
Other financial liabilities | 33,110 | 4,341 | 52 | |||
Contract liabilities | 27,915 | 26,903 | 325 | |||
Current tax liabilities | 13,231 | 19,580 | 237 | |||
Other current liabilities | 27,394 | 29,274 | 354 | |||
Provisions | 2,771 | 2,524 | 31 | |||
Total current liabilities | 308,329 | 285,245 | 3,449 | |||
TOTAL LIABILITIES | 420,509 | 409,964 | 4,956 | |||
TOTAL EQUITY AND LIABILITIES | 1,079,182 | 1,165,240 | 14,087 | |||
^ 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 December 31, | Nine months ended December 31, | |||||||||||||||||
2021 |
| 2022 |
| 2022 |
| 2021 |
| 2022 |
| 2022 |
| |||||||
Convenience |
Convenience | |||||||||||||||||
Revenues | 203,136 |
| 232,290 |
| 2,808 |
| 582,334 |
| 672,973 |
| 8,136 |
| ||||||
Cost of revenues | (142,778 | ) | (163,273 | ) | (1,974 | ) | (407,907 | ) | (482,708 | ) | (5,836 | ) | ||||||
Gross profit | 60,358 |
| 69,017 |
| 834 |
| 174,427 |
| 190,265 |
| 2,300 |
| ||||||
Selling and marketing expenses | (13,988 | ) | (17,752 | ) | (215 | ) | (40,857 | ) | (48,251 | ) | (583 | ) | ||||||
General and administrative expenses | (12,036 | ) | (15,020 | ) | (181 | ) | (33,854 | ) | (43,467 | ) | (525 | ) | ||||||
Foreign exchange gains/(losses), net | 1,187 |
| 1,391 |
| 17 |
| 3,280 |
| 3,482 |
| 42 |
| ||||||
Other operating income | 14 |
| – |
| – |
| 2,179 |
| – |
| – |
| ||||||
Results from operating activities | 35,535 |
| 37,636 |
| 455 |
| 105,175 |
| 102,029 |
| 1,234 |
| ||||||
Finance expenses | (1,403 | ) | (2,902 | ) | (35 | ) | (3,608 | ) | (7,217 | ) | (87 | ) | ||||||
Finance and other income | 3,578 |
| 4,992 |
| 61 |
| 12,311 |
| 12,722 |
| 154 |
| ||||||
Share of net profit/ (loss) of associates | 76 |
| 26 |
| ^ | 73 |
| (61 | ) | (1 | ) | |||||||
Profit before tax | 37,786 |
| 39,752 |
| 481 |
| 113,951 |
| 107,473 |
| 1,300 |
| ||||||
Income tax expense | (8,063 | ) | (9,102 | ) | (110 | ) | (22,547 | ) | (24,743 | ) | (299 | ) | ||||||
Profit for the period | 29,723 |
| 30,650 |
| 371 |
| 91,404 |
| 82,730 |
| 1,001 |
| ||||||
Profit attributable to: | ||||||||||||||||||
Equity holders of the Company | 29,690 |
| 30,529 |
| 370 |
| 91,318 |
| 82,755 |
| 1,001 |
| ||||||
Non-controlling interests | 33 |
| 121 |
| 1 |
| 86 |
| (25 | ) | ^ | |||||||
Profit for the period | 29,723 |
| 30,650 |
| 371 |
| 91,404 |
| 82,730 |
| 1,001 |
| ||||||
Earnings per equity share: | ||||||||||||||||||
Attributable to equity holders of the Company | ||||||||||||||||||
Basic | 5.43 |
| 5.57 |
| 0.07 |
| 16.71 |
| 15.12 |
| 0.18 |
| ||||||
Diluted | 5.42 |
| 5.56 |
| 0.07 |
| 16.67 |
| 15.08 |
| 0.18 |
| ||||||
Weighted average number of equity shares | ||||||||||||||||||
used in computing earnings per equity share | ||||||||||||||||||
Basic | 5,467,954,878 |
| 5,480,138,169 |
| 5,480,138,169 |
| 5,465,359,077 |
| 5,475,982,068 |
| 5,475,982,068 |
| ||||||
Diluted | 5,481,204,821 |
| 5,486,025,875 |
| 5,486,025,875 |
| 5,478,766,612 |
| 5,487,483,177 |
| 5,487,483,177 |
| ||||||
^ Value is less than 1 |
Additional Information:
Particulars | Three months ended | Nine months ended | Year ended | |||||||||
December |
September |
December |
December |
December |
March | |||||||
Audited | Audited | Audited | Audited | Audited | Audited | |||||||
Revenue | ||||||||||||
IT Services | ||||||||||||
Americas 1 | 67,788 |
| 65,350 |
| 56,644 |
| 194,840 |
| 159,532 |
| 217,874 |
|
Americas 2 | 71,168 |
| 70,030 |
| 61,076 |
| 207,811 |
| 175,441 |
| 239,404 |
|
Europe | 66,323 |
| 62,684 |
| 59,620 |
| 189,283 |
| 172,700 |
| 233,443 |
|
APMEA | 25,278 |
| 25,565 |
| 23,596 |
| 75,100 |
| 67,543 |
| 91,103 |
|
Total of IT Services | 230,557 |
| 223,629 |
| 200,936 |
| 667,034 |
| 575,216 |
| 781,824 |
|
IT Products | 1,721 |
| 1,249 |
| 1,767 |
| 4,916 |
| 4,972 |
| 6,173 |
|
ISRE | 1,403 |
| 1,576 |
| 1,623 |
| 4,505 |
| 5,427 |
| 7,295 |
|
Reconciling Items | – |
| – |
| (3 | ) | – |
| (1 | ) | (3 | ) |
Total Revenue | 233,681 |
| 226,454 |
| 204,323 |
| 676,455 |
| 585,614 |
| 795,289 |
|
Other operating income | ||||||||||||
IT Services | – |
| – |
| 14 |
| – |
| 2,179 |
| 2,186 |
|
Total Other operating income | – |
| – |
| 14 |
| – |
| 2,179 |
| 2,186 |
|
Segment Result | ||||||||||||
IT Services | ||||||||||||
Americas 1 | 12,986 |
| 12,358 |
| 11,390 |
| 36,374 |
| 31,290 |
| 42,820 |
|
Americas 2 | 14,776 |
| 14,219 |
| 12,057 |
| 41,449 |
| 35,226 |
| 47,376 |
|
Europe | 9,485 |
| 7,875 |
| 9,172 |
| 24,734 |
| 26,683 |
| 35,739 |
|
APMEA | 2,476 |
| 2,194 |
| 2,483 |
| 6,274 |
| 8,577 |
| 10,523 |
|
Unallocated | (2,219 | ) | (2,845 | ) | 173 |
| (5,694 | ) | 73 |
| 434 |
|
Other operating income | – |
| – |
| 14 |
| – |
| 2,179 |
| 2,186 |
|
Total of IT Services | 37,504 |
| 33,801 |
| 35,289 |
| 103,137 |
| 104,028 |
| 139,078 |
|
IT Products | 41 |
| (103 | ) | 96 |
| (117 | ) | 137 |
| 115 |
|
ISRE | 102 |
| 146 |
| 134 |
| 421 |
| 1,002 |
| 1,173 |
|
Reconciling Items | (11 | ) | (1,341 | ) | 16 |
| (1,412 | ) | 8 |
| (80 | ) |
Total Segment result | 37,636 |
| 32,503 |
| 35,535 |
| 102,029 |
| 105,175 |
| 140,286 |
|
Finance expenses | (2,902 | ) | (2,270 | ) | (1,403 | ) | (7,217 | ) | (3,608 | ) | (5,325 | ) |
Finance and Other Income | 4,992 |
| 4,040 |
| 3,578 |
| 12,722 |
| 12,311 |
| 16,257 |
|
Share of net profit/ (loss) of associates | 26 |
| (72 | ) | 76 |
| (61 | ) | 73 |
| 57 |
|
Profit before tax | 39,752 |
| 34,201 |
| 37,786 |
| 107,473 |
| 113,951 |
| 151,275 |
|
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.
Contacts
Contact for Investor Relations
Dipak Kumar Bohra
Phone: +91-80-6142 7201
dipak.bohra@wipro.com
Abhishek Kumar Jain
Phone: +91-80-6142 6143
abhishekkumar.jain@wipro.com
Contact for Media & Press
Purnima Burman
Phone: +91-80-6142 6450
purnima.burman@wipro.com
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