Wipro Limited Announces Results for the Quarter Ended June 30, 2021 Under IFRS

IT Services delivers strong revenue growth for the quarter at 12.2% QoQ

Net Income & EPS showed a robust increase of 35.2% YoY and 41.0% YoY respectively

BANGALORE, India & EAST BRUNSWICK, N.J.–(BUSINESS WIRE)–#CRM–Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) today announced financial results under International Financial Reporting Standards (IFRS) for the Quarter ended June 30, 2021.

Highlights of the Results

Results for the Quarter ended June 30, 2021:

  • Gross Revenue was Rs 182.5 billion ($2.5 billion1), an increase of 12.4% QoQ and 22.4% YoY
  • IT Services Segment Revenue was at $2,414.5 million, an increase of 12.2% QoQ and 25.7% YoY
  • Non-GAAP2 constant currency IT Services Segment Revenue increased by 12.0% QoQ and 21.3% YoY
  • IT Services Operating Margin3 for the quarter was at 18.8%, a decrease of 29 bps YoY
  • Net Income for the quarter was Rs 32.3 billion ($434.8 million1), an increase of 35.2% YoY
  • Earnings Per Share for the quarter was at Rs 5.92 ($0.081), an increase of 41.0% YoY
  • Operating Cash Flow was at Rs 33.5 billion ($451.1 million1), which is 103.7% of Net Income
  • Our IT Services workforce crossed the milestone of 200K, closing headcount at 209,890
  • In June 2021, we issued our first ever dollar denominated bond offering of $750 million with a 5-year tenor

Performance for the quarter ended June 30, 2021

Thierry Delaporte, CEO and Managing Director said, “Despite the severe onslaught of the pandemic, we delivered our best-ever quarter, with secular growth across all SMUs, Sectors and GBLs. Our sequential revenue growth of 12.2% was well ahead of the top-end of our guidance range, both organically and with Capco. Though in the early days yet, I am pleased with the way we have collaborated with Capco to build our joint go-to-market offerings and strategy. We remain focused on deepening our customer relationships, investing in talent & capabilities for the future, and winning market share.”

Jatin Dalal, Chief Financial Officer said, “We delivered a robust growth in EPS of 41% YoY even as we continued to invest for growth. At 103.7% of our net income, our operating cash flows for the quarter remained healthy. I am also pleased to share that we have successfully issued our debut bond offering in the international markets for $750 million.”

Outlook for the quarter ending September 30, 2021

We expect Revenue from our IT Services business to be in the range of $2,535 million to $2,583 million*. This translates to a sequential growth of 5.0% to 7.0%.

Wipro signed an agreement to acquire Ampion on April 1, 2021, and we previously announced that it will be closed during Q1’22. However certain regulatory approvals are still pending and the transaction is now expected to be closed in Q2’22.

*Outlook is based on the following exchange rates: GBP/USD at 1.40, Euro/USD at 1.21, AUD/USD at 0.77, USD/INR at 73.79 and CAD/USD at 0.81

  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 74.33, as published by the Federal Reserve Board of Governors on June 30, 2021. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2021 was US$1= Rs 74.75
  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

IT Services

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

  • Wipro has won a multi-year engagement with a leading US-based communication services provider to deliver end-to-end quality engineering (QE) services for their applications, accelerating software release velocity and improving QE maturity. Additionally, the customer has selected Wipro to support database operations in a managed services model. Wipro will drive migration to new age databases and enhance operational efficiencies through automation
  • A US based oil field services company has awarded Wipro a strategic IT outsourcing contract to provide applications, infrastructure, & cybersecurity services. Wipro will also assist the customer in digital transformation projects including modernizing the IT operations, reducing IT operating cost, and improving IT services experience for end users to enable scalable services in a changing energy industry
  • A European multinational pharmaceutical company has awarded Wipro a multi-million-dollar engagement to personalize end user services leveraging digital interventions to ensure superior consumer experience for their employees globally
  • Wipro has won a large digital workplace contract from a US-based health insurance company to transform and manage their end user services globally to improve customer experience centered around a digital-first theme
  • A leading multinational electric and gas utility provider has awarded Wipro a global strategic IT infrastructure contract. The engagement will enhance the customer’s digital transformation journey, leveraging integrated managed services and consolidating multiple data centers to next-generation hosting services, through Wipro’s Boundaryless Enterprise solutions

Digital Services Highlights

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

  • A leading US-based distributor of plumbing supplies has selected Wipro to support its cloud transformation journey by embedding quality engineering in the development lifecycle encompassing CRM implementation, data migration, and legacy applications. Additionally, Wipro will provide managed services for Cloud ERP covering multiple business functions, resulting in improved business agility and enhancing customer experience across more than 1,400 store locations
  • A global shipping and logistics company has engaged Wipro for the digital transformation and modernization of its integrated shipping portfolio. The engagement will make it easier for the end customers to integrate their services, while providing improved reliability and speed, thus enabling the client to compete in the global e-commerce market
  • Wipro has won a strategic engagement with a leading US-based financial services company to accelerate their digital transformation journey by implementing an outcome-based high velocity software engineering model enabled by multi-skilled agile teams deployed globally
  • A globally integrated energy company has selected Wipro’s crowdsourcing platform Topcoder to design their next-generation customer-centric experience for promotion and loyalty management. Topcoder’s on-demand community will help accelerate product development, applying experience design to enable scale and expansion of the digital product globally
  • A leading US-based medical devices original equipment manufacturer (OEM) has selected Wipro to build and launch a global patient engagement platform encompassing their cardiac rhythm management portfolio of devices

Analyst Recognition

  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Supply Chain SAP Ecosystems Services 2021 Vendor Assessment (Doc #US47537120, Mar 2021)
  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Smart Manufacturing Service Providers 2021 Vendor Assessment (Doc #EUR147689021, Jun 2021)
  • Wipro was positioned as a Leader in IDC MarketScape: Worldwide Artificial Intelligence Services 2021 Vendor Assessment ( Doc #US46741921, May 2021)
  • Wipro was recognized as a Leader in Everest Group’s IT Managed Security Services PEAK Matrix® Assessment 2021
  • Wipro was recognized as a Leader and Star Performer in Everest Group’s Life Sciences Operations Services PEAK Matrix® Assessment 2021
  • Wipro was positioned as a Leader in Everest Group’s Application and Digital Services in Banking PEAK Matrix® Assessment 2021
  • Wipro was rated as a Leader in ISG Provider Lens™ ServiceNow Ecosystem Partners 2021: Implementation & Integration Services and Managed Services Providers – US
  • Wipro was rated as a Leader in ISG Provider Lens™ Microsoft Ecosystem 2021: Managed Services for Azure, SAP on Azure, Dynamics 365 and Office 365 Modern Workplace – US
  • Wipro ranks among the Top Service Providers in Customer Satisfaction Category in Whitelane & PA Consulting UK IT Outsourcing Study 2021

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 Rs 1.3 billion ($17.6 million1)
  • IT Products Segment Results for the quarter was a loss of Rs 0.1 billion ($0.7 million1)

India business from State Run Enterprises (ISRE)

  • India SRE Segment Revenue for the quarter was Rs 1.9 billion ($26.1 million1)
  • India SRE Segment Results for the quarter was a profit of Rs 0.5 billion ($6.4 million1)

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 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 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.

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, 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 (09:45 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=WIPRO210415

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 200,000 dedicated employees serving clients across six continents. Together, we discover ideas and connect the dots to build a better and a bold new future.

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, 2021

As at June 30, 2021

Convenience translation into

US dollar in millions

Refer footnote 1

ASSETS

Goodwill

139,127

223,485

3,007

Intangible assets

13,085

43,029

579

Property, plant and equipment

85,192

86,720

1,167

Right-of-Use assets

16,420

19,804

266

Financial assets

Derivative assets

16

17

^

Investments

10,576

11,024

148

Trade receivables

4,358

4,392

59

Other financial assets

6,088

8,248

111

Investments accounted for using the equity method

1,464

709

10

Deferred tax assets

1,664

2,743

37

Non-current tax assets

14,323

11,099

149

Other non-current assets

15,935

11,795

159

Total non-current assets

308,248

423,065

5,692

Inventories

1,064

945

13

Financial assets

Derivative assets

4,064

2,458

33

Investments

175,707

167,034

2,247

Cash and cash equivalents

169,793

140,617

1,892

Trade receivables

94,298

104,377

1,404

Unbilled receivables

27,124

33,663

453

Other financial assets

7,245

8,670

117

Contract assets

16,507

20,052

270

Current tax assets

2,461

4,587

62

Other current assets

24,923

25,966

349

Total current assets

523,186

508,369

6,840

 

TOTAL ASSETS

831,434

931,434

12,532

 

EQUITY

Share capital

10,958

10,958

147

Share premium

714

740

10

Retained earnings

466,692

498,003

6,700

Share-based payment reserve

3,071

3,884

52

SEZ Re-investment reserve

41,154

42,297

569

Other components of equity

30,506

33,785

455

Equity attributable to the equity holders of the Company

553,095

589,667

7,933

Non-controlling interests

1,498

1,095

15

TOTAL EQUITY

554,593

590,762

7,948

 

LIABILITIES

Financial liabilities

Loans and borrowings

7,458

55,392

745

Lease liabilities

13,513

15,862

213

Other financial liabilities

2,291

3,349

45

Deferred tax liabilities

4,633

14,367

193

Non-current tax liabilities

11,069

11,083

149

Other non-current liabilities

7,835

10,082

136

Provisions

2

1

^

Total non-current liabilities

46,801

110,136

1,481

Financial liabilities

Loans, borrowings and bank overdrafts

75,874

60,105

809

Derivative liabilities

1,070

1,218

16

Trade payables and accrued expenses

78,870

88,941

1,197

Lease liabilities

7,669

8,811

119

Other financial liabilities

1,470

4,091

55

Contract liabilities

22,535

21,153

286

Current tax liabilities

17,324

18,088

243

Other current liabilities

24,552

27,450

369

Provisions

676

679

9

Total current liabilities

230,040

230,536

3,103

TOTAL LIABILITIES

276,841

340,672

4,584

 

TOTAL EQUITY AND LIABILITIES

831,434

931,434

12,532

^ 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,

2020

2021

2021

Convenience translation

into US dollar in millions

Refer footnote 1

Revenues

149,131

 

182,524

 

2,456

 

Cost of revenues

(103,700

)

(127,567

)

(1,716

)

Gross profit

45,431

 

54,957

 

740

 

 

Selling and marketing expenses

(9,789

)

(13,017

)

(175

)

General and administrative expenses

(10,006

)

(10,530

)

(142

)

Foreign exchange gains/(losses), net

1,205

 

1,160

 

16

 

Other operating income/(loss), net

97

 

2,150

 

29

 

Results from operating activities

26,938

 

34,720

 

468

 

 

Finance expenses

(1,299

)

(746

)

(10

)

Finance and other income

5,281

 

4,619

 

62

 

Share of net profit of associates accounted for using the equity method

31

 

7

 

^

 

Profit before tax

30,951

 

38,600

 

520

 

Income tax expense

(6,838

)

(6,225

)

(84

)

Profit for the period

24,113

 

32,375

 

436

 

 

Profit attributable to:

Equity holders of the Company

23,902

 

32,321

 

435

 

Non-controlling interests

211

 

54

 

1

 

Profit for the period

24,113

 

32,375

 

436

 

 

Earnings per equity share:

Attributable to equity holders of the Company

Basic

4.20

 

5.92

 

0.08

 

Diluted

4.19

 

5.90

 

0.08

 

 

Weighted average number of equity shares

used in computing earnings per equity share

Basic

5,693,348,171

 

5,462,996,981

 

5,462,996,981

 

Diluted

5,703,168,248

 

5,476,992,662

 

5,476,992,662

 

^ Value is less than 1

 

Additional Information:

Particulars

Three months ended

Year ended

June 30,

2021

March 31,

2021

June 30,

2020

March 31,

2021

Audited

Audited

Audited

Audited

Revenue

IT Services

Americas 1

49,683

 

46,510

 

42,612

 

178,091

 

Americas 2

55,105

 

46,475

 

44,194

 

179,821

 

Europe

54,461

 

45,107

 

38,944

 

165,441

 

APMEA

21,232

 

20,825

 

20,158

 

82,462

 

Total of IT Services

180,481

 

158,917

 

145,908

 

605,815

 

IT Products

1,311

 

2,117

 

2,306

 

7,685

 

ISRE

1,937

 

2,302

 

2,111

 

8,912

 

Reconciling Items

(45

)

4

 

11

 

13

 

Total Revenue

183,684

 

163,340

 

150,336

 

622,425

 

 

Other operating income/(loss), net

IT Services

2,150

 

 

97

 

(81

)

Total Other operating income/(loss), net

2,150

 

 

97

 

(81

)

 

Segment Result

IT Services

Americas 1

9,379

 

9,863

 

6,504

 

33,040

 

Americas 2

11,350

 

10,500

 

10,422

 

41,589

 

Europe

8,325

 

8,704

 

7,547

 

31,673

 

APMEA

3,066

 

3,074

 

2,546

 

11,476

 

Unallocated

56

 

1,257

 

748

 

5,153

 

Other operating income/(loss), net

2,150

 

 

97

 

(81

)

Total of IT Services

34,326

 

33,398

 

27,864

 

122,850

 

IT Products

(53

)

145

 

123

 

45

 

ISRE

475

 

587

 

(106

)

1,061

 

Reconciling Items

(28

)

37

 

(943

)

(903

)

Total

34,720

 

34,167

 

26,938

 

123,053

 

Finance expenses

(746

)

(1,122

)

(1,299

)

(5,088

)

Finance and Other Income

4,619

 

4,447

 

5,281

 

20,912

 

Share of net profit of associates accounted for using the equity method

7

 

4

 

31

 

130

 

Profit before tax

38,600

 

37,496

 

30,951

 

139,007

 

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 June 30, 2021

IT Services Revenue as per IFRS

$

2,414.5

 

Effect of Foreign currency exchange movement

$

(4.5

)

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

$

2,410.0

 

 

 

 

 

Three Months ended June 30, 2021

IT Services Revenue as per IFRS

$

2,414.5

 

Effect of Foreign currency exchange movement

$

(83.8

)

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

$

2,330.6

 

 

Contacts

Contact for Investor Relations

Aparna Iyer

Phone: +91-80-6142 7139

iyer.aparna@wipro.com

Abhishek Kumar Jain

Phone: +91-9845791363

abhishekkumar.jain@wipro.com

Contact for Media & Press
Vipin Nair

Phone: +91-80-6142 6450

vipin.nair1@wipro.com